Savita Oil Technologies Ltd Management Discussions

A. GLOBAL ECONOMIC SCENARIO

The global economy operated in an increasingly uncertain environment during 2025, shaped by rising trade tensions, evolving tariff policies, fiscal adjustments across major economies and persistent geopolitical conflicts. Ongoing tensions in Eastern Europe and the Middle East continued to influence global supply chains, energy markets and investor sentiment, contributing to periodic volatility in commodity prices and financial markets. At the same time, economies continued to adapt through supply chain diversification, improved energy security measures and targeted policy interventions.

While trade policy uncertainty and geopolitical developments weighed on economic activity, global economic growth remained steady at 3.4% in 2025. Growth was supported by strong technology-related investments, including artificial intelligence (AI), accommodative financial conditions and resilient demand across several economies.

Advanced economies expanded by approximately 1.9% in 2025, supported by relatively stable labour markets, easing financial conditions and recovering consumer demand. Emerging Market and Developing Economies (EMDEs) continued to demonstrate resilience, with growth estimated at 4.4% in 2025. Domestic consumption, infrastructure investment and improving activity across manufacturing and services sectors led this growth.

Global inflation continued to moderate during 2025, although the pace of disinflation varied across economies. While easing supply pressures and the cumulative impact of monetary tightening helped contain price pressures, inflation remained above target in some major economies, particularly the United States. This divergence kept central banks cautious about the pace of easing monetary policy.

Outlook

The global outlook remains subject to heightened uncertainty amid evolving geopolitical developments, trade policy shifts and financial market volatility. Continued tensions in key regions may affect energy prices, logistics networks and global investment flows. However, ongoing investments in technology, digital infrastructure and productivity-enhancing sectors, together with efforts to strengthen supply chain resilience and energy security, are expected to support economic activity.

Global growth is projected to moderate to 3.1% in 2026 before improving marginally to 3.2% in 2027. Advanced economies are expected to grow by 1.8% in 2026, while EMDEs are projected to expand by 3.9%, supported by domestic demand and infrastructure spending. Although risks from geopolitical tensions and trade policy uncertainty remain elevated, the global economy is expected to continue its gradual expansion over the medium term. However, price pressures softened across several economies, supporting consumer demand and macroeconomic stability. This gradual moderation in inflation is expected to provide a favourable backdrop for economic activity going forward.

B. DOMESTIC ECONOMIC SCENARIO

The Indian economy remained among the fastest-growing major economies in FY 2025-26, supported by resilient domestic demand, infrastructure investments and policy reforms. According to the Second Advance Estimates released by the National Statistical Office (NSO), real GDP is estimated to grow by 7.6% in FY 2025-26, while real Gross Value Added (GVA) is estimated at 294.40 lakh crore, reflecting growth of 7.7% over the previous year. Growth was driven by strong private consumption, healthy investment activity and continued expansion across services and manufacturing sectors.

India continued to strengthen its position in the global economy and is now recognised as the worlds sixth-largest economy by nominal GDP. Structural reforms such as the Goods and Services Tax (GST), Production Linked Incentive (PLI) schemes, and Make in India initiatives continue to support formalisation, manufacturing competitiveness and integration into global supply chains. Manufacturing activity remained resilient during the year, with the HSBC India Manufacturing PMI rising to 55.0 in May 2026, driven by faster gains in new orders,

output and purchasing, led by domestic demand as exports softened.

The conflict in West Asia and disruptions across global trade routes have created fresh uncertainty around energy prices, logistics and availability of critical industrial inputs. As an import-dependent economy for crude oil and intermediate goods, India remains exposed to global supply chain disruptions and commodity price volatility. However, diversified sourcing strategies, domestic manufacturing capabilities and integration with emerging markets are helping mitigate external risks and support industrial continuity.

Industrial activity remained robust, supported by infrastructure development and government-led capital expenditure. Driven by a strong expansion of 6.2% in the Manufacturing Sector, the Index of Industrial Production (IIP) recorded 4.9% growth in April 2026.

Indias renewable energy sector continued to witness strong momentum during FY 2025-26. Indias total installed renewable energy capacity reached 274.68 GW, representing a growth of almost three times the capacity installed a decade ago. The Government continues to advance towards its target of 500 GW of non-fossil fuel-based energy capacity by 2030, supported by ongoing investments in renewable power generation, transmission infrastructure and grid integration. Reflecting the scale of this transition, the International Energy Agency (IEA) estimates that Indias energy investment will reach approximately USD 170 billion in 2026, driven by spending across renewable energy, electricity networks and energy infrastructure. These investments are expected to strengthen energy security, support industrial growth and accelerate Indias clean energy transition.

Government initiatives continued to support manufacturing and investment activity. The Production Linked Incentive (PLI) Scheme has attracted investments of over 2.16 lakh crore across key sectors, contributing to capacity creation, employment generation and domestic value. Continued public capital expenditure on transportation, logistics, energy and digital infrastructure has supported broad-based economic growth.

Inflation moderated significantly during the year, aided by favourable supply conditions and easing food prices. Reflecting the improving inflation outlook, the Reserve Bank of India reduced the policy repo rate to 5.25%, supporting credit growth, investment activity and overall economic momentum. Indias exports are expected to

approach USD 1 trillion in FY 2026-27, supported by expanding manufacturing capabilities, improving competitiveness and ongoing trade agreements.

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Indias GDP growth for FY 2025-26 is estimated at 7.4%, driven by the twin engines of consumption and investment, reinforcing its position as the worlds fastest-growing major economy for the fourth consecutive year. The country is projected to become a USD 30-35 trillion economy by 2047, supported by structural reforms, expanding digital and physical infrastructure, and sustained economic momentum.

Despite global trade uncertainties, geopolitical tensions and tighter financial conditions, Indias outlook remains positive, supported by strong domestic demand, easing inflation and a gradual revival in private sector investments. Initiatives such as Make in India 2.0 and the Production Linked Incentive (PLI) Scheme continue to strengthen manufacturing capabilities, promote exports and enhance global competitiveness, while improving rural consumption is expected to further support growth.

The Union Budget 2026-27 has reaffirmed the Governments focus on infrastructure-led development by increasing capital expenditure to a record 12.2 lakh crore, up from 11.2 lakh crore in the previous year. The increased allocation towards roads, railways, ports, airports, power transmission and urban infrastructure is expected to sustain investment activity and support the Governments vision of Viksit Bharat.

I. Petroleum Products Transformer Fluids

Transformer fluids are an integral component of power transmission and distribution systems, serving as both insulating and cooling media in Transformers and associated electrical equipment. As electricity demand continues to rise globally and power networks become increasingly complex, the importance of high-performance transformer fluids in ensuring operational efficiency and asset longevity has become more pronounced.

The global transformer oil market continues to benefit from sustained investments in electricity infrastructure, renewable energy integration and grid modernisation initiatives. The global transformer oil market was valued at approximately USD 2.9 billion in 2025 and is projected to reach USD 7.5 billion, growing at a CAGR of over 12% through 2033. Growth is supported by investments in transmission and distribution networks, replacement of ageing grid infrastructure and demand for reliable

power systems. The utilities sector is expected to remain a key demand driver, while bio-based and ester-based transformer fluids are emerging as one of the fastest-growing product categories, owing to emphasis on safety and sustainability.

India remains one of the most attractive growth markets for the transformer industry. The countrys continued focus on strengthening transmission infrastructure, integrating renewable energy capacity and enhancing power accessibility is driving investments across the electricity value chain. Government-led initiatives aimed at expanding Transmission corridors, modernising distribution networks and supporting renewable energy evacuation are expected to create sustained demand for transformers and insulating fluids. Electricity consumption from industrial expansion, urbanisation and digital infrastructure development is further reinforcing the need for reliable power networks.

The industry is also witnessing a gradual shift in customer preferences from conventional insulating fluids towards advanced solutions that offer enhanced fire safety and environmental performance. This trend is particularly visible across critical infrastructure applications such as renewable energy projects, transportation systems, data centres, industrial facilities and urban utility networks, where asset safety and sustainability considerations are becoming increasingly important.

Your Company continues to maintain a strong position in this evolving market through its comprehensive transformer fluid portfolio marketed under the TRANSOL brand. Your Company is uniquely positioned as the only global manufacturer offering mineral, natural ester and synthetic ester-based transformer fluids, enabling it to address a wide range of customer requirements across utility, industrial and infrastructure applications.

Opportunities, Threats & Risks and Future Roadmap Opportunities

The transformer fluids industry is expected to benefit from sustained investments in power generation, transmission infrastructure and renewable energy integration. Increasing deployment of renewable energy assets, grid modernisation and expansion of transmission networks are expected to support long-term demand for transformer fluids across utility and industrial applications.

The industry is also witnessing a shift towards advanced insulating fluids that offer enhanced safety, environmental performance and operational efficiency. Adoption of ester-based transformer

fluids across renewable energy projects, data centres, transportation infrastructure and other critical applications presents a significant opportunity for manufacturers with diversified product portfolios.

Threats & Risks

Despite favourable growth prospects, the industry remains exposed to risks arising from fluctuations in crude oil and feedstock prices, evolving regulatory requirements and competitive intensity. The transformer fluid industry is characterised by stringent qualification processes and approval cycles, particularly for specialised applications, which can impact the pace of product adoption.

In addition, customers are increasingly focussing on product performance, safety standards and sustainability credentials, requiring continuous investment in innovation, testing and technical support capabilities.

Future Roadmap

Your Company remains focussed on strengthening its leadership position in transformer fluids through customer engagement and technology-led product development. Your Companys ability to offer a portfolio encompassing mineral, natural ester and synthetic ester transformer fluids enables it to address evolving customer requirements across diverse applications.

Going forward, your Company intends to deepen its presence in high-growth applications where safety, sustainability and performance are becoming important in decision-making. Opportunities are again emerging from power infrastructure expansion, renewable energy integration and the ongoing transformation of global electricity networks.

Ester Fluids for Transformers

The transformer fluids industry is witnessing a transition towards advanced insulating fluids that offer enhanced safety, sustainability and operational performance. Natural and synthetic ester-based transformer fluids are increasingly being adopted across critical electrical infrastructure due to their superior fire safety, biodegradability and environmental benefits compared to conventional mineral oils.

According to industry estimates, the global ester-based transformer oil market was valued at approximately USD 624.83 million in 2025 and is advancing at a healthy 7.73% CAGR from 2026 to 2032, as utilities and industrial players prioritise safer, greener insulation solutions. Growth is being driven by investments in renewable energy,

grid modernisation and critical infrastructure, where reliability and sustainability are becoming increasingly important.

In India, expanding investments in renewable energy, transmission infrastructure, metro rail networks, airports, data centres, and battery energy storage systems (BESS) are supporting the adoption of ester-based transformer fluids. The increasing focus on operational safety, environmental sustainability, and asset reliability is accelerating this transition.

Your Company is well positioned to capitalise on this opportunity through its TRANSOL portfolio and remains the only global manufacturer offering mineral, natural ester and synthetic ester transformer fluids. Supported by its synthetic ester manufacturing capabilities and innovation-led approach, your Company continues to strengthen its presence in advanced transformer fluid technologies.

Opportunities, Threats & Risks and Future Roadmap Opportunities

Growing investments in renewable energy, transmission networks, data centres and energy storage systems are expected to support increasing demand for ester-based transformer fluids. Rising emphasis on fire safety, sustainability and lifecycle performance is likely to further accelerate adoption across utility, industrial and infrastructure applications.

Threats & Risks

The industry remains exposed to higher costs compared to conventional mineral oils, extended qualification cycles and evolving technical standards. Changes in raw material availability and regulatory requirements may also influence adoption trends across certain applications.

Future Roadmap

Your Company remains focussed on expanding the adoption of ester-based transformer fluids through innovation, technical collaboration and customer engagement. Backed by its differentiated portfolio, synthetic ester manufacturing capabilities and strong customer relationships, your Company is well positioned to benefit from the transition towards safer, high-performance and environmentally responsible transformer technologies.

White Mineral Oils

White mineral oils are highly refined specialty oils used across pharmaceutical, personal care, food processing, plastics, packaging, agriculture and industrial applications. Their purity, stability and

safety characteristics make them an important ingredient in products where quality and regulatory compliance are critical.

The global white oil market continues to witness steady growth, supported by rising demand from the pharmaceutical, healthcare and personal care industries. The global white oil market is expected to reach USD 3,386.3 million by 2033, and continue expanding over the coming years, driven by increasing consumption of healthcare products, cosmetics, hygiene solutions and specialty polymer applications.

India remains an attractive market for white mineral oils, supported by growth in pharmaceutical manufacturing, personal care products and polymer-based applications. India is the worlds third-largest pharmaceutical industry by volume, and the domestic pharmaceutical market, valued at approximately USD 60 billion, is projected to reach USD 130 billion by 2030. This expansion reinforces demand for high-purity ingredients and specialty inputs used in healthcare formulations. Rising consumer awareness, healthcare access and emphasis on product quality are expected to further support demand for white mineral oils across pharmaceutical, personal care and allied industries.

Your Company is among the leading suppliers of white mineral oils in India and offers a diversified portfolio under the TECHNOL, SAVONOL and SAVOGEL brands. Your Companys products cater to a broad customer base across pharmaceutical, personal care, food-grade, plastics and industrial applications, enabling it to address evolving customer requirements in domestic and international markets.

Opportunities, Threats & Risks and Future Roadmap Opportunities

Growing healthcare expenditure, pharmaceutical production and consumption of personal care products are expected to support demand for white mineral oils. Rising requirements from plastics, packaging, food-grade and specialty industrial applications are also creating opportunities for high-purity mineral oils. Emphasis on product safety, regulatory compliance and formulation quality across end-use sectors is expected to drive demand for specialised and value-added grades.

Threats & Risks

The industry remains exposed to fluctuations in feedstock costs, evolving regulatory requirements and increasingly stringent quality standards across pharmaceutical, personal care and food-related applications. Competitive intensity, import pressures and shifts towards alternative ingredients in select

formulations may also influence market dynamics. Maintaining consistent product quality and compliance with global standards remains critical for sustained growth.p>

Future Roadmap

Your Company remains focussed on strengthening its position through product quality, regulatory compliance and customer-centric solutions. Your Company will continue to expand its portfolio of high-purity specialty products while deepening relationships across pharmaceutical, personal care, food-grade and industrial segments. Leveraging its established brands, diversified customer base and technical expertise, your Company aims to enhance its presence in both domestic and international markets. Your Company also addresses customer requirements through innovation and application-focussed product development.

Automotive and Industrial Lubricants

Indias automotive and industrial lubricants market continues to be shaped by evolving vehicle technologies, stricter emission regulations and performance requirements across automotive and industrialequipment.Whileinternal combustion engine (ICE) vehicles continue to dominate the countrys automotive base, manufacturers and consumers are increasingly adopting higher-performance lubricants that improve fuel efficiency, engine protection and equipment reliability.

The Indian lubricants market was valued at approximately USD 4.92 billion in 2025 and is projected to reach USD 7.53 billion by 2034, supported by rising automotive production, industrial activity and demand for high-performance lubricant solutions. Automotive applications accounted for nearly 46% of total lubricant demand during the year.

Indias automotive sector continued to support lubricant demand across vehicle categories during FY 2025-26. Total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles stood at approximately 3.47 units in FY 2025-26. The continued expansion of vehicle ownership, freight movement and personal mobility supported demand across automotive lubricant categories.

Alternative mobility continued to gain traction during the year. Electric vehicle registrations increased by around 80% in FY 2025-26, from the previous year. CNG vehicle adoption increased steadily due to lower operating costs and expanding refuelling infrastructure. Although conventional lubricants continue to dominate overall demand, the transition

towards electric and alternative-fuel mobility is creating opportunities for specialised fluids, thermal management solutions and next-generation lubricant technologies.

Demand for premium lubricant products also continued to rise. Indias synthetic lubricants market generated revenue of approximately USD 1.02 billion in 2025 and is projected to earn a revenue of USD 1,379.1 million by 2033. This reflects increasing customer preference for superior engine protection, drain intervals and equipment performance.

Regulatory developments such as Bharat Stage VI (BS-VI) emission standards and Corporate Average Fuel Efficiency (CAFE) norms continue to reshape lubricant requirements across the automotive industry. The need to improve fuel economy and reduce vehicle emissions is driving greater adoption of low-viscosity, synthetic and semi-synthetic lubricants that offer enhanced engine protection and operational efficiency. Increasing use of advanced engine technologies, turbocharged engines and emission control systems is also encouraging demand for high-performance lubricants that deliver improved thermal stability, oxidation resistance and longer service intervals. These trends are contributing to the ongoing premiumisation of the automotive lubricants market and creating opportunities for technology-led lubricant manufacturers.

Your Company continued to strengthen its presence in this evolving market through the SAVSOL brand. During the year, your Company expanded its focus on ester-based lubricant technologies through SAVSOL Ester5. Leveraging its proprietary ester molecule platform, your Company is developing lubricant solutions that offer improved lubricity, lower friction, enhanced engine cleanliness and superior performance characteristics compared to conventional formulations. Your Company is also evaluating emerging applications such as EV cooling fluids and advanced thermal management solutions, reflecting its focus on future mobility technologies.

During the year, your Company further strengthened its Original Equipment Manufacturer (OEM) engagement strategy through a multi-year partnership with Mahindra & Mahindra Limiteds Automotive and Farm Equipment Business. Under this collaboration, Savita will supply Mahindra Tractor Genuine Engine Oils under the MStar brand across Mahindras franchise workshop and spare parts distribution network in designated geographies. The partnership is expected to further strengthen the Companys presence in agricultural and farm equipment lubricant segment while reinforcing its position as a trusted lubricant solutions provider.

Opportunities, Threats & Risks and Future Roadmap Opportunities

Growing vehicle ownership, industrial expansion, infrastructure investments and increasing adoption of premium lubricant technologies are expected to support long-term demand. Opportunities are also emerging in synthetic lubricants, specialised industrial fluids, EV thermal management and alternative-fuel vehicle applications.

Threats & Risks

The industry remains exposed to fluctuations in crude oil and base oil prices, competitive pricing pressures and evolving emission and regulatory requirements. Increasing vehicle electrification and lubricant drain intervals may gradually influence lubricant demand across certain segments.

Future Roadmap

Your Company remains focussed on expanding its presence in high-performance lubricant technologies through innovation, brand development and customer engagement initiatives. Leveraging its Ester chemistry capabilities and technology-led product portfolio, your Company aims to strengthen the SAVSOL brand. This addresses evolving requirements across automotive, industrial and emerging mobility applications.

New-Age Fluids

The growth of electric mobility, artificial intelligence (AI), data centres and energy storage infrastructure is creating demand for advanced fluid technologies. This supports efficient thermal management, operational reliability and safety. As power densities increase across these applications, specialised cooling and dielectric fluids are gaining importance.

Immersion cooling is emerging as a promising solution for data centres and AI infrastructure. Industry estimates indicate that the global immersion cooling fluids market, currently valued at approximately USD 400 million, is expected to exceed USD 2 billion by 2031. The adoption of electric vehicles and Battery Energy Storage Systems (BESS) is also creating opportunities for advanced cooling solutions.

Leveraging its expertise in ester chemistry, your Company is evaluating new-age applications for its proprietary ester molecule platform. Your Company is currently piloting ester-based solutions for EV cooling, particularly in the two-wheeler and three-wheeler segments, while also exploring immersion cooling applications for data centres and high-performance computing environments.

Opportunities, Threats & Risks and Future Roadmap Opportunities

Growing investments in AI infrastructure, data centres, electric mobility and energy storage systems are expected to support demand for advanced cooling and thermal management fluids.

Threats & Risks

Commercial adoption remains dependent on technology validation, customer qualification cycles, evolving industry standards and cooling technologies.

Future Roadmap

Your Company focusses on leveraging its ester chemistry platform to develop differentiated solutions for emerging applications through research, product development and customer collaboration.

II. Wind Power

Industry Structure and Development

Wind power delivered one of its strongest years on record in 2025, with over 165 GW of new capacity installed worldwide, extending the industrys climb past the 1 terawatt cumulative milestone it had crossed just a year before. India remains one of the worlds leading wind energy markets supported by a mature manufacturing ecosystem, favorable policy measures and abundant wind resources, continuing to strengthen its position in the global renewable energy sector. This inclination towards wind power is being driven by grid operators looking for reliable clean power, by companies pursuing their own decarbonization goals through direct procurement, and by governments that now view wind as central to energy security and not just as a source of clean energy. Integrating wind power into Round-the- Clock (RTC) Renewable Energy solutions through storage-linked business models makes Wind energy a perfect complement to solar energy, helping power provide consistent, renewable power round the clock.

The sector continues to benefit from various policy interventions, including competitive bidding mechanisms, graded waiver of Inter-State Transmission System (ISTS) charges, and a separate Wind Renewable Consumption Obligation (RCO) framework. These measures are expected to support the further deployment of wind energy while contributing to Indias target of achieving 500 GW of non-fossil-fuel-based energy capacity by 2030. Also, to augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared by the Government. GoI is working towards

changing its energy mix and relying heavily on renewable sources, in which wind will play a key role.

India achieved its highest-ever annual wind capacity addition of 6.05 GW during FY 2025-26, representing an increase of nearly 46% over FY 2024-25. With this addition, the countrys cumulative installed wind power capacity crossed 56 GW. This is supported by a growing pipeline of wind-solar hybrid projects and the progressive rollout of Green Energy Open Access initiatives. Efforts taken by the Government is expected to strengthen the domestic ecosystem and is expected to support future capacity additions while enhancing Indias position within global renewable energy supply chains.

Opportunities, Threats & Risks and Future Roadmap Opportunities:

Rising electricity demand, renewable energy procurement by commercial and industrial consumers, growth in wind-solar hybrid projects that offer round-the-clock power, and investments in transmission infrastructure are expected to support growth. India has also emerged as a significant manufacturing base for the wind sector, with annual manufacturing capacity exceeding 24 GW and localisation levels estimated at 70%-80% across key components. Additionally, the government has enforced the Approved List of Models and Manufacturers (ALMM) for wind turbines to ensure quality standards and indigenization. This was also supported by the launch of WT-MARUT portal (Wind Turbine Materials and Resources Utility Tracker) on June 15, 2026. We can now digitally map and track wind turbine parts (such as blades, gearboxes, towers) from factory to final installation sites. With most of Indias estimated wind potential standing at 1,163.86 GW at 150-metre hub height still untapped, there is significant room for both new projects and repowering of older, sub-megawatt turbines presently at high-wind sites.

Threats:

The sector remains exposed to transmission bottlenecks, project execution delays, supply chain disruptions and evolving regulatory frameworks. Land acquisition remains a challenge in several states, along with delays in right-of-way and grid connectivity approvals. Regulatory frameworks are still evolving on RPO enforcement, REC market design, which adds some uncertainty to project economics. Moreover, the variability in wind resources due to climate change and competitive tariff dynamics also impact the project viability.

Future Roadmap:

Moving towards Indias goal of 100 GW by 2030, its wind sector enters FY 2026-27 strong pivoting heavily away from standalone wind power projects towards Wind-Solar Hybrid allocations and firm green power tenders to ensure grid stability. The long-term outlook for Indias wind energy sector also remains favorable, supported by policy support, capacity additions and increasing investments, reinforcing the broader renewable energy ecosystem by driving growth in transmission infrastructure, domestic manufacturing capabilities and clean energy transition initiatives. Offshore wind is advancing too. During the year, the Government of India has recalculated the length of Indias coastline from 7516.9 km to an enormous 11,098.81 km. The NIWE (National Institute of Wind Energy) has estimated approximately 70 GW off-shore wind power potential off the coasts of Gujarat and Tamil Nadu. As India progresses towards its clean energy targets, wind power is expected to remain a major and reliable contributor to the countrys energy transition and long-term energy security.

C. SEGMENT-WISE PERFORMANCE

I. Petroleum Products

During FY 2025-26, your Company recorded standalone sales volumes of 513,110 KLs/MTs, compared with 440,136 KLs/MTs in FY 2024-25. Sales turnover increased to 432,644 lakh from 378,675 lakh in the previous year. Your Company reported a net profit of 19,385 lakh for FY 2025-26, as against 12,377 lakh in FY 2024-25.

II. Wind Power

The total installed capacity in Wind Power Division of your Company stands at 53.1 MW. During the Year 2025-26, your Companys Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamil Nadu generated 94.91 MU against 84.26 MU generated in the previous year.

D. KEY FINANCIAL RATIOS

Particulars	Change*	Remarks
Inventory Turnover Ratio	10.10	Optimised supply chain and higher demand resulted in better Inventory turnover
Debt Equity Ratio	-	Not applicable
Debtors Turnover Ratio	7.72	Improved over previous year, primarily driven by higher volumes in the current fiscal year
Current Ratio	-9.59	Trade payable increased as compared to previous year
Interest Coverage Ratio	213.32	Improved operating margin and optimised working capital utilisation supported higher Interest coverage ratio
Operating Profit Margin	27.64	Operating leaverage from surging demand, moderating feedstock prices and improved on premiumisation mix
Net Profit Margin	37.13	Operating leverage from surging demand, moderating feedstock prices and improved on premiumisation mix
Return on Net Worth change	46.93	Improved profitability and margin as compared to previous year

* On a standalone basis

E. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

A strong internal control system is essential for ensuring the integrity, authorisation and accurate recording of financial and accounting information. It supports reliable financial reporting, enhances accountability, improves operational efficiency, safeguards assets, prevents fraudulent activities and ensures compliance with applicable laws and regulations. As a key line of defence against fraud and financial irregularities, internal controls comprise policies and procedures designed to facilitate sound management of operations, optimal utilisation of resources, protection of assets, reliability of financial information and adherence to statutory requirements.

I n an increasingly dynamic regulatory environment, effective internal controls play a vital role in helping organisations meet compliance obligations and maintain high standards of corporate governance. They assist in aligning business processes with applicable laws and regulations, while mitigating legal, financial and reputational risks. Furthermore, a robust control framework promotes clear accountability across the organisation, ensuring that employees understand their roles and responsibilities and fostering a culture of continuous improvement through ongoing evaluation and feedback.

Your Company has established a robust internal control framework commensurate with the size, scale and complexity of its operations. The Audit Committee regularly reviews the functioning of the Internal Audit process. Independent Internal Auditors appointed by the Company conduct periodic audits to evaluate the adequacy and effectiveness of internal controls in areas identified by the Committee and recommend corrective measures wherever required.

Internal audit reports are reviewed by the Audit Committee at its meetings, and significant observations are discussed in detail. Based on these observations, the Committee formulates action plans and recommendations, which are communicated to the respective department heads for implementation and compliance. Progress on the agreed action plans is subsequently monitored and reviewed by the Audit Committee during its ensuing meetings.

F. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

During FY 2025-26, your Company continued to maintain harmonious industrial relations across all its locations, fostering a stable, inclusive and collaborative work environment. Recognising human capital as a key driver of organisational growth, your Company places significant emphasis on employee engagement, development and well-being, acknowledging the vital role played by its workforce in achieving sustainable business growth and long-term success.

Your Company remains committed to providing a workplace that enables employees to realise their full potential, contribute meaningfully and advance their professional capabilities. Regular training and development initiatives are undertaken to enhance employee skills, competencies and productivity. The employee performance management framework facilitates continuous improvement through timely assessments and constructive feedback, ensuring alignment of individual performance with the Companys strategic objectives, targets and goals.

Your Company continues to nurture a culture that encourages innovation, collaboration and resilience. Its sustained focus on talent development and employee empowerment is expected to remain instrumental in achieving its long-term strategic priorities and business objectives.