Triveni Engineering and Industries Ltd Management Discussions

(DDGS), Potash-rich ash and CO2

• Forward integration of distillery operations to Indian Made Indian Liquor (IMIL) and Indian Made Foreign Liquor (IMFL).

• Oil Marketing Companies, Institutional and Retail Customers etc.

• Alcohol produced: 2,36,510 KL (kilo litres)

• Alcohol sales: 2,13,453 KL

• Alcohol sales from sugarcane: from grain-based feedstocks: 44% : 56%

• Average realisation: Rs. 61.0 / Ltr.

• Revenue (net of excise duty): Rs. 1,552.4 crores

• PBIT: Rs. 119.3 crores

Turnover of FY 26 was higher by 5% as compared to the previous year, on account of higher alcohol despatches, which were higher by 11,885 KL i.e., 6% over the previous year. While average realisation prices shifted slightly lower to Rs. 61/litre due to a higher mix of FCI rice-allocated ethanol – which carries lower relative pricing than maize – the volume growth more than compensated for the variance. Overall turnover growth was also contributed by the alco-beverages, with the IMIL business registering a volume growth of 6% at 58.9 lakh cases.

The increase in production and sales during the year is attributable to far better availability of feedstocks, as well as on account of the full year operations of the multi-feed distillery at Rani Nangal, which was commissioned during the previous year.

The profitability (PBIT) witnessed an increase of 200% over the previous year, higher by Rs. 79.6 crores. The increase is attributable to the higher turnover, reduction in the procurement cost of maize, improved operational performance owing to better feedstock availability and cost optimisation. The higher realisation price of DDGS (by-product), also contributed to the increase in profitability.

The Company has tied-up aggregate allocation of 17.18 crores litres of ethanol under Cycle-1 of OMC tender and with Private OMCs. Additionally, the Company shall also utilise around 1.8 crores litres of ENA for production of potable alcohol. The Company expects further allocation in the subsequent cycle.

• Achieved highest-ever production and sales volume during FY 26;

• Recoveries in both molasses and grain distilleries were better than or at par with the previous year;

• Focussed approach on improving the quality of DDGS;

• Continuous initiatives are focussed on enhancing efficiencies and optimising costs, particularly in enzyme usage, fuel consumption, repairs & maintenance spends, personnel & administration costs etc.:

– Reduction in bagasse consumption in the incineration boiler at the molasses-based distillery at Muzaffarnagar, through increased consumption of slop;

– Internal debottlenecking at the grain-based distillery at Muzaffarnagar to increase production from maize and reduction in power consumption by ~2,000 units/day through close monitoring and system improvements;

– Fermentation efficiency at Sabitgarh distillery improved through effective utilisation of enzymes and process optimisation;

– Chemical consumption at Rani Nangal & Milaknarayanpur distilleries has been reduced through process optimisation measures and improved fuel efficiency has led to lower consumption of bagasse.

• Growth in IMIL volumes significantly outperformed the industry despite aggressive competition, securing a position among the top five players in Uttar Pradesh.

India imports nearly 88–89% of its crude oil, with a substantial share originating from West Asia. The hostilities between Iran and the U.S / Israel have raised crude oil prices, freight rates, insurance costs as well concerns over supply security through the Strait of Hormuz. Consequently, ethanol blending becomes more valuable as a strategic substitute for imported crude oil, helping reduce import dependence and foreign exchange outflows. The Government has repeatedly cited these energy-security benefits alongside environmental and farmer-income objectives.

Industry bodies such as the All India Distillers Association (AIDA) and Grain Ethanol Manufacturers Association (GEMA) have advocated a phased roadmap to higher blends (e.g., E25, E27, E30). This would help absorb idle capacity, provide long-term demand visibility, improve plant utilisation and support returns on investments made under earlier policy signals. The Government is seized with the concerns regarding the overcapacity that currently exists in the country as regards ethanol production and various plans / policy decisions are being evaluated to increase application areas for ethanol and to effectively utilise the existing production capacity in the country:

• An Inter-ministerial group along with NITI Aayog is working on roadmap for "Beyond E-20". Recently, the draft rules inviting public comments were issued, proposing inclusion of E-85 and E-100 as automobile fuel, supported by available BIS Standards – a significant step for testing, promoting and adopting Flex Fuel Vehicles;

• Recent draft amendments to the Central Motor Vehicles Rules (CMVR), 1989 proposing the inclusion of higher ethanol blends under emission norms, provide a regulatory basis for the formal introduction of flex fuel vehicles (FFVs) and isobutanol blended diesel capable vehicles in India. GOI has recently notified new BIS Standard which lay down specifications for E-22, E-25, E-27 & E-30 fuel blends.

• Bio-Isobutanol blending with high-speed diesel is under evaluation, potentially starting at 2% by ESY 2027-28.

• Aviation Turbine Fuel (ATF) has been redefined to include synthetic hydrocarbons, enabling sustainable aviation fuel (SAF) integration, which includes Ethanol to Jet (ETJ) Pathway. The Government has mandated a target of SAF blended aviation fuel for international flights of 1% by 2027, escalating to 2% by 2028 and 5% by 2030.

• The Government is also exploring introduction of ethanol stoves to address LPG shortages and boost demand, though studies are underway regarding safety and supply chain.

The Companys diversified manufacturing platform, comprising both conventional molasses-based distilleries and dual-feed distilleries capable of processing both molasses and grain, provides significant strategic flexibility in an evolving industry environment.

The Companys diversified manufacturing platform, comprising both conventional molasses-based distilleries and dual-feed distilleries capable of processing both molasses and grain, provides significant strategic flexibility in an evolving industry environment.

Molasses-based distilleries continue to derive competitive advantages from integration with the Companys sugar operations, enabling efficient utilisation of by-products generated during sugar manufacturing while enhancing value realisation across the integrated business model. At the same time, the Companys dual-feed distilleries provide operational resilience by allowing production planning to be aligned with seasonal feedstock availability, prevailing procurement economics and evolving Government policies.

The ability to process multiple feedstocks reduces dependence on any individual raw material and enables optimisation of production throughout the year. This flexibility assumes increasing importance as agricultural production, climatic conditions and policy interventions continue to influence the availability and economics of sugar-based and grain-based feedstocks.

The Company believes that future industry leadership will increasingly depend not merely on installed capacity but on operational efficiency, diversified feedstock sourcing, technological capability, environmental stewardship and disciplined capital allocation. Accordingly, continued investments in process optimisation, energy efficiency, digital manufacturing systems, environmental compliance and value-added co-products will remain important strategic priorities.

The global industrial high-speed helical gearbox market forms a critical part of the broader power transmission ecosystem supporting energy-intensive and continuous process industries such as oil & gas, petrochemicals, power generation, metals, cement, and marine applications. These gearboxes are mission-critical components used in high-speed rotating equipment including compressors, turbines, pumps, and fans, where reliability, precision, and uninterrupted operation are essential. Due to their high capital intensity, long lifecycle (typically 15–25 years), and stringent performance requirements, the industry is characterised by high entry barriers, strong customer stickiness, and long qualification cycles.

The global high-speed helical gearbox market (OEM and aftermarket combined) is estimated at approximately USD_1,033 million in 2025 (Source: Coherent Market Insights), reflecting stable and structurally resilient demand linked to industrial activity rather than short-term economic cycles.

• Structural Growth Drivers - Rising industrial output across energy-intensive sectors, expansion in oil & gas, petrochemicals, liquefied natural gas, and power generation, increasing demand for energy-efficient and high-performance transmission systems.

• Aftermarket as Primary Value Driver - Ageing installed base in developed markets (US, Europe) and increasing focus on life-extension, reliability improvement & downtime reduction is driving strong growth in refurbishment, retrofits & spare parts and service contracts.

• Technology and Digitalisation - Integration of condition monitoring, predictive maintenance & digital diagnostics is strengthening long-term service relationships and recurring revenue streams.

• Shift Toward Localised Service Models - OEMs increasingly investing in local service infrastructure, regional supply chains & faster response capabilities.

• Order booking - Rs. 466.6 crores

• Revenue - Rs. 339.9 crores

• PBIT - Rs. 120.4 crores

• Closing order book - Rs. 484.6 crores

Since 1976, the Power Transmission Business (PTB), a division of Triveni Engineering and Industries Limited, has redefined excellence in high-speed gear solutions. From its cutting-edge Mysore facility, PTB serves over 80 countries, delivering API and AGMA-compliant gearboxes for oil & gas, petrochemicals, steel, cement, sugar, fertilisers, thermal, hydro, paper, and chemicals. Ranked amongst the top five high speed gear manufacturers globally, with over 12,500+ high-speed gearbox installations, having world class fully integrated facility with advanced multi-axis CNC machinery, PTB is poised to grow internationally. Core segments include:

In FY 26, PTB has continued to incur capital expenditure to enhance the capacity of gears business alone (not including Defence) to Rs. 700 crores and all such capital expenditure is likely to be completed by September, 2026. This capacity expansion positions the Business to address increasing global demand, improve delivery timelines and scale both OEM and aftermarket segments. The Business continues to invest in engineering and design capabilities, process optimisation and digitisation, talent and organisational capability.

PTB continues to place strong emphasis on Research & Development, focussing on the design and development of energy efficient, low noise gearbox solutions in alignment with global sustainability goals and OEM requirements. During FY_ 26, the R&D laboratory development reached the final stage of commissioning, strengthening PTBs in house testing and validation capabilities. In addition, PTB has been actively engaged in the development of defence-oriented technologies, including marine gearboxes for Fast Patrol Vessels and next generation Offshore Patrol Vessels, as well as other advanced mechanical solutions for critical applications.

• Initiated development of high-performance fixed pad offset bearing design software for higher efficiency and less oil flow

• Achieved a 15% reduction in gear mesh oil flow, contributing to reduced power loss in mesh

• Development of high-power high-speed gearbox with low noise level

• Optimised gearbox models through reduction of centre distance, enabling compact designs without compromising performance

PTB witnessed a moderate decline in revenue (8% YoY), primarily due to temporary moderation in order finalisation cycles, driven by delays in award of contracts by end-users impacting EPC players and OEMs. Order Booking during the year remained resilient at Rs. 467 crores, reflecting sustained demand across key segments. The order position grew by 25% to Rs. 485 crores (including long-tenure orders of Rs. 247 crores), providing strong revenue visibility.

PTB continues to maintain a dominant position in the domestic high-speed gearbox market, supported by:

• Strong engineering and design capabilities

• Fully integrated manufacturing infrastructure

• Established relationships with global OEMs

• Proven execution track record in critical applications

PTB proven performance in high power and critical applications has strengthened OEM relationships resulting in expanding footprint across global projects. PTBs closer to customer initiative by starting operations from European office has increased our customer connect and acceptance.

• The domestic market saw marginal growth in order bookings, driven primarily by the Steam Turbine Generator (STG) segment. The average order value increased due to shift in higher power

• High Power gearboxes > 30 MW - Total supplied is more than 22 nos., out of which 17 nos. are above 48 MW.

• Built to Print segment – mainly from IGC. First qualification order for a larger diameter gearset received, utilising the expanded manufacturing facility

• Few OEMs are planning to localise higher capacity IG compressor in India. This will increase the opportunity for business for PTB

• PTBs focus on the markets in the Middle East and Europe has led to additional contracts from major oil and gas companies

• Received a qualification contract from a major European compressor OEM for two compressor gearboxes

• Secured several new pump contracts for ADNOC installations, bringing PTBs installed fleet to over 40 units within last two years

• Awarded a contract to technically develop an auxiliary gearbox for the gas turbine application

• First Gearbox for Compressor Test Rig supplied to a Japanese compressor OEM –opening opportunities for future project orders

• Supplied highest power 27 MW compressor gearbox to a large European OEM

• Entered Japanese market for compressor application

• Supplied multiple API Gas Turbine driven pump gearboxes for Oil & Gas pipeline in South America

• Entered Oil & Gas majors (Middle East) through various OEMs for Pump application

• Supplied first 48 MW Steam Turbine Generator gearbox from a European OEM

• Entered Floating Production Storage and Offloading (FPSO) projects for South America and Africa

• Received landmark order from GTRE Axial Compressor Test Facility, first of its kind in Asia - significant enhancement of Indias indigenous capabilities in gas turbine engine development

• Repeat business from Alstom for Gearbox and Accessories for Load Motor Testrig Facility to support advanced testing and validation of motors under controlled load conditions

• 4.4 MW Gearbox order received from BPCL Mahul with Instruments & vibration package, Spare Gear Internals with nitrogen container, Set of Bearings, Oil Baffles & RTDs

• Received 30 MW Gearbox replacement to FGS make from Shyam SEL Jamuria

• 43 MW Gear Internals replacement to Allen Make Gearbox order received from APT Power

• Gear Internals order received from Star Cement as replacement to existing 43 MW Lufkin make Gearbox

• Received complete set of Gear Internals from Rusgard, Russia as a replacement to existing Lufkin 44.7 MW Gear box

• Complete set of Gear Internals received as replacement to existing IG Compressor GB from AYG Endustriyel, Turkey

• Received complete set of Gear Internals & Oil Vapour controller for 12.5 MW GB from Durrah Sugar, UAE

• Executed installation and commissioning of specialised gearboxes, including THSH series units at HAL Koraput and 30,500 RPM high-speed test rig gearboxes, achieving precise alignment, stable trials, and dependable operational performance

• Delivered end-to-end installation and commissioning support for an advanced test rig package under the Alstom project, enabling accurate traction motor validation for metro applications

• At Sanvira (overseas site), identified excessive axial thermal growth of the turbine impacting gearbox alignment and vibration; implemented gearbox modification to isolate and accommodate turbine thermal growth, stabilising vibration levels and sustaining operation

• In NSPCL (thermal power plant), diagnosed thermal growth mismatch between turbine and gearbox as the primary contributor to elevated vibration; modified gearbox floats in accordance with growth requirements, successfully restoring vibration levels; identified Main Oil Pump (MOP) pressure deviation due to site-specific PCV settings and resolved through optimised pressure settings

• Executed critical bearing replacement at ICS, Senegal with LOS modification in an imported substitute gearbox for an acid circulation pump, ensuring reliable and uninterrupted operation and providing required redundancy in lubrication systems

• At ACC Kymore, during turning gear retrofit activities, identified excessive mechanical overload during startup as the root cause of repeated work wheel breakage in the barring system; introduced a VFD-based drive system in the barring panel, enabling controlled acceleration, reduced starting torque, and smoother engagement; the modification significantly reduced startup loads, improved barring gear reliability, and enhanced overall startup performance and reliability

As part of optimising capacity utilisation, executed high-precision machining of select gear components through long-term supply contracts.

Key milestones of Triveni PTBs defence segment:

• Received the order for two major gearbox projects from Indian Navy besides ongoing execution of other marine gearbox projects.

• Consolidated further on technology for light weight.

• Ongoing thrust on exploring opportunities in Land & Aerospace.

• Working on expanding product portfolio for marine equipment with own technology.

• Commissioning of precision marine shaft manufacturing infrastructure.

• Consolidation of opportunities for sub-surface platform projects.

While FY 26 witnessed temporary moderation due to external factors, the underlying industry fundamentals remain strong with

• A structurally-resilient market

• Aftermarket-led growth dynamics

• Strong order book visibility

• Expanded manufacturing capacity

PTB is well positioned to transition into its next phase of growth, leveraging its engineering strengths, global partnerships, and increasing presence in overseas markets.

The wastewater treatment sector in India is experiencing significant growth. In 2025, the market was valued at USD 10.4 billion and is projected to reach USD 19.4 billion by 2034, growing at a CAGR of 7%. In India, the water & wastewater treatment market is propelled by accelerating urbanisation, industrialisation, population growth and growing water scarcity. Increasing environmental awareness, tighter regulations, and the requirement for sustainable water management drives demand for effective and innovative wastewater treatment solutions.

The global water & wastewater treatment market size was valued at USD 372.39 billion in 2025 and is projected to grow to USD 713.96 billion by 2034, exhibiting a CAGR of 7.50%.

India extracts more groundwater than China & USA combined, with over 50% of total clean water needs met through groundwater sources. However, treatment and re-use of household wastewater remain inadequate, with nearly 80% of the household water discharged untreated, polluting other water bodies. With 18% of the worlds population but only 4% of its freshwater resources, nearly 600 million Indians experience high to extreme water stress. Per capita water availability has declined sharply to approximately 1,100 M³, well below the internationally recognised water-stress threshold.

The Government of India has launched several large-scale programs to address water scarcity and improve wastewater management:

• Jal Jeevan Mission: Aims to provide 55 litres of tap water per person per day to every rural household, with a budget of Rs. 3.6 lakh crores.

• Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Focusses on establishing adequate sewage and water supply infrastructure in urban areas.

• Atal Bhujal Yojana: A groundwater management initiative launched in 2019 to improve groundwater levels in seven states through community participation.

• Namami Gange Programme: An integrated conservation mission launched in 2014 with a budget outlay of Rs._22,500 crores for 2023-26, aiming to abate pollution and rejuvenate the Ganges River.

The Union Budget 2026-27 allocation of Rs. 2,16,654 crores towards water supply, sanitation, and river conservation reflects a strong and sustained national commitment to the sector.

These initiatives are further supported by funding from multilateral agencies such as the World Bank, Japan International Cooperative Agency (JICA), Asian Development Bank and Exim Bank. Increasing adoption of the Public Private Partnership (PPP) and Hybrid Annuity Model (HAM) is deepening private sector engagement across both municipal and industrial segments.

Triveni Water business has a track record of executing projects across India and overseas, including Maldives and Bangladesh markets. The Water Business Group (WBG) of Triveni offers complete range of Water & Wastewater solutions, utilising innovative & advanced equipment and technology across a wide spectrum of applications. In an environment of tighter and stringent regulatory standards for water & wastewater discharge, which often challenge the capability of conventional treatment systems, WBG provides innovative and cost-effective systems and services to optimise operational efficiency and lower the life-cycle costs.

Triveni has in-house equipment manufacturing capabilities which adds to its strength in EPC business besides strong in-house Design & Engineering cutting-edge capabilities. Triveni has also undertaken projects on PPP/ HAM concession basis and is actively exploring new opportunities. The Company is geared up to undertake medium and large sized projects in India and overseas.

The various business sub-segments are detailed below:

• Design & manufacturing of process equipment for the entire spectrum of water and wastewater treatment Industry.

• Water and wastewater collection and distribution networks, including its design, construction, operation and management.

• Water treatment based on conventional processes, Ultra Filtration, Reverse Osmosis, Demineralisation, and Sea Water Reverse Osmosis.

• Wastewater/sewage treatment based on advanced technologies like Sequencing Batch Reactor (SBR), Moving Bed Biofilm Reactor (MBBR), etc., both for municipal and industrial applications.

• Design, Build, and Operate water & wastewater treatment plant, based on Ultra Filtration, Reverse Osmosis, Zero Liquid Discharge (ZLD) and Reuse.

• Design, Build and Operate (DBO) water & wastewater management systems on Engineering Procurement and Construction (EPC)/ Public Private Partnership (PPP)/ Hybrid Annuity Model (HAM)/ Build Own Operate Transfer (BOOT) models.

• Operations & maintenance of water and wastewater treatment plants.

Triveni is a leading name in Water & Wastewater Treatment sector and has technology associations with worlds leading technology providers for various products, process & solutions such as SBR, Ultra filtration (UF), Reverse Osmosis (RO), Moving Bed Bio Reactor (MBBR) & other technologies. By deploying advanced technologies, we provide innovative, sustainable solutions that address the growing global need for clean water and efficient wastewater treatment.

At Triveni, we believe a project is truly complete only when it is performing reliably, years after the commissioning certificate is signed. Our Operations & Maintenance contracts, spanning 5 to 15 years, are designed to deliver exactly that. As government disbursements increasingly shift toward outcome-linked models, funds tied to water actually delivered and quality actually monitored, long-term O&M accountability has become central to responsible project delivery. Our O&M services are structured around outcomes that matter most to our clients:

• Minimise Non-Revenue Water (NRW)

• Safeguard Source Water Quality

• Understand System Infrastructure

• Monitor and Control Corrosion

• Ensure System Integrity

• Maintain Adequate Disinfection Residuals

• Ensure Positive Pressure

• Implement Backflow Prevention

• Adopt Best Practices for Disinfection and Flushing

• Maintain Operational-Readiness

• Manage Distribution System Assets

• Spare Parts Inventory Management

• Product and Process Audits, Health Check-ups, and Overhauls

Triveni Water Business Group has access to the latest technologies in water and wastewater treatment. Our expertise ensures efficient and sustainable solutions tailored to meet the dynamic needs of the municipal & industrial requirements. We offer following technologies:

• Moving Bed-Bio Reactor (MBBR).

• Sequential Batch Reactor (SBR)

• Activated Sludge Process (ASP)

• A n a e ro b i c -a n ox i c -a e ro b i c P ro c e s s ( A 2O) Conventional technologies

• Filtration systems: Sand or Membranes

• High-Rate Clarifiers

• Membrane systems – Ultra Filtration (UF)/ Reverse Osmosis (RO)

• Wastewater Recycling and Reuse of treated wastewater

• Zero Liquid Discharge (ZLD)

The Water Business demonstrated improved execution momentum inflows during the year.

• Revenue increased driven by efficient execution.

• Revenue stood at Rs. 268.51 crores, higher by 15% year-on-year.

• PBIT stood at Rs. 31 crores, lower by 5% year-on-year.

• Total order booking during FY 26 was Rs. 165 crores, including EPC orders of Rs.125.84 crores.

• The total order book as of March 31, 2026 stood at Rs. 1,503 crores, including a significant portion from long-term O&M contracts.

The business continues to strengthen its position in recycling and reuse, with projects such as Balotra (18 MLD ZLD) and Pali (12 MLD ZLD) project for textile effluent, Bhiwadi (6 MLD ZLD) for mixed use industrial effluent, and 42 MLD sewage recycling at Vadodara, along with projects in Mathura at various stages of execution and O&M.

Internationally, the Maldives project covering six islands has been completed and handed over, including the defect liability period. The Bangladesh project under ADB funding has achieved substantial progress.

Ongoing O&M engagements include major installations such as CETPs and ZLDs at Bhiwadi and Balotra, desalination plants, and large STPs and WTPs across multiple locations.

• Successful completion and handover of EXIM Bank-funded Maldives water and sanitation project (Package 6) for 6 islands

• Order secured for 7.2 MLD ZLD plant from Ramagundam Fertilisers & Chemicals Ltd.

• Significant progress in ADB-funded Bangladesh STP projects

• Continued execution and O&M of large municipal and industrial treatment facilities, including CETPS & ZLDs at Bhiwadi & Balotra, desalination plants for Barmer Lignite, 204 MLD STP in Delhi, 210 MLD WTP in Greater Noida.

The outlook for the Water Business remains strong, supported by sustained government investments, regulatory tightening, and a widening demand-supply gap in water treatment infrastructure. The Union Budget 2026-27 has allocated

Rs. 2,16,654 crores toward water supply, sanitation, & river conservation, with JJM receiving Rs. 67,670 crores and Namami Gange targeting an additional 600 MLD of sewage treatment capacity, translating directly into a robust pipeline of EPC and HAM opportunities wherein Triveni is actively positioned.

Stricter enforcement of ZLD norms and the introduction of Liquid Waste Management Rules 2025 making industries accountable for the full lifecycle of water consumed, are accelerating industrial demand, particularly across textiles, pharmaceuticals, chemicals, and power sectors. Increasing adoption of treated wastewater by industries is further driving growth in recycling and reuse projects, well beyond compliance and into business continuity territory.

Internationally, EXIM Bank-led financing is opening opportunities across Asia and Africa. The Companys presence in Maldives and Bangladesh, along with its integrated EPC and O&M capabilities, positions it well to capitalise on these opportunities.

Opportunities continue to develop across water recycling, reuse and ZLD under both EPC and HAM models. Demand for sewage recycling is also gaining traction in select regions, supported by increasing industrial use of treated wastewater. Government programmes and initiatives, including NMCG, AMRUT and JJM, are expected to support continued demand for sewage treatment and water infrastructure projects. Triveni will continue to pursue projects selectively, with a focus on balanced growth across EPC, PPP and HAM models.

Pursuant to the approved Composite Scheme of Arrangement (Scheme), Sir Shadilal Enterprises Limited (SSEL) has been merged with the Company (TEIL) with effect from the appointed date on April 1, 2025. The Power Transmission Business (PTB) will be demerged into the Resulting Company, Triveni Power Transmission Limited (TPTL), with effect from April 1, 2026. Accordingly, the results of FY 2025-26 include the operations of PTB for the entire year.

The financial results of TEIL for FY 2025-26 include operations of SSEL from April 1, 2025, while the previous year includes its operations from June 20, 2024, when SSEL became a subsidiary of TEIL.

Further, fair valuation of assets / liabilities of SSEL has been done on the date of acquisition (June 20, 2024) and based on the net assets taken over as on April 1, 2025, an amount of

Rs. 48.30 crores has been credited to Capital Reserve as per the following details:

In accordance with the share exchange ratio approved under the Scheme, 14,65,048 equity shares of Rs. 1 each, are to be issued by the Company to the shareholders of SSEL and pending issuance, such amount has been recognised in Equity Suspense.

Net income from operations during the year has increased by 11% to Rs. 6,290 crores. The increase in net income is primarily driven by Sugar & Distillery businesses, which recorded an increase of 13% (or by Rs. 510 crores) & by 5% (or by Rs. 79 crores) respectively. While the turnover of the Engineering Business is almost at the same level as last year, the turnover of Power Transmission Business has declined by 8% due to deferment of deliveries in the last quarter by customers, including due to geopolitical situation. Water Business, however, registered an increase in turnover by 15%.

The increase in cost of material consumed by 8% is primarily on account of:

• Increase in cane price by Rs. 300/MT announced by GoUP for Sugar Season 2025-26,

• Higher grain cost due to increased grain operations,

• Higher outside purchase of molasses in distillery to ensure higher capacity utilisation.

In the seasonal sugar industry, manufacturing cost are directly linked to production rather than to the sales. Manufacturing expenses have increased by 9% mainly due to higher alcohol production by 18% (or by 364 lakh litres) and higher sugar production by 8% due to change of operations from B-Heavy molasses (BHM) to C-Heavy molasses (CHM) for all the sugar units.

Personnel Costs: The increase in personnel cost is attributable to normal annual salary increase.

Administration Expenses: The increase is in line with increase in business activities.

Selling Expenses: The expenses are lower due to higher reimbursement of freight on sale of Ethanol to private OMCs during the year.

Depreciation is higher by 14% due to fresh capitalisation of

Rs. 213.5 crores (incl. Rs. 132.9 crores in PTB towards capacity augmentation) during current year & full year impact of capitalisation done last year.

Finance cost has increased by 24% during the year due to additional costs relating to SSEL as well as due to higher working capital requirements. During the year, additional loans of Rs. 77 crores (including Rs. 51 crores for SSEL) were availed and loans of Rs. 98 crores were repaid. Cost of funds during the year was at 6.96% as against 7.04% in the previous year. Loans with subvention of interest constituted 28% of total term loans as against 49% in the previous year.

Pro_t before Tax (before exceptional) is higher by 14% at Rs. 364.1 crores due to improved segment profitability of Sugar and Distillery business, especially the latter wherein segment profits have increased substantially by 201% resulting from higher sales volume, much lower procurement cost of Maize and improved operational parameters owing to better feedstock availability.

Further, despite increase in cane price by Rs. 300/MT announced by GoUP for SS 2025-26, the Sugar segment reported an improvement in profitability by Rs. 5.5 crores mainly due to increase in power tariff by ~ Rs. 1/unit w.e.f. April 1, 2024. Also, higher sugar despatches by 10%, improved sugar realisation price by 4% helped in partially mitigating the impact of cane price increase.

The segment profitability of PTB has declined by 5% in line with 8% decline in turnover, however, segment profitability of Water business despite increase in turnover, has declined by 5% as the previous year included substantial project savings recognised for certain projects nearing completion and favorable impact of some legal cases.

Exceptional Item: Pursuant to the notification of the new labour codes by the Government of India, the Company has made a provision of Rs. 14.06 crores towards employee benefit expenses based on the estimated impact of the changes. The said provision has been disclosed as an exceptional item during the current financial year. The Company continues to monitor the developments in this respect including further clarifications from the State / Central Government and will account for such developments, as required.

Pro_t after Tax was at Rs. 258.6 crores as against Rs. 235.5 crores in the previous year.

Sugar business comprises sugar manufacturing operations across 08 Sugar mills, 03 independent Co-generation plants located at two of its Sugar mills, 03 incidental co-generation facilities at three of its sugar mills.

Distillery business comprises 06 Distillery units, all located in the State of U.P. Further, the Distillery segment is engaged in the production of ethanol, Extra Neutral Alcohol and Alcoholic Beverages.

Co-generation plants of the Sugar business source bagasse from the sugar units whereas the distillery plants source molasses and bagasse, to the extent available, from the sugar units. Grain operations at the distillery require procurement of surplus rice from FCI, damaged gains & maize from open market.

Engineering business comprises Power Transmission manufacturing facilities at Mysuru and Water and Waste Water Treatment business operating from Noida, UP.

The turnover in Sugar Segment has increased by 12% due to higher sugar despatches by 10% and improved sugar realisation price by 4% as compared to previous year. Further, in respect of season 2025-26, cane price increased by Rs. 300 /MT resulting in increase in cost of production. However, the effect of aforesaid costs on profitability of the year was partially mitigated by increase in sugar realisation price and sugar sales volume as aforesaid and enhancement of power tariff resulting in a gain of Rs. 31.2 crores including for the retrospective period from April 1, 2024.

The net turnover in Distillery Segment is higher by 5% due to higher alcohol despatches by 6% resulting from higher production by 18% due to better availability of feedstock. In the Ethanol Supply year (ESY) 2025-26, in respect of ethanol to be produced from grains, it was made mandatory that 40% of such ethanol should be produced from surplus rice to be procured from FCI.

Average realisation price is lower due to despatches relating to Ethanol produced from FCI rice, which carries lower realisation price as compared to Ethanol (Maize).

The Profitability of distillery segment has substantially improved due to higher alcohol sales volume, much lower maize procurement cost and improved operational performance owing to better feedstock availability.

The decline in turnover is due to deferment of deliveries by several customers, including due to geopolitical situation toward the end of the last quarter of the year.

Going forward, growth in this business is expected to be driven by international markets as well as defence opportunities. The Company is strengthening its international presence and has established a step-down foreign subsidiary in Switzerland to cater to European customers. It also benefits from competitive efficiencies and a significant cost advantage. Simultaneously, the Company is actively pursuing defence opportunities and expects to secure sizeable orders in the coming year.

This business will be demerged from the Company with effect from April 1, 2026, and transferred to the Resulting Company, Triveni Power Transmission Limited (TPTL), in which the Company will hold an equity stake of approximately 30%.

Order booking during the year was strong with orders of Rs. 467 crores and resultantly, the outstanding order book as on March 31, 2026, stood at Rs. 485 crores, 25% higher than the previous year. It includes long tenure orders of Rs. 247 crores pertaining to Defence.

This business will be demerged from the Company with effect from April 1, 2026, and transferred to the Resulting Company, Triveni Power Transmission Limited (TPTL), in which the Company will hold an equity stake of approximately 30%.

The consolidated results include financial results of wholly-owned subsidiaries, Mathura Wastewater Management Private Limited (MWMPL) & Pali ZLD Pvt. Ltd (Pali). MWMPL is engaged in the execution of a project awarded by National Mission for Clean Ganga (NMCG) under Namami Gange programme for the city of Mathura, UP and Pali is executing a project in Pali (Rajasthan) for a cluster of printing & dyeing units. Both the companies are executing projects under Hybrid Annuity Model.

The turnover of WBG has increased by 15% to Rs. 268.5 crores. However, PBIT has declined by 5% to Rs. 31.0 crores, as previous year was benefited by project cost savings recognised for certain projects nearing completion.

Major changes in the Balance Sheet items are explained as hereunder:

During the year, there have been additions to the extent of

Rs. 213.5 crores (including capitalisation from the opening Capital work in progress). These additions comprise:

• Rs. 132.9 crores incurred for capacity augmentation at Power Transmission business.

• Rs. 58.6 crores in Sugar Segment mainly towards efficiency improvement, including conversion of the 23 MW extraction cum condensing turbine to back pressure turbine at Deoband along with associated equipment, for better steam and bagasse savings.

The Capital work in progress of Rs. 14.0 crores mainly comprise

Rs. 11.6 crores pertaining to Power Transmission Business towards capacity augmentation.

Inventories were higher by 9% at Rs. 2,986.0 crores as on March 31, 2026 as against Rs. 2,737.8 crores in the previous year, primarily due to higher alcohol inventory by 229 lakh litres as well as higher grain inventory by 45,000 MT ensuring cost optimisation and uninterrupted distillery operations.

Trade receivables increased by 8% (Rs. 39.1 crores) to Rs. 551.8 crores as on 31.03.2026. There have been nominal increase in Sugar & Water businesses due to higher month-end despatches and some settlements taking place beyond the year-end.

During the year, other equity increased by Rs. 173.1 crores to

Rs. 3,298.6 crores. This increase was mainly attributed to profit of Rs. 260.6 crores earned during the year, net of final dividend for last year & interim dividend for current year aggregating to

Rs. 87.6 crores.

Total long-term borrowings at the year-end, including current maturities of long-term borrowings, were at Rs. 407.6 crores as against Rs. 428.6 crores as at the end of the previous year. Fresh term loans of Rs. 77.1 crores (including Rs. 51 crores for SSEL) were availed during the year. Repayments were made to the extent of Rs. 98.1 crores during the year.

Around 28% of total outstanding long-term borrowings are at 50% interest subvention.

Short-term borrowings (excluding current maturities of long-term borrowings) were higher at Rs. 1,675.6 crores as on 31.03.2026 as against Rs. 1,462.9 crores as on 31.03.2025. The higher working capital utilisation is due to increased working capital requirement resulting from increase in sugarcane price and higher inventories in respect of ethanol and grain.

Trade payables are lower at Rs. 444.3 crores as on March 31, 2026 as against Rs. 559.5 crores as on March 31, 2025. The decrease is mainly on account of payment of old cane overdues of Rs. 78 crores at Shamli during FY 2025-26.

Indicates favourable ratio movement from previous year Indicates adverse ratio movement from previous year

The Companys diversified operations across multiple sectors expose the Company to a broad spectrum of risks – strategic, operational, environmental, and regulatory. To address these effectively, the Company has implemented a comprehensive Enterprise Risk Management (ERM) framework that is embedded across all business functions and levels.

The ERM framework is designed to:

It covers key risk categories including financial, reputational, compliance, environmental risks, and is tailored to the unique risk profiles of each business vertical.

Certain risks – such as cybersecurity threats, supply chain disruptions, and systemic failures – extend across the entire organisation. Given their potentially serious implications, The Company remains vigilant and proactive. The Company continuously strengthens its security systems and contingency planning to ensure business continuity and operational resilience.

The Board of Directors and the Risk Management Committee play a central role in overseeing the ERM framework. They:

• Regularly review internal and external developments.

• Evaluate the adequacy of existing controls.

• Implement timely countermeasures to safeguard the Companys interests.

The Companys ERM strategy is business specific, dynamic and evolves in response to:

• Changing market conditions.

• Emerging risks and opportunities.

• Shifts in regulatory landscapes.

This approach reinforces the Companys position as a responsible, agile, and future-ready enterprise, committed to protecting stakeholder value and ensuring long-term sustainability.