Reliance Infrastructure Ltd Management Discussions

Economic Overview

Global Economy1

Despite ongoing geopolitical tensions, shifting trade dynamics, realignment of supply chains and alterations in monetary policy, the global economy demonstrated resilience in the year 2024, recording a growth rate of 3.3%. It was supported by stabilised key macro-economic indicators and easing inflationary pressures. While advanced economies faced notable headwinds, including subdued industrial output and tighter fiscal conditions, their collective growth stood at 1.8%. In contrast, Emerging Markets and Developing Economies (EMDEs) continued to play as the key drivers of global expansion, catalysed by strong domestic demand and sustained foreign investment flows, thereby, resulting in a stronger growth rate of 4.3%.

Inflationary pressures moderated during the year, with global inflation declining to an estimated 5.7% in the year 2024, aided by the stabilisation of international food and energy prices and easing labour market constraints. This enhanced consumer expenditure and business investor sentiment. Reflecting this macro-economic shift, Central Banks across major economies began transitioning from a prolonged phase of monetary tightening to a more accommodative policy stance, indicating strengthened economic fundamentals. Global trade volumes registered a significant rebound, growing by an estimated 3.4% in the year 2024, that was primarily driven by robust export activity from the US, China and key East Asian economies. However, the global trade landscape remains fragile. Trade tensions and geopolitical uncertainties, notably, the recent imposition of new tariff laws by the US pose ongoing risks to international trade stability, that could impact future growth trajectories.

The global economy is expected to sustain moderate growth over the forthcoming years, with the five year ahead forecast valued at 3.2%. In the near term, global growth is projected at 2.8% in the year 2025 and 3.0% in the year 2026, reflecting a cautious but steady recovery amidst evolving macro-economic conditions. Inflation is anticipated to maintain a downward trajectory, with global inflation expected to moderate to 4.3% in the year 2025 and further to 3.6% in the year 2026. While easing inflationary pressures and more accommodative monetary policies in advanced economies are expected to support growth, global trade will potentially face headwinds. Trade growth is projected to decrease to 1.7% in 2025, impacted primarily by growing tariff restrictions and the declining momentum of cyclical drivers that had recently supported goods trade.

Indian Economy

India demonstrated resilient economic performance in financial year 2024-25, maintaining stable growth amidst a complex and evolving global environment. The country registered a Gross Domestic Product (GDP) growth rate of 6.5%2 , driven by strong domestic demand, sustained infrastructure investment and the continued expansion of its urban middle class. Inflationary pressures eased significantly during the year, with consumer price inflation declining to 3.34% in March 2025.

This favourable inflation trajectory allowed the Reserve Bank of India (RBI) to adopt a more accommodative monetary policy stance, including a reduction in the repo rate to 6.00%. This was aimed at boosting liquidity, encouraging consumer spending and revitalising private sector investment. The Government of India reinforced its commitment to long-term growth via substantial public investment. The Union Budget for financial year 2024-25 allocated H11.11 lakh crore towards capital expenditure, indicating a sharper focus on infrastructure development and economic capacity building.

India has now become the 4th largest economy of the world, ahead of Japan. The countrys per capita income has also doubled since 2014. Looking ahead, Indias economic outlook remains positive, with GDP growth projected to hold steady at 6.5%4 in financial year 2025-26. This sustained momentum is predicted to be driven by strong domestic consumption and continued policy support from the government.

Inflation is anticipated to remain within a manageable range. The ongoing moderation in inflation provides the RBI with room for further monetary easing, which shall support credit growth and private sector investment. The governments sustained focus on infrastructure-led development is anticipated to be a key driver of growth. Strategic capital expenditure initiatives, with targeted policy reforms, are likely to enhance economic productivity and job creation. With strong macro-economic fundamentals, policy stability and a favourable demographic profile, India is well positioned to remain one of the fastest growing major economies globally.

Decreasing Inflation Rates in Financial Year 2024-25 Year on Year Inflation rate based on Consumer Price Index

Industry Overview

Energy Sector6

Indias energy sector, the sixth largest globally, continues to evolve rapidly to keep pace with the countrys expanding manufacturing base, urbanisation and agricultural demands. With the domestic energy consumption rising, the sector has witnessed substantial advancements across power generation, Transmission and Distribution (T&D), propelled by a strategic shift towards a more diverse and sustainable energy mix. At the end of the year 2024, Indias total installed power capacity stood at 466.26 Gigawatt (GW). While coal remains the dominant energy source, contributing significantly to energy security, there has been notable acceleration in the adoption of renewable energy, particularly solar power, which registered growth from 66.78 GW in 2022-23 to 100.33 GW in 2024-25. Wind energy too contributes significantly, accounting for 10.37% of total capacity, while hydropower has remained stable at 46.97 GW. Coal based capacity, simultaneously, has increased from 211.86 GW to 220.49 GW during the same period, highlighting its continued importance in the national energy framework. Indias energy strategy is rooted in diversification and sustainability, with growing emphasis on high value added manufacturing segments such as renewables, advanced battery technologies and low carbon supply chains. Government incentives and policy support along with technological advancements play a crucial role in facilitating this transition. As India seeks to strengthen its position in global energy markets, the focus will be on enhancing domestic production capabilities, expanding refining infrastructure and ensuring persistent supply chains. Significant investment will be required across oil and gas, electricity, steelmaking and clean energy sectors for meeting future demand, supporting economic growth and contributing to global decarbonisation efforts.

Indias power sources at the end of the year 2024

	Installed	Share (%)
Indias power sources at
	capacity	in power
the end of the year 2024
	(in GW)	generation
Coal	220.49	47.29
Hydro power	46.97	10.07
Nuclear	8.18	1.75
Oil and Gas	25.41	5.45
Small hydro	5.1	1.09
Solar energy	100.33	21.52
Wind	48.37	10.37
Bio power	11.41	2.45
Total	466.26	100

Defence Sector

The Global Military expenditure, which was at USD 2.718 trillion in the year 2024 experienced 9.4% year-on-year (YoY) growth and is likely to witness Compound Annual Growth Rate (CAGR) of more than 5% for next five years7.This growth can be attributed to the increasing usage of military drones, rising demand for attack and transport helicopters, low interest rates, higher spending on military equipment, the development of autonomous fighter jets, and increasing military expenditure across the globe. Further to this, the Asia-Pacific region remained one of the highest contributors to the global defence sector. With a total of USD 2.718 trillion, global defence spending experienced a 9.4% YoY growth, with the US continuing to lead in defence spending, followed by China8. This increase marks the highest in history since its peak during the Cold War in 1988. The global security environment can be characterised as dynamic, with persisting geopolitical tensions across the globe. Such inconsistencies in geopolitics are anticipated to persist, thereby driving sustained growth and innovation within the global industry as nations prioritise the modernisation and preparedness of their militaries. The global defence industry is anticipated to continue its growth, and in the year 2025, it is expected to attain a market size of USD 2.9 trillion. Moreover, this growth is likely to be supported by increasing military modernisation and rising internal and external security threats. North America is anticipated to make a significant contribution to the global defence industry. Alongside this, the Asia-Pacific region is expected to accelerate its investments in defence. Some of the key trends expected to shape the global industry during the forecast period include the use of 3D printing technology, the undertaking of strategic mergers and acquisitions, and the adoption of Artificial Intelligence (AI) in defence equipment. Indias defence manufacturing sector is rapidly emerging as a vital pillar of the countrys strategic and economic landscape. Once heavily reliant on imports, India is now steadily transitioning towards self-reliance in defence production, fuelled by an ambitious policy framework and strong government support. This evolution aligns with the broader national vision of "Atmanirbhar Bharat", reinforcing Indias status as a credible player in the global defence ecosystem. The transformation is reflected in the substantial hike in defence expenditure. The defence budget has grown from H2,53,346 crore in 2013-14 to H6,21,940.85 crore in 2024-25, underscoring the governments sustained commitment to enhancing national security, thereby, building domestic capabilities.

Central to this shift has been Indias defence manufacturing industrys growth. Initiatives such as "Make in India" and a series of policy reforms have actively encouraged domestic production, reduced dependency on foreign suppliers and opened the sector to private investment and strategic partnerships. These efforts aimed at both enhancing defence precaution and at creating an export oriented, innovation driven defence manufacturing base. India has set ambitious targets of achieving H3 lakh crore in defence production and H50,000 crore in exports by 2029. As the sector grows, it is anticipated to contribute significantly to job creation, skill development, including technological advancement, thereby, reinforcing the security and economic strength of the nation.

Infrastructure Sector9

The infrastructure sector continues to be crucial to Indias economic development, playing a pivotal role in driving GDP growth, thereby, fostering regional development and enabling job creation. Recognised as a key catalyst for national progress, the sector has witnessed sustained focus from the Government of India via heightened policy support, higher public expenditure and active facilitation of private sector participation.

In the Union Budget for financial year 2025-26, the government allocated H11.21 lakh crore towards capital expenditure, marking a continued commitment following the previous years allocation of H11.11 lakh crore. This strategic investment is aimed at enhancing Indias physical infrastructure across segments such as power, roads, bridges, urban infrastructure and water resources10.

India is well positioned to capitalise on emerging opportunities in the global infrastructure landscape, supported by a robust policy framework, favourable demographic trends, with the growing needs of its rapidly urbanising population. This momentum is further fuelled by the broader demand from emerging economies and the global shift towards sustainable and resilient infrastructure. As India works towards becoming a USD 5 trillion economy, infrastructure development remains a critical enabler. Increased expenditure in this sector has a multiplier effect on the economy, boosting productivity and laying the foundation for long term sustainable growth. The continued emphasis on world-class infrastructure creation reflects Indias broader economic vision.

Engineering and Construction Sector

The Engineering and Construction (E&C) industry plays a vital role in shaping the built environment via design, planning and execution of infrastructure and building projects. Being one of the worlds top 10 employers, the sector is under increasing pressure to meet the rising demands driven by rapid urbanisation, particularly across developing economies. The industry continues to navigate persistent challenges, including low productivity, tight profit margins, and a shortage of skilled labour. Despite these structural issues, the sector is undergoing transformation spurred by digital disruption, policy driven incentives and growing demand for sustainable infrastructure, specifically in clean energy11.

Global construction expenditure is projected to rise from USD 14.5 trillion in 2024 to USD 15.7 trillion in 202512, propelled by a strong pipeline in non-residential construction and a gradual recovery in the residential sector. The industrys shift towards digital tools, automation and sustainable building practices is predicted to be a key determinant of resilience and future growth. Indias E&C sector is key to the nations economic development. Currently ranked as the fourth largest construction market globally, India is on track to become the third largest, with a projected market value of USD 1.4 trillion in 202513. This growth is propelled by strong public investment, rapid urbanisation, rising demand for infrastructure and the governments emphasis on housing, transportation and energy development.

Contributing approximately 9% to Indias GDP, the construction industry is the largest employer after agriculture and household sectors. As India advances towards its vision of becoming a USD 5 trillion economy, the E&C industry is expected to register increased private sector participation, deployment of new-age construction technologies and stronger integration of sustainable practices, thereby, positioning it as a key driver of long term economic and infrastructure development.

Business Overview

Reliance Infrastructure Limited is a diversified infrastructure Company, primarily engaged in providing comprehensive E&C services across multiple sectors including power, transportation, urban infrastructure and defence. The Company has a strong track record in executing complex, large scale infrastructure projects and delivers end-to-end solutions from design and development to execution, operation and maintenance. Multiple projects are undertaken through Special Purpose Vehicles (SPVs), permitting focused execution and efficient management. In the urban mobility sector, Reliance Infrastructure successfully developed and continues to operate the Mumbai Metro Line One, a world-class mass transit system implemented on a Build, Own, Operate and Transfer (BOOT) model. This project has significantly eased congestion and improved connectivity in one of Indias most densely populated cities. The Company is further, involved in the operation and maintenance of Toll roads thereby, contributing to the development of modern transport ecosystems.

The Company maintains an active presence in the energy sector, with experience across the entire power value chain from generation and transmission to distribution and project management. Its broad capabilities enable participation in a wide range of energy infrastructure initiatives aimed at supporting sustainable development and energy security.

Reliance Infrastructure sustains in prioritising their delivery of high quality, technology driven infrastructure solutions, reinforcing its position as a key player in Indias infrastructure growth story.

Delhi Power Distribution Companies

The Companys two material subsidiaries, BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL), collectively referred to as the ‘Delhi Discoms, are responsible for electricity distribution in their respective licensed areas within the National Capital Territory of Delhi. BRPL serves approximately 31.89 lakh consumers across South and West Delhi, while BYPL caters to approximately 20.37 lakh consumers in East and Central Delhi.

In the financial year 2024-25, the Delhi Discoms reported an aggregate income of H22,017.01 crore, reflecting a 9.39% increase over the previous years H20,127.57 crore (excluding exceptional items). This growth was supported by a disciplined cost management, with operating expenses remaining within targets due to stringent budgetary controls and continuous monitoring of commercial and operational processes. Capital expenditure during the year stood at H1,330.58 crore, directed towards the upgradation, strengthening and modernisation of the power distribution infrastructure. Consequently, the aggregate net block, including Capital Work in Progress (CWIP), reached H8,640.75 crore.

The customer base of the Delhi Discoms grew by over 3.5% during the year. Despite this increase, both entities sustained delivering a high level of service reliability, maintaining system availability at over 99.9%. The Transmission and Distribution loss levels at the Delhi Discoms remained comparable to international benchmarks with BRPL achieving 6.63% and BYPL achieving 6.70% in the financial year 2024-25. Both BRPL and BYPL successfully met their respective peak power demands during the year, with BRPL handling 3,809 Megawatt (MW) and BYPL managing 1,882 MW, reaffirming their operational efficiency and infrastructure robustness.

Key Regulatory Highlights of Financial Year 2024 -25

While, Delhi Electricity Regulatory Commission (DERC) did not issue any Tariff Orders during the financial year 2024-25, a True-up Order up to the financial year 2020-21 was issued on July 19, 2024 which recognised a cumulative

Regulatory Asset of 21,413 crore for Delhi Discoms as of March 31, 2021. During the financial year 2023-24, tariffs were recovered based on the last Tariff Order dated September 30, 2021.

Resolving the long-pending issue of review of Capital Expenditure incurred, Capitalisation, and Physical Verification of Assets of Delhi Discoms for the period financial year 2004-05 to financial year 2015-16, DERC has approved the Gross Fixed Assets for this period and the impact has been incorporated in the True-up Order dated July 19, 2024.

Delhi Discoms have filed a Review Petition before DERC highlighting errors in the True-up Order and an Appeal before the Honble Appellate Tribunal for Electricity (APTEL) against the DERC Order dated July 19, 2024. The matters are currently sub judice before the respective forums.

The Honble Supreme Court (SC), vide its Order dated December 01, 2021, has dismissed six Civil Appeals filed by DERC and thereby, directing DERC to implement the Orders of the APTEL. DERC filed Compliance Affidavits, against which the Delhi Discoms filed Miscellaneous Applications. These were allowed by the SC vide Order dated December 15, 2022, reaffirming its direction to implement the APTEL Orders. Further, the SC, vide its Order dated October 18, 2022, allowed BSESs Appeals against the APTEL Order dated November 28, 2014, and held that DERC cannot reopen Tariff Orders during the True-up exercise or alter the methodology/principles of the original tariff determination. DERC, through its Order dated July 19, 2024, has only partially implemented the aforementioned directions of the SC. Consequently, Delhi Discoms have filed Contempt Petitions before the SC against DERC.

Tariff Appeals filed by Delhi Discoms against their respective Tariff Orders have been pending before APTEL since 2013. During financial year 2024-25, arguments in Appeals against the Tariff Orders dated July 13, 2013 and August 31, 2017, were completed and the matters were reserved for judgment.

Due to historically non-cost-reflective tariffs, there has been a significant accumulation of Regulatory Assets, resulting in severe financial stress for Delhi Discoms. Moreover, the Regulatory Assets recognised by DERC in its Order dated July 19, 2024, are yet to be liquidated. Additionally, several Orders of APTEL and the SC remain unimplemented by DERC. Delhi Discoms have raised, inter alia, the issue of timely liquidation of the approved Regulatory Asset before the SC. The Writ Petition, including connected matters, was heard in detail by the SC, and the judgment was reserved on February 20, 2025, regarding the creation and continuation of Regulatory Assets by DERC.

On March 29, 2023, DERC issued the Business Plan Regulations, 2023 (BPR-2023), applicable for the Control Period from financial year 2023-24 to financial year 2025-26. Delhi Discoms have filed a Writ Petition before the Honble Delhi High Court (DHC) challenging the BPR-2023, seeking a stay on the challenged provisions. The matter was listed multiple times before the Honble High Court during the last quarter but could not be heard due to paucity of time. Meanwhile, on January 30, 2025, the Central Electricity Authority, under Rule 20(6) of the Electricity Rules, issued Guidelines for Benchmarking Operations and Maintenance (O&M) norms for distribution companies, which have further been filed before the DHC. The BPR-2023, will require alignment with the said Rules. The matter is currently sub judice before the DHC.

The Delhi Power Utilities (Indraprastha Power Generation Co. Ltd. Pragati Power Corporation Ltd., and Delhi Transco Limited) have filed Petitions before DERC seeking adjudication of disputes with Delhi Discoms regarding the accounting of Late Payment Surcharge (LPSC) and recasting of their books of accounts by recognising LPSC in accordance with the applicable DERC Tariff Regulations. The matter was heard on May 07, 2025 and the Commission has reserved its judgment after hearing both parties.

Consumer Services Digitisation and Automation

WhatsApp Enterprises Service: Provides a host of services to customers such as update contact details, view payment receipt, acquire latest bill, complaint registration related with meter reading, duplicate bill, street light and so on, in both English and Hindi.

Connect Virtually Service: Allows customers to connect through video-call with BSES executives for query resolution by placing request via the website, mobile app, WhatsApp or toll-free number.

Call-back Service: Facilitates schedule of preferred call back date for support, reducing call wait times and abandonment rates.

Queue Management System at all divisions using Quick Response (QR) codes and token numbers to manage footfall efficiently, thereby, eliminating the need for paper tokens.

Enhancement of the Online New Connection Application on the website to improve usability and reduce rejection rates. Further, initiatives such as Artificial Intelligence (AI)/Machine Learning(ML) based commercial feasibility check, Optical Character Recognition (OCR) based document verification process and auto allocation of cases to Transmission Facilities Executives process are being undertaken to further reduce the timelines for release of new connections.

e-LECTRIC Rewards Programme: Loyalty programme that incentivises customers for timely bill payments digitally and e-bill subscriptions with redeemable points for discounts on shopping, healthcare, dining and other services.

Mobile App: Customers can avail a host of services such as new connection application, view and download 12 months bill, view billing and payment history, acquire options for Hindi or English language. Moreover, it has secure login protocols and robust encryption techniques that safeguard sensitive customer data.

Internal Consumer Grievance Redressal Cell (ICGRC) was launched to streamline complaint registration, tracking and resolution as per DERC Regulations 2024.

Customer Feedback: A structured feedback process via WhatsApp, customer help desks, website, mobile app and call centre, helps gather consumer insights and drive service improvements.

Payment Convenience: Digital payment options include third-party wallets, "pay now" button on e-bill, SMS links and quick pay service via the website and mobile app.

The 24x7 Multilingual Interactive Voice Response System (IVRS) based call centre handles queries related with billing, power supply, theft leads and metre issues, supported by a toll-free number.

Visually Impaired Service: Visually impaired customers can request Braille bills or call-back service through WhatsApp, the mobile app or the call centre.

Conversational AI bot: An AI voice bot has been deployed to handle "no supply" calls without human intervention, thereby, improving efficiency and reducing call redundancy.

AC and Fan Replacement Scheme: BSES Discoms are acting as a channel for replacement of old air conditioners and fans with BEE 5 star rated energy efficient ACs and fans in the license area.

Customer Engagement Initiatives

RWA engagement and outreach

Resident Welfare Association (RWA) meetings have been instrumental in directly addressing issues and collecting feedback, fostering collaboration on areas such as loss reduction, rooftop solar adoption, electric vehicles, net metering, and electrical safety.

Awareness through education

Awareness programs were conducted in schools to educate students and local communities about energy conservation, electrical safety, and responsible usage.

Digital-first communication approach

Consumer engagement was sustained through multiple platforms including email, SMS, the BSES website, mobile app, and official social media channels.

Strengthening digital presence

Discoms engaged with consumers actively on YouTube, Instagram, X, and Facebook, enhancing visibility and service awareness.

RWA WhatsApp Groups

Division-wise WhatsApp groups were created for RWAs to facilitate information sharing on digital services, safety initiatives, and renewable energy programs.

Samvad Newsletter

Distributed with monthly electricity bills, the Samvad newsletter kept consumers informed about safety tips, ongoing initiatives, and alerts against fraudulent activities.

Consumer Service Highlights i. Daily WhatsApp transactions exceeded 63,837 with monthly figures surpassed 13.89 lakh; the most used services include "no supply complaint" and "latest bill". ii. Over 24.44 lakh consumers registered on the "My Account" section of the BSES website. iii. The BSES mobile app crossed 27.66 lakh downloads, offering services such as instant bill payment, complaint registration, bill download, and more. iv. The Discoms maintained active social media engagement, responding to over 125 customer queries daily and building large followings across platforms. v. Community outreach through school energy programs and nukkad nataks helped promote awareness on digital utilities and safety protocols. vi. Regularly conducted RWA meets enabled collaboration on reducing losses and improving awareness of initiatives like electric mobility and net metering.

These initiatives demonstrate the Discoms ongoing focus on enhancing customer-centricity, service delivery, and awareness through digital, on-ground, and multi-channel engagement.

Defence Business

Reliance Defence Limited, a strategic pillar within the Companys diversified portfolio, is driving Indias vision of self-reliance in defence manufacturing through innovation, efficient execution and world-class partnerships. Aligned with the Governments "Make in India" and "Atmanirbhar Bharat" initiatives, the defence vertical remains focused on delivering advanced solutions that meet global standards and strengthen national security. Capitalizing on the growing opportunities in the defence sector amid shifting geopolitics, Reliance Defence operates across a broad spectrum of capabilities. These include aerospace, electronic warfare systems, artillery solutions, explosives and armoured vehicle upgrades. Backed by a legacy of engineering excellence, Reliance Defences facilities are equipped to serve both domestic and international defence requirements, reinforcing Indias stature as a reliable partner in global security.

Strategic Joint Ventures and Key Projects

Reliance Defence has developed an incredible ecosystem that has laid out a strong foundation for exponential growth. The key growth enablers includes strategic collaborations with global Original Equipment Manufacturer (OEMs) such as Dassault and Thales; co-development partnerships with Defence Research and Development Organisation (DRDO), including design and development of next-generation ammunition; advanced capabilities in explosives and propellants, targeting both domestic and global export markets; in-house talent pool of engineers and technicians with domain expertise across aerospace, electronics and armaments; world-class facilities aligned with international standards and export compliance norms. Current geo-political situation has resulted in large demand for military hardware. Major Europian Union (EU) countries are looking at increasing their defence spending from average of 2% of GDP to 3% of GDP. In case of large calibre ammunition, the key focus for Reliance Defence, the overseas demand is expected at H 4,00,000 crore over the next 10 years for purpose of restocking.

The Company has been allotted 1000 acres of Land in Watad Industrial Area of Ratnagiri, Maharashtra for setting up of the largest Integrated project for Manufacturing of Explosives, Ammunition and Small Arms. This project named as Dhirubhai Ambani Defence City (DADC) will be the largest Greenfield project in Defence Sector in India by any Private Sector company. Reliance Defence and D?sseldorf-based Rheinmetall AG have entered into a strategic partnership in the field of ammunition for supply of aggregates for medium & large caliber ammunition to Rheinmetall by Reliance Defence and for joint marketing activities for selected products. The strategic partnership will strengthen Indias defence manufacturing capabilities aligning with the Government of Indias flagship ‘Make in India and ‘Atmanirbhar Bharat initiatives. The cooperation gives Rheinmetall further access to important raw materials and secures not only its supply chains, also in the interests of its customers, but also creates further growth opportunities. In order to support this collaboration, Reliance Defence Ltd will set up a Greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra. The manufacturing facility, one of the largest in South Asia, will have an annual capacity to produce up to 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants. This new facility will help Reliance Defence achieve its objective of amongst top three Defence exporters in the country. The defence manufacturing complex will contribute in supporting Indias ambitious defence export target of H 50,000 crore by 2029. In India, the new state-of-the-art facility will make a significant contribution to supplying the countrys armed forces.

Dassault Reliance Aerospace Limited (DRAL)

Our joint venture with Dassault Aviation, France, has evolved into a centre of excellence for aerospace manufacturing. Located at the Dhirubhai Ambani Aerospace Park (DAAP), DRAL produces critical aero-structures for Falcon 2000 LXS (Long Range, with Short Field Performance and Enchanced Systems) business jets and subassemblies for Rafale fighter jets. Future expansion plans include setting up of a Final Assembly Line (FAL) for the Falcon 2000 LXS business jets. This will be the first such facility for Dassault Aviation outside of France and will support final assembly, integration and exports of Falcon 2000 LXS business jets, positioning India as a leading defence and aerospace exporter. The first Made in India Falcon is likely to rollout in 2028.

Thales Reliance Defence Systems Limited (TRDS)

In partnership with Thales Group, France, TRDS is engaged in the Assembly, Integration and Testing (AIT) of Airborne Active Electronically Scanned Array (AESA) Radars, Electronic Warfare Suites and Navigation Equipment. It also undertakes performance-based logistics and system upgrades for the Rafale aircraft fleet of the Indian Air Force. TRDS is pioneering the indigenization of critical radar components such as Trans Receiver (TR) Modules and Micro Modules in partnership with companies like Bharat Electronics Limited (BEL), making this the first instance of Indian-led integration of AESA airborne radar antennas. TRDS has also forayed into commercial Navigation Aids with multiple systems to serve both defence and civilian aviation needs.

Development of New Age Artillery Ammunition

Reliance Defence is the Development cum Production Partner (DcPP) for Armament Research & Development Establishment (ARDE) for co-development of new age 155 mm (millimetre) ammunition for the Indian Artillery. Multiple variants of 155 mm Bourrelet ammunition have been developed and are set to undergo final field trials before being approved for induction in the Army. Reliance Defence co-holds the Intellectual Property Right (IP) for the same and is looking forward to its capitalisation through foreign exports.

Integrated Ammunition, Explosives, Propellants and Small Arms Manufacturing Facility

Reliance Defence is set to develop an integrated ammunition, explosives, propellants and small arms manufacturing facility at DADC, Ratnagiri, Maharashtra. Spread over a 1000 acres, the DADC greenfield campus will produce 155mm artillery ammunition: high-explosive, smoke, illumination and cargo rounds; military-grade explosives like Trinitrotoluene (TNT), Research Department Explosive (RDX) and High Melting Explosive (HMX); single-base, double-base and triple-base propellants; commercial explosives; precision firearms with in-house designs that guarantee high-performance.

Mumbai Metro One Private Limited

The Mumbai Metro Line-1 project, covering the Versova-Andheri-Ghatkopar corridor, was awarded by the Mumbai Metropolitan Region Development Authority (MMRDA) through a global competitive bidding process under the Public-Private Partnership (PPP) framework. The project was granted to a consortium led by the Company for a 35-year period, inclusive of the construction phase. Operations commenced on 8th June 2014.

Implemented and operated by Mumbai Metro One Private Limited (MMOPL), the project marked a significant milestone in June 2024 by completing ten years of service. Over the past decade, Mumbai Metro Line-1 has played a transformative role in enhancing the citys public transport infrastructure, offering safe, efficient, and reliable urban mobility.

Operational Excellence

Unmatched Reliability

MMOPL exemplifies operational excellence through its unwavering commitment to reliability and punctuality. Achieving 100% train availability and maintaining an on-time performance exceeding 99%, MMOPL has set a benchmark in urban mass transit operations. By offering dependable service, MMOPL plays a critical role in alleviating traffic congestion and reducing commute times across one of Indias most densely populated urban corridors.

Customer-Focused Innovation

MMOPL remains at the forefront of passenger convenience by embracing a customer-first approach and leveraging smart mobility solutions. Further enriching the commuter journey, MMOPL had introduced WhatsApp enabled e-ticketing, allowing passengers to access and validate tickets directly through a widely used messaging platform. These innovations underscore MMOPLs commitment to enhancing commuter ease, digital accessibility, and service efficiency, redefining what a modern, passenger-centric metro system should be.

Unparalleled Ridership and Network Synergy

MMOPL continues to lead the nations metro systems with exceptional ridership milestones, having served over 1,101 million passengers as of April 30, 2025. This outstanding figure cements Mumbai Metro Line-1s status as the busiest metro corridor in India.

Notably, daily ridership has not only rebounded post-pandemic but has also exceeded pre-COVID levels, driven by improved accessibility and strategic integration with the expanding metro ecosystem, including Lines 2A, 7, and Line 3. Line-1s critical interchanges at Ghatkopar and Andheri, connecting with Mumbais suburban rail network, offer commuters a seamless, time-saving journey. This interconnected urban transit infrastructure is helping redefine Mumbais public transportation landscape, delivering faster, more efficient, and accessible mobility across the city.

Financial Sustainability and Growth

Cost Optimization

MMOPL fosters a culture of in-house expertise, developing a team of domain experts who handle maintenance activities. This reduces reliance on external service providers, leading to optimised O&M costs.

Unlocking Non-Fare Revenue Potential

Recognizing the potential beyond ticketing, MMOPL has transformed stations into vibrant destinations. Strategic partnerships with major brands like McDonalds, KFC, Starbucks and Apollo Pharmacy create a more pleasant and convenient travel experience for commuters. Additionally, initiatives like station branding rights and advertising partnerships generate significant non-fare revenue streams, contributing to the projects overall financial health.

Innovation and Social Responsibility

Technological Advancement

MMOPL actively participates in the National Common Mobility Card (NCMC) program, promoting a unified and interoperable payment system across various modes of public transport. This not only simplifies travel for commuters but also streamlines data collection and analysis for better service planning.

Community Connect and Social Engagement

MMOPL goes beyond just providing transport by actively engaging with the public through social media platforms. Celebrating local heroes and fostering a sense of community ownership strengthens the bond between Mumbaikars and Mumbai Metro Line-1.

Green Initiatives and Sustainability

MMOPL prioritises environmental responsibility through eco- friendly practices like rooftop solar power generation, rainwater harvesting and recycled water usage for train cleaning. These initiatives not only reduce the projects carbon footprint but also contribute to a more sustainable Mumbai.

Looking Ahead

MMOPL remains dedicated to exceeding expectations and further enhancing Mumbais public transport infrastructure. By continually innovating, optimizing operations, and prioritizing customer experience, MMOPL aims to solidify Line-1 as a vital artery for Mumbais growth and a model for successful public-private partnerships in India. The company is well-positioned to play a key role in shaping Mumbais future as a sustainable and well connected megacity.

Roads Projects

The Roads Business portfolio comprises seven operational BOT (Build, Operate and Transfer) toll road projects, covering a tolling length of 644.26 Km (kilometres). All road projects are currently revenue operational and are strategically located along high- traffic-density corridors, primarily in urban-centric areas across four states in India.

There are 14 toll plazas operating in 7 operational toll roads with an average daily traffic of 2.7 lakh vehicles and an average toll collection of H 2.62 crore per day. A summary of the operational toll road projects is provided below:

a. NK Toll Road Limited

NK Toll Road is engaged in widening of 2-lane to 4-lane portion of Namakkal Bypass to Karur Bypass covering 41.4 Km on the NH 7 in Tamil Nadu, along with improvement, operation and maintenance of the yover in Namakkal

BypassonaBOTbasis.Theprojectcommencedcommercial operations in August 2009 and is currently debt free.

b. DS Toll Road Limited

The project stretch of 53 Km with 4-lane dual carriageway of 15 stretches on BOT and annuity basis, which included, inter alia, the package for design, construction, development, finance, operation and maintenance.

Stretching from the Dindigul bypass to Samayanallore on NH-7 in Tamil Nadu, it is operational since September 2009 and is currently debt free.

c. TD Toll Road Private Limited

The project stretch of 87 Km long 4 lane NH 45 road is operational since January 2012, providing connectivity to Trichy and Dindigul in Tamil Nadu. This SPV is under Corporate Insolvency Resolution Process (CIRP).

d. TK Toll Road Private Limited

This project envisioned for strengthening and maintaining the existing carriageway on the Trichy - Karur section of the NH67, covers 64 Km in Tamil Nadu, on a BOT basis. The project commenced commercial operations in February 2014.

e. SU Toll Road Private Limited

This project was envisaged to strengthen and maintain the existing carriageway for a stretch of 136 Km on the Salem – Ulundurpet section of NH 68 in the State of Tamil Nadu and to widen the roads from two to four lanes, on a BOT basis. The project commenced commercial operations in July 2012 and 3rd toll plaza has been operating since September 2013.

f. GF Toll Road Private Limited

The project was for upgradation of 4 sections of the existing Gurgaon Faridabad road, covering a total stretch of 66 Km.

This road contains four toll plazas and is operational since June 2012. This SPV is under CIRP.

g. HK Toll Road Private Limited

The project was envisaged for strengthening and widening the 60 Km stretch between Hosur and Krishnagiri on NH-7 from existing 4-lane to 6-lane as Design, Build, Finance, Operate and Transfer (DBFOT) pattern in Tamil Nadu. This project commenced operations in June 2011, however, has been illegally terminated by the National Highways Authority of India (NHAI) on January 22, 2024. Arbitration proceedings are underway to restore operations.

h. PS Toll Road Private Limited

This project was envisaged to expand the Pune-Satara section of the NH-4, on a DBFOT basis, which in turn forms part of the Golden Quadrilateral, in Maharashtra. The project was set up with an objective to design, build and operate 140.35 Km long 6 lane between Pune and Satara in Maharashtra. Tolling on the project started in October 2010. The Provisional Completion Certificate (PCC) was obtained at the end of April 2022.

E&C Sector

The E&C Division delivers integrated services in design, engineering, procurement and project management for turnkey infrastructure projects. These span across coal-based thermal, gas-powered and nuclear power plants, including metro rail, roads and railway systems. Over the past two decades, the Division has executed a wide array of greenfield projects in medium, large and mega categories, displaying strong capabilities in complex project delivery. During the year, efforts remained focused on the timely and efficient execution of existing contracts while maintaining high standards of quality and safety.

Major Projects currently under execution by the E&C Division a. The Company is carrying out an E&C contract for common services systems, structures and components at Unit 3 and 4 of Kudankulam Nuclear Power Project being set-up by Nuclear Power Corporation of India Limited (NPCIL) wherein the Project activities are at an advanced stage and financial progress of more than 76% has been achieved as on March 31, 2025. b. The Company is executing E&C contract for elevated viaduct and Stations for Mumbai Metro Rail Project

- Packages 8, 10 and 12 which are part of Wadala – Ghatkopar – Thane – Kasarvadawali Metro which is being carried out as a joint venture with WeBuildSpA. c. The Company is executing an E&C order from NHAI for Six Laning of Highway from Bihar-Jharkhand Border (Chordaha) to Gorhar section of NH-2 in the state of Jharkhand covering a length of 71.285 km. The project highway comprises three yovers and two major bridges and the plantation of around 15,500 trees. This project highway includes up-gradation of existing facilities, construction of new corridors for ensuring safe, smooth and uninterrupted flow of traffic. This project has achieved overall 68.65% progress till date March 31, 2025. d. The Company, in a joint venture with CAI-Ukraine, is executing an E&C order from the Ministry of Road Transport and Highways for Rehabilitation and Upgradation of Kashedi Ghat section of NH-17 (New NH-66) to four lanes with paved shoulders including construction of twin tube six-lane tunnel in Maharashtra on E&C Mode. This section creates an accident-free and safe flow of traffic on highway. Overall, 97.42% of progress has been achieved till March 31, 2025.

Reliance Power Limited

The Company is a promoter of Reliance Power Limited (Reliance Power), an associate of the Company. Reliance Power has one of the largest portfolio of private power generation and resources under development in India. Its portfolio comprises of multiple sources of power generation - thermal, solar and hydroelectric.

During the financial year 2024-25, the operating plants of the Reliance Power, set up through its subsidiary companies, performed exceedingly well on efficiency parameters. Reliance Powers Sasan Ultra Mega Power Plant (UMPP) (Capacity 3,960 MW) continued its impressive performance with generation of 31,425 Million Units (MUs) with Plant Load Factor (PLF) of 90.6% which demonstrates its efficiency and reliability. Compared to the all India average PLF of approximately 69%, Sasan UMPP is operating at an exceptional level. The Sasan UMPP stands as one of the largest integrated coal-based power plants globally. It is complemented by the Moher and Moher Amlohri Extension captive coal mines, which fulfill the plants fuel requirements. In the past year, the Sasan Coal Mine efficiently produced 18.12 million MT of coal and removed 47 million BCM of overburden. The Rosa Thermal Power Plant, with a capacity of 1,200 MW, achieved a total generation of 7,403 MUs during the current fiscal year, demonstrating consistent year-on-year performance. The Solar Photovoltaic (PV) plant, with a capacity of 40 MW, utilizing photovoltaic panels to directly convert sunlight into electricity, generated 26.25 MUs during the year. Further, the 100 MW Concentrated Solar Power (CSP) plant, concentrating solar energy using mirrors to heat water to generate steam to drive turbines, produced 18.37 MUs during the year and contributed to cleaner and greener energy production.

The Butibori Power Project, a coal-based thermal plant with a capacity of 600 MW, was not in operation. Further, the lenders of the Butibori Project have enforced the pledge on the entire share capital of the Project Company namely Vidarbha Industries Power Limited (VIPL), leading to takeover of the management and control of VIPL.

Reliance Bangladesh LNG and Power Limited (RBLPL) is currently establishing a 718 MW (net) power plant at Meghnaghat, near Dhaka in Bangladesh. This project is being executed together with strategic partner JERA Power International (Netherlands), a subsidiary of JERA Co. Inc. Japan. The temporary gas pipeline connection was completed in February 2024, and the project is anticipated to commence commercial operations by September 2025.

As a step to transit toward renewable energy space, Reliance NU Suntech Private Limited, a wholly owned subsidiary of Reliance Power has signed a Power Purchase Agreement with Solar Energy Corporation of India (SECI) to supply 930 MW of solar power integrated with 465 MW/1,860 MWh Battery Energy

Storage System (BESS). To achieve the contracted capacity of 930 MW, the project will deploy more than 1,700 MWp of installed solar generation capacity. It marks a significant milestone in the Reliance Powers strategic vision to shift towards cleaner energy sources and play a pivotal role in shaping the countrys sustainable energy future.

Financial Overview

The Companys total consolidated income including regulatory income, for the financial year ended March 31, 2025 was H 30,425 crore (USD 3.56 billion) as compared to 23,234 crore (USD 2.79 billion) in the previous financial year. The total income includes earnings from sale of electrical energy of H 28,121 crore (USD 3.29 billion) as compared to H 20,660 crore (USD 2.48 billion) in the previous financial year.

During the year, interest expenditure decreased to H 1,784 crore (USD 208 million) as compared to H 2,310 crore (USD 277 million) in the previous year. The capital expenditure during the year was H 1,500 crore (USD 175 million), incurred primarily on modernizing and strengthening of the transmission and distribution network as also on road projects.

The total Plant Property and Equipment as at March 31, 2025 stood at H 9,485 crore (USD 1.11 billion).

In order to optimise shareholder value, the Company continues to focus on in-house opportunities as well as selective large external projects for its E&C and Contracts Division (the E&C Division). The E&C Division has a total order book position of H 899.73 crore (USD 105 million). The Companys consolidated net worth was H 14,287 crore (USD 1.67 billion).

Financial Ratios

The details of significant changes amounting to change of 25% or more as compared to the immediately previous financial year in Key Financial Ratios and Return on Networth along with detailed explanations thereof are given in Note No. 52 to the standalone financial statement.

Information Technology

Reliance Groups strong commitment to enhancing cybersecurity and adopting modern technology was honoured by the "Excellence in Technology Implementation - Automated IT Management and Cyber Security" award at the CIO Awards for Enterprise IT Excellence by The Economic Times in February 2025. This award highlights the Groups success in building secure and scalable IT systems.

During the year, the Group implemented several advanced cybersecurity measures to strengthen its digital infrastructure. A key initiative was the introduction of External Attack Surface Management (EASM) to proactively scan internet-facing systems for vulnerabilities. This was complemented by Dark

Web monitoring to detect any exposure of sensitive data or credentials, enabling timely mitigation actions. To enhance real-time threat detection and response, a dedicated 24x7 Security Operations Centre (SOC) was established. The SOC leverages advanced tools and threat intelligence to monitor and address security incidents promptly, thereby reducing risk and ensuring a resilient security posture. Additionally, the Group adopted an AI-driven Zero Trust security model, which operates on the principle that no user or device is inherently trusted. This model includes features such as continuous authentication, behavioural analysis, smart access controls and automated threat response—collectively reinforcing the Groups commitment to maintaining a robust and adaptive cybersecurity framework. One of the key initiatives undertaken during the year was the roll-out of a secure voice communication system compatible with mobile devices. This solution enables employees to conduct encrypted business conversations from any location, ensuring compliance with stringent privacy and security standards.

As a part of its endpoint security strategy, Reliance Group has deployed Apple MacBook replacing Windows laptops, to ensure security and better protection against malware and ransomware. All systems have also been secured with Sophos antivirus. In terms of infrastructure, the Group has upgraded its network with Next Generation Firewalls (NGFWs) that include High Availability (HA) and Intrusion Detection and Prevention Systems (IDS/IPS). These tools help detect and block threats in real time. A strong backup and its Disaster Recovery (DR) system have been instrumental to protect important data and ensure it can be quick restoration.

Human Resource

Reliance Infrastructure is committed to transformation by building a robust, diverse and future-ready workforce. The Company has implemented strategic steps to ensure that its people remain at the heart of every initiative. In a year of change and growth, the Company persistently served its nationwide clientele, with a powerful workforce of around 21,000 engaged directly and indirectly. This year marked a significant phase in the Companys transformation journey. The Company advanced its organizational agility by streamlining structures, embracing digital technologies and reinforcing a value-driven culture. While adapting to the New Energy landscape, Human Resource (HR) has supported the business in acquiring and developing the critical skills necessary for growth in sectors of renewable energy, sustainability and decarbonisation initiatives. The Company launched specialised recruitment campaigns and tailored learning programs to build a future-ready workforce. In order to attract and retain talent, the Company has recalibrated its employer value proposition. Employee Stock Option Programme was introduced as a tool to attract and retain talent and create an "Employee Ownership Culture". Retention strategies focusing on internal mobility, personalised career paths and mentorship programs contribute to ensure loyalty and purpose among employees.

Employee wellbeing remains a top priority with enhanced health and safety protocols, mental health awareness campaigns and expanded access to counselling and wellness resources. To foster a continuous learning culture, we embedded learning into everyday work. The Companys learning academy (MOULD) and digital platforms provided curated, on-demand content aligned with personal and professional growth goals. Over the past year, "HR Chronicle" the monthly HR Tabloid has captured the many dimensions of its unique culture, through stories of connect and engagement. The various HR initiatives be it "Mental Wellness Programme", "Leadership Workshops" or "Technical brainstorming Sessions" have reinforced its unified agenda of "One Team, One Family"; thereby promoting a culture of connect, commitment and converge.

Corporate Social Responsibility (CSR)

Reliance Group is focused on its endeavour to bring about a tangible change in society through its various CSR initiatives, aimedatachievingequitabledevelopment.TheCSRinterventions of the group focuses on key areas covering Education, Healthcare and Rural Transformation including development of infrastructure facilities, skill building and promotion of sustainable livelihood, improving the socioeconomic status of women and the youth and Environment and sanitation.

A few of the significant CSR interventions and initiatives for the year are highlighted below:

Rural Transformation and Women Empowerment

Handloom Incubation Centre (Thread of Trust)

Under the Thread of Trust initiative, 82 women received skill development training in handloom and handicrafts. They were also provided platforms to showcase and sell products like shawls and bed sheets, empowering them to earn a sustainable livelihood and lead a dignified life.

Sashakt Beti - Empowering Female Students of Delhi University

To support higher education, the Company provided 300 laptops and 454 tablets to female students of Delhi University. This initiative is helping bridge the digital divide, empowering students with access to essential learning tools, thereby enabling them to compete on equal footing in todays technology-driven academic environment.

Self-Defence Training for Girls

In partnership with the PCS Foundation a professional agency run by a former SPG commando, self-defence training was provided to over 1,200 girls across seven schools, covering threat awareness, situational analysis and personal safety. Certificates were awarded upon completion. Among other aspects, these self defence trainings also sensitised girl students on Possible Threats; Situational Analysis; Good Touch/Bad Touch and Self Defence. Certificates were also distributed to these students.

Menstrual Hygiene Project

The Company supported hygiene awareness by distributing 50,768 sanitary pads via Self Help Groups (SHGs), installing vending machines in six hospitals and promoting sanitation, education and health outcomes for girls. The project aims to reduce waterborne diseases through improved sanitation and hygiene education, decrease in school dropout rates among girls.

Vocational Training

Over 2,200 youth, including persons with disabilities, were trained in computer skills, beauty culture and tailoring, enhancing employability among underserved communities.

Educational Initiatives

Effective Education for Government School Students

Mini Science Centres and STEM (Science, Technology, Engineering and Mathematics) Labs were set up in 15 Delhi Government schools, benefiting around 19,789 students. Six AI-enabled digital classrooms were also established at seven Dr. Ambedkar Schools, empowering nearly 2,000 students with tech-based learning.

Personality Development

Basketball academies in IP Extension, Patparganj and Begumpur trained over 540 boys and girls, encouraging discipline, teamwork and physical fitness through structured sports engagement.

Personality Development of young girls and boys through sports

Under this Project, the Company has established a Basketball Academy at IP Extension to install a sense of purpose in young minds and to create champions out of them. The academy at Patparganj runs two training batches daily, with around 53 boys and girls actively participating. Additionally, at the BSES Basketball Academy located at Sarvodaya Co-ed Vidyalaya, Begumpur, basketball training is being provided to over 490 boys and girls.

SASHAKT Scholarship

The fifth edition of the SASHAKT Scholarship supported 178 meritorious students, selected from 1,180 applications, with financial aid of up to H30,000 to pursue their academic goals.

Supporting Digital and Public Libraries

The Company enabled digital learning through the Delhi Police Public Digital Library, digitising 874 rare manuscripts and launched the BYPL Gyan Kendra to promote inclusive community learning.

Sports Promotion, Fitness and Yoga

Football training and support were extended to youth in West Delhi, while 66 yoga sessions benefited 2,710 individuals, promoting fitness among all.

Skill Development Program

The Company in collaboration with the NSDC (National Skill Development Corporation), has launched a skill development program aimed at training 1,600 marginalized youth and women across four different locations in Delhi. This program will provide vocational training in garment making, digital marketing, food product handling and other job oriented programs.

Health

Old Age Homes for Senior Citizens

BSES has established an Old Age Home in Shri Niwas Puri, South Delhi, providing accommodation, meals, medicines, counselling, physiotherapy and nursing services to 36 senior citizens.

Tobacco De-Addiction Camps

Five tobacco de-addiction camps were conducted in Delhi, with 403 participants, reinforcing the Companys commitment to community health and well-being.

Eye Care Screening Camps

The Company organised 30 eye camps, delivering 6,700 OPD consultations and distributing 4,300 eyeglasses, thereby benefiting thousands of individuals.

Supporting the Differently-Abled

Assistive devices were provided to over 65 elderly and specially-abled individuals to improve their quality of life.

Supporting Government and Charitable Hospitals

Medical equipment donations under the Suraksha program and menstrual hygiene initiatives were instrumental in supporting healthcare infrastructure.

School Health Clinics

School Health Clinics were launched, benefiting more than 20,000 students by addressing their physical and mental well-being.

General Health Camp

In collaboration with a government primary health centre, the Company organized a health camp for commuters and local staff, promoting community health.

Acquisition of Medical Equipment and Establishment of parks, Shades, Turf at VMMC/ Safdarjung Hospital for Doctors, patients and their attendants For promoting health of the medical staff, a multi utility sports turf is being setup within the Safdarjung hospital premises.

Animal Birth Control (ABC) & Anti-Rabies Vaccination (ARV) for street dogs and cats

To align with the Animal Birth Control Rules 2023 and National Action Plan for Rabies Elimination by 2030, this year BSES Discoms have partnered to spay/neuter and vaccinate 3300 stray dogs and 300 cats in Delhi.

Environment and Sustainability

Donation of E-Buses to AIIMS

BRPL delivered 23 electric buses to All India Institute of Medical Sciences (AIIMS) for internal campus transportation, supporting low-emission mobility for patients, attendants and staff, while helping reduce carbon emissions.

Smart Energy Learning Centre

The Company supported the establishment of the Smart Energy Learning Centre at Dhirubhai Ambani Institute of Information and Communication Technology (DA-IICT) Ahmedabad, a state-of-the-art facility designed to promote research and innovation in sustainable energy solutions.

Tree Plantation Drives

Over 64,600 saplings were planted across various locations including Central Ridge, Ghazipur and Anand Vihar flyovers, Border Security Force (BSF) and Indo-Tibetan Border Police (ITBP) campuses, government schools, Resident Welfare Associations (RWAs) and community spaces, reinforcing efforts toward increasing Delhis green cover.

Maintenance of Delhi Development Authority (DDA) Ecological Parks

In order to support environment conservation and increase green cover in Delhi, BSES Discoms have undertaken two projects for the maintenance of ecological parks of DDA – Kalindi Aviral and Park near Old Railway Bridge to ITO Barrage on Eastern Bank, Asita East Phase -1 which will have a long term impact on the environment.

Energy Conservation Awareness in Schools

In collaboration with the Energy and Resources Institute (TERI), BSES Discoms reached approximately 18,193 students and 644 teachers across 100 Municipal Corporation of Delhi (MCD) schools in East Delhi, spreading education on energy conservation, fostering sustainable habits from a young age.

Cool Roof Cool Delhi Project

BYPL applied white reflective paint to over 150,700 sq. ft. of rooftops in public areas such as Delhi University North Campus and police stations, helping mitigate the urban heat island effect and promote energy efficiency.

Green Crematoriums

BRPL supported the installation and maintenance of eco-friendly electric furnaces at cremation facilities, including pet crematoria, contributing to cleaner and more sustainable end-of-life services.

Water Sanitation and Hygiene

Recognizing that sanitation, clean water and hygiene are fundamental to public health, BRPL undertook initiatives to support safe drinking water and waste disposal in underserved communities. As part of this effort, BRPL donated five Water ATMs in locations including Nangloi, Tagore Garden, Sangam Vihar ‘I Block, Sangam Vihar ‘K Block and Vikaspuri. These Water ATMs are expected to provide access to safe drinking water to approximately 10,000 people, contributing to improved community health and well-being.

Key Awards and Achievements

The group performance of the Reliance Infra Limited has been recognised and appreciated through various awards received by its businesses. BRPL was honoured with the following awards:

Golden Peacock HR Excellence National Quality for the adoption of quality framework and continuous process improvement [Institute of Directors (IOD)]

Best Power Distribution Company Utility Award [Independent Power Producers Association of India (IPPAI) Central Board of Irrigation and Power (CBIP)]

Smart Technology Electricity Distribution [India Smart Grid Forum (ISGF)]

Par Excellence Award 2024 [Confederation of Indian Industry (CII)]

Prithvi Award 2024 [ESC Research Foundation (ERF)]

National Gaurav Award 2024 [Indian Brave Hearts (IBH)]

OHS&E Service Excellence Award 2024 [World Safety Organisation (WSO), India]

Chapter Convention on Quality Concepts (CCQC) Award and National Convention on Quality Concepts (NCQC) Award 2024 [Quality Circle Forum of India(QCFI)]

Economic Times Awards for Corporate Excellence (ET) HR Employee Experience Award (ET Award Forum)

International Convention for Quality Control Circles (ICQCC) 2024

The Great Place to Work Certification (Great Place to Work)

Best EV Award (IPPAI) Best Innovation Award 2024 (IPPAI) BYPL has been endowed with the following awards

High-Performing Discom Recognition by the Central Electricity Authority (CEA), Ministry of Power, Government of India (GOI).

Greentech Workplace Safety Award 2024 by the Greentech Foundation.

Five Gold Awards at ICQCC 2024 for QC/5S/Kaizen Projects

Seven Par Excellence Awards (Highest category of recognition) and two Excellence Awards (Exemplary performance) at NCQC 2024 for QC/5S/Kaizen Projects by QCFI).

11 "Gold Award" at CCQC 2024 for QC/5S/Kaizen Projects by QCFI.

ICC Innovation with Impact Award 2024 by the Indian Chamber of Commerce (ICC).

Prithvi Award 2024 [ESG Research Foundation (ERF)].

The Great Place to Work Certification (Great Place to Work).

MMOPL has won the following awards

Award of Excellence in the category of Metro Rail with the Best Passenger Services and Satisfaction by GOI Ministry of Housing and Urban Affairs (MOHUA) 2024

Gold iNFHRA Award for Excellence in Transportation Innovation 2024

Bronze iNFHRA Award for Excellence in Green Commuting 2024

Excellence in Continuous Learning Award (The Future of L&D Conference & Awards) 2024

Best Facilities Management (FM) Sustainable Workplace Model (CREFM Masterstroke Awards) 2024.

Urban Infra Commuter Centric MRTS of the Year 2024 (Urban Infra Awards) 2024.

Risks and Concerns

Power Distribution Business

Consumer tariffs for electricity distribution are regulated by the State Electricity Regulatory Commissions (SERCs). Any adverse changes in the tariff structure or delays in tariff approvals could impact the financial performance of the Delhi Discoms.

Defence Business

The defence sector is characterised by long developmental periods, high capital investment requirements and a strong reliance on government procurement. The industry is highly regulated by the requirement of extensive compliance for setting up and operating facilities, as well as for the manufacture and sale of defence products. Furthermore, global competition, evolving geopolitical dynamics and complex execution challenges add to the overall risk profile of the sector, potentially impacting timelines, margins and scalability.

The Mumbai Metro Project

Metro project, is currently operational. However, it is exposed to a range of risks broadly classified into financial, legal and operational. However, potential risks include the possibility of actual traffic falling short of projections due to factors such as an economic slowdown or unforeseen external events. Such deviations could impact overall project returns.

Roads Business

All toll road projects are currently revenue operational. However, potential risks include the possibility of actual traffic falling short of projections due to factors such as an economic slowdown or unforeseen external events. Such deviations could impact toll collections and overall project returns.

E&C Business

Most of the existing projects are either nearing completion or have already been completed. This poses a potential business continuity risk till Company secures new contracts.

Financial risk

Financial risk is the risk where project cash flows might be insufficient to cover debt service and then pay an adequate return on sponsor equity. Financial risks are best borne by the private sector but a substantial government risk sharing is required either through viability gap funding (VGF), revenue or debt guarantees or through participation by state or multilateral development institutions.

Legal risk

Legal risks stem from weak implementation of regulatory commitments built into the contracts and the laws or other legal instruments that are relevant to the value of the transactions as it was originally assessed.

Operating risk

Operating risks are the risks that emerge at the time of the operations of the project. It can also involve the risks like force majeure risks that are beyond the control of both the public and private partners, such as fire or earthquakes, industrial disturbances that impair the projects ability to earn revenues. Sometimes insurance is available for catastrophic risks but generally public sector Companies face need to restructure the project if such disaster occurs.

Risk Management Framework and Internal Control Systems

The Company has a defined Risk Management Policy applicable to all businesses of the Company. This helps in identifying, assessing and mitigating the risk that could impact the Companys performance and achievement of its business objectives. The risks are reviewed on an ongoing basis by respective business heads and functional heads across the organization. The Risk Management Committee of the Board consisting of Independent Directors and few senior managerial personnel, on a quarterly basis, the Risk Management Committee independently reviews all identified major risks and new risks, if any and assess the status of mitigation measures/plan. The internal financial controls for all the significant processes have been identified based on the risk evaluation in the business process and same have been embedded in the business processes. These processes and controls have been documented. Professional internal audit firms review the systems and processes of the Company and provide independent and professional opinion on the internal control systems. The Audit Committee of the Board reviews the internal audit reports, adequacy of internal controls and risk management framework periodically. These systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.

Industry Structure and Development, Opportunities and Threats

Power Distribution business

The power distribution sector in India is undergoing a transformation, driven by policy reforms, technological integration and a growing emphasis on service reliability and consumer engagement. The Revamped Distribution Sector Scheme (RDSS) and ongoing regulatory focus on reducing Aggregate Technical and Commercial (AT&C) losses are reshaping the industry structure. There is a clear shift towards digitalisation, smart metering, and consumer-centric models, offering opportunities for operational efficiency, data-driven decision-making and improved financial sustainability. The sector also sees potential in distributed energy resources, rooftop solar integration and demand response solutions. However, challenges such as high subsidy dependence, delayed tariff revisions and legacy infrastructure constraints continue to impact discoms financial health. Addressing these structural issues while leveraging digital and regulatory advancements remains key to long-term sectoral stability and growth.

Defence business

Indias defence sector continues to evolve with increased focus on self-reliance and indigenisation, driven by policy initiatives such as the Defence Acquisition Procedure (DAP) and the "Atmanirbhar Bharat Abhiyan". The governments consistent push for domestic manufacturing, enhanced FDI limits and expanding defence budget have opened up significant opportunities for private players in areas such as electronics, unmanned systems, aerospace components and precision engineering. The sector also benefits from long-term visibility owing to multi-year procurement cycles and strategic partnerships with global OEMs. However, challenges remain in the form of prolonged procurement timelines, regulatory complexities and intense competition from established Public Sector Undertakings (PSUs) and foreign entities. Despite these, the underlying demand and policy support provide a strong foundation for sustained growth in the private defence manufacturing space.

Mumbai Metro Business

Mumbai Metro continues to be one of the most efficient and widely used modes of urban transport in the city, second only to the Mumbai suburban railway. The business is well-positioned for future growth with the ongoing expansion of the metro network.

• Expanding Network and Ridership Potential

Despite the availability of alternate transport modes, Mumbai Metro plays a vital role in local transit. The expansion of the metro network—with operational lines such as Line 2A, 7, and the partially operational Line 3, and upcoming lines including Line 2B, 4, and 9—is expected to enhance connectivity and cross-feed ridership across the system, leading to increased commuter volumes.

• Improved Last Mile Connectivity

To strengthen last mile access, Mumbai Metro has collaborated with bus services and aligned its timetable with other modes of public transport to ensure better synchronization and commuter convenience.

• Adoption of National Common Mobility Card (NCMC)

The business has enabled the use of NCMC for fare payment, facilitating seamless and interoperable travel across various transit systems within Mumbai and nationwide, thereby improving travel convenience for passengers.

.

Roads Business

Indias roads infrastructure sector is poised for strong growth, backed by rising vehicular traffic and ongoing investments in national highway development.

• Growth in Vehicle Sales

The country witnessed record-high vehicle sales in financial year 2024-25, indicating a positive outlook for passenger traffic on highways, particularly in the car segment.

Category14	Units sold (finacial year 25)	Units sold (finacial year 24)	Growth (in %)
Two-wheeler	1,88,77,812	1,75,27,115	8%
Three-wheeler	12,20,981	11,67,986	5%
Passenger Vehicles	41,53,432	39,60,602	5%
Commercial Vehicles	10,08,623	10,10,324	0%
Tractor	8,83,095	8,92,410	-1%
Total	2,61,43,943	2,45,58,437	6.5%

Macroeconomic and Policy Support

The Government of India has set an ambitious target to construct 10,000 kilometres of highways in financial year 2025-26 and raise H 30,000 crore through road asset monetisation, creating strong tailwinds for the sector.

Traffic Outlook and Competition from Parallel Roads

While the construction of parallel roads may pose a competitive threat, the overall economic growth and vehicle sales momentum are expected to sustain and grow traffic volumes on the companys road assets.

Technological Advancements in Toll Collection

NHAIs introduction of Global Navigation Satellite System (GNSS)-based Electronic Toll Collection (ETC) is planned to integrate with the existing FASTag ecosystem under a hybrid model. In the longer term, dedicated GNSS lanes are expected to eliminate the need for toll plazas entirely. This transition will help reduce operational and maintenance costs for toll road operators, enhancing overall profitability.

Forward Looking Statements

Statements in this Management Discussion and Analysis of financial condition and results of operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. Such statements are inherently subject to a number of risks, uncertainties and assumptions, many of which are beyond the Companys control. Actual outcomes and results may differ materially from those expressed or implied in these statements due to various factors, including but not limited to:

Regulatory changes and the determination of tariffs, levies, or other charges by competent authorities;

Changes in government policies, laws and regulations (including tax laws);

Domestic and global economic and market developments; and

Other risks and uncertainties that may arise in the course of business operations.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements as a result of any subsequent developments, new information, future events, or otherwise, except as required under applicable law.

The financial statements of the Company are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 (the "Act") and comply with the Companies (Indian Accounting Standards) Rules, 2015, as prescribed under Section 133 of the Act. The management of Reliance Infrastructure Limited ("Reliance Infrastructure" or "Reliance Infra" or "the Company") has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit/loss for the financial year. This Management Discussion and Analysis should be read in conjunction with the Companys audited consolidated financial statements and the accompanying notes as included in this Annual Report.

Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "Reliance Infra", "Reliance" or "Reliance Infrastructure" are to Reliance Infrastructure Limited and its subsidiary companies and associates.

Outlook

Indias Infrastructure forms an integral part of the countrys economic ecosystem. There has been a significant shift in the industry that is leading to the development of world-class facilities across the country in the areas of roads, waterways, railways, airports, and ports, among others. The countrywide smart cities programmes have proven to be industry gamechangers. Given its critical role in the growth of the nation, the infrastructure sector has experienced a tremendous boom because of Indias necessity and desire for rapid development. The expansion has been aided by urbanization and an increase in foreign investment in the sector. The infrastructure sector has become the biggest focus area for the Government of India. Indias GDP is expected to grow by 6.5% in financial year 2026 and further become the third largest economy by 2028, one of the strongest growth among major, developing economies. In Budget 2025-26, capital investment outlay for infrastructure has been increased to H 11.21 lakh crore, which would be 3.1% of GDP. Starting with 6835 projects in 2019 the National Infrastructure Pipeline project count now stands at 13,000 projects covering 33 sub sectors, as per news reports. To conclude it is envisaged that development of infrastructure shall have a multiplier effect on the growth of our countrys economy and is expected to increase the overall commercial and entrepreneur opportunities.