Shree Renuka Sugars Ltd Management Discussions

Economy Overview Industry Overview

Indian Economy and Outlook 1 Global Sugar Market 3

India continued to strengthen its position as one of the fastest-growing major economies, supported by resilient domestic demand, healthy agricultural output, sustained public capital expenditure and improving industrial activity. Real GDP is estimated to have grown by 7.7% in FY 2025-26, compared to 7.1% in the previous year, reflecting broad-based economic momentum. Inflation remained well contained, with the Consumer Price Index (CPI) easing to 3.40% 2 under the revised 2024 base year, supported by stable food prices and prudent monetary policy. Government initiatives, including the Production Linked Incentive (PLI) schemes, infrastructure investments and ongoing GST rationalisation, continued to strengthen manufacturing and private consumption, while progress in trade negotiations with key economies is expected to further enhance Indias integration into global value chains.

Going forward, India is expected to remain among the worlds fastest-growing major economies, with real GDP projected to grow by around 6.6% in FY 2026-27. Growth is likely to be supported by continued government capital expenditure, improving private consumption, healthy credit growth and ongoing structural reforms aimed at enhancing the ease of doing business. With inflation expected to remain within the Reserve Bank of Indias target range, the monetary policy environment is anticipated to remain supportive of investment and economic expansion, despite continued geopolitical uncertainties and global trade-related challenges.

Market Snapshot

Global Sugar Production (MMT)

Source: International Sugar Organization (ISO), Quarterly Market Outlook, May 2026.

The global sugar market continued to experience significant shifts during 2025-26, influenced by weather conditions, production trends across major producing countries, evolving trade flows and changing energy market dynamics. After recording a global sugar deficit of approximately 3.2 million tonnes in 2024-25, the International Sugar Organization (ISO) projects the global sugar market to return to a surplus of around 2.2 million tonnes in 2025-26, primarily driven by higher production in Brazil and the recovery in output across several producing regions. Global sugar consumption is estimated at approximately 179.8 million tonnes , reflecting continued resilience in demand despite economic uncertainties. The global stock-to-use ratio is expected to improve modestly to 44.2% , although inventories remain close to their lowest levels in over a decade, indicating that the market remains vulnerable to weather-related supply disruptions.

Market Dynamics

Brazil continued to maintain its position as the worlds largest sugar producer and exporter, with Centre-South production remaining the principal determinant of global sugar availability. The allocation of sugarcane between sugar and ethanol production continued to be influenced by international sugar prices, crude oil prices and domestic ethanol demand, making Brazils production mix a key factor influencing global market sentiment. At the same time, production in other major sugar-producing countries, including India, Thailand and the European Union, remained sensitive to climatic conditions, particularly the impact of changing weather patterns on sugarcane and sugar beet yields.

Source: International Sugar Organization (ISO), Quarterly Market Outlook, May 2026.

Global sugar prices remained volatile during the year, reflecting the interplay of supply expectations, energy markets and macroeconomic developments. While the projected surplus moderated concerns regarding immediate supply tightness, uncertainty surrounding weather conditions in major producing regions, evolving trade policies and fluctuations in crude oil prices continued to influence market movements. The ISO observed that the balance between production and consumption remains relatively tight by historical standards, suggesting that even modest disruptions to production could have a meaningful impact on global prices.

jQ Weather Variability	t Brazilian Cane Allocation	0 Resilient Global Consumption	E Global Inventory Levels	dj Trade Flows & Policy Developments	a Energy & Ethanol Economics
Weather conditions across major sugar-producing regions continue to influence crop yields and overall sugar production, making global supply susceptible to climatic disruptions.	Brazils allocation of sugarcane between sugar and ethanol production remains a key determinant of global sugar availability and export supply.	Global sugar consumption continues to demonstrate resilience despite macroeconomic uncertainties, supporting stable long-term demand fundamentals.	Although the global stock-to-use ratio is expected to improve, inventories remain close to their lowest levels in over a decade, leaving the market vulnerable to supply disruptions.	Evolving trade policies and changing export-import dynamics among major producing countries continue to influence global sugar availability and pricing.	Fluctuations in crude oil prices and domestic ethanol demand, particularly in Brazil, continue to influence sugar production economics and market pricing.

Market Outlook

Looking ahead, the medium-term outlook for the global sugar market remains constructive. Structural growth in consumption, particularly across emerging economies, continued demand for ethanol in key producing countries and increasing focus on

renewable energy are expected to support the longterm fundamentals of the industry. However, climate variability, geopolitical developments, changing trade policies and volatility in energy markets are expected to remain important factors influencing global sugar production, trade flows and pricing dynamics.

The Indian sugar industry demonstrated resilience during Sugar Season (SS) 2025-26 despite weather- related challenges across key sugarcane-growing regions. Erratic rainfall and lower sugar recovery in parts of Maharashtra and Karnataka impacted production during the latter half of the season. Consequently, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) revised its production estimate for SS 202526 to approximately 320 lakh tonnes, compared with its initial estimate of over 340 lakh tonnes. Despite the downward revision, domestic sugar availability remained adequate to meet consumption requirements while supporting the Ethanol Blended Petrol (EBP) Programme and approved export commitments.

Production Drivers

Key Production Drivers	Impact
Weather-related challenges	Lower sugarcane availability
Erratic rainfall	Reduced crop productivity
Lower sugar recovery	Decline in sugar output
Maharashtra & Karnataka	Production impacted during the latter half of the season

Indias annual sugar consumption continues to remain robust at around 290 lakh tonnes, supported by favourable demographics, rising disposable incomes and sustained demand from the food processing, beverage and hospitality sectors. In addition to domestic consumption, sugar diversion towards ethanol has emerged as a structural demand driver, improving the overall balance of the industry and providing greater flexibility in managing surplus production. During the season, sugar exports were permitted in a calibrated manner to balance domestic availability with international trade opportunities.

Supply-Demand Balance

The industry entered Sugar Season 2026-27 with one of the lowest opening stock positions in recent years, reflecting two consecutive years of relatively tight supply and continued diversion of sugar towards ethanol. The resulting favourable demand- supply balance supported a steady strengthening in domestic sugar prices, with ex-mill prices reaching around Rs.43 per kg during July 2026. Although industry estimates indicate a recovery in sugar production during SS 2026-27 on the back of favourable monsoon conditions, improved cane acreage and better crop prospects, domestic inventories are expected to remain at prudent levels, supporting price stability and healthy industry fundamentals. ISMA has consistently emphasised that India has adequate sugar availability to meet domestic requirements while maintaining orderly market conditions.

Domestic	Ethanol
Consumption \u2022 290 lakh tonnes	\u2022 Structural Demand
\u2022 Food Processing
\u2022 Beverages \u2022 Hospitality	\u2022 E20 Programme

Outlook

Looking ahead, the long-term outlook for the Indian sugar industry remains positive. The successful implementation of the E20 blending programme has transformed the industry into an integrated sugar and bioenergy sector, creating diversified revenue streams and reducing dependence on cyclical sugar prices. Continued policy support for ethanol blending, gradual rollout of flex-fuel vehicles, increasing utilisation of renewable energy and sustained investments in agricultural productivity are expected to strengthen the sectors long-term competitiveness. Companies with integrated operations, diversified product portfolios and strong operational capabilities are expected to be well positioned to capitalise on these structural growth opportunities while effectively managing market volatility.

Reduce crude oil imports Lowers GHG emissions

Jl.y Ethanol Diversify sugar mill revenues

^ Matters

Improve farmer incomes Enhance energy security

Indias ethanol industry has undergone a structural transformation over the past decade and has emerged as one of the key pillars of the countrys energy transition strategy. The successful achievement of the 20% ethanol blending target (E20) has established India as one of the worlds leading biofuel markets, significantly reducing dependence on imported crude oil, lowering greenhouse gas emissions and creating a sustainable value chain for the agriculture and sugar sectors. The Ethanol Blended Petrol (EBP) Programme has diversified the revenue streams of sugar mills and grain-based distilleries, strengthened farmer incomes and enhanced the countrys energy security.

The Ethanol Supply Year (ESY) 2025-26 witnessed another year of strong procurement by Oil Marketing Companies (OMCs). Against contracted quantities of approximately 862 crore litres, cumulative ethanol supplies had crossed 615 crore litres by the end of May 2026, representing around 71% of the contracted volume. Grain-based ethanol continued to account for the largest share of supplies, contributing approximately 405 crore litres (66%), while sugarcane- based feedstocks contributed around 210 crore litres (34%). Within the grain segment, maize emerged as the largest feedstock, supplying approximately 225 crore litres, followed by surplus food grains at around 146 crore litres. Among sugar-based feedstocks, ethanol produced from sugarcane juice accounted for approximately 138 crore litres, B-heavy molasses around 63 crore litres, and C-heavy molasses approximately 9 crore litres. This diversified feedstock mix has enhanced the resilience of Indias ethanol programme while ensuring year-round supplies to OMCs.

The increasing contribution of grain-based ethanol has complemented the sugar industrys pivotal role in the EBP Programme by broadening the feedstock basket and reducing dependence on seasonal sugar production. At the same time, ethanol produced from sugarcane juice and B-heavy molasses continues to provide an effective mechanism for diverting surplus sugar, thereby improving sugar price stability, strengthening mill liquidity and facilitating timely payments to sugarcane farmers. ISMA has consistently advocated a balanced procurement framework that encourages participation from both grain-based and sugar-based distilleries, recognising that a diversified feedstock strategy is essential for ensuring feedstock security, maintaining supply reliability and supporting the long-term sustainability of the biofuel programme.

The next phase of Indias ethanol transition is expected to be driven by the gradual introduction of flex- fuel vehicles (FFVs) and higher ethanol blends. The launch of Indias first flex-fuel passenger vehicles and two-wheelers, together with the rollout of E85 fuel at select retail outlets, represents an important milestone in expanding ethanol consumption beyond conventional E20 blending. Flex-fuel vehicles are capable of operating on a wide range of ethanol-petrol blends, including E20, E85 and E100, providing greater flexibility to consumers while creating a new avenue for ethanol demand. As automobile manufacturers expand their flex-fuel product portfolio and fuel retailers progressively develop dispensing infrastructure for higher ethanol blends, ethanol consumption is expected to become increasingly market-driven rather than solely dependent on mandatory blending targets.

This transition is expected to create sustained longterm demand for both grain-based and sugarcane- based ethanol, encouraging further investments in production capacity, feedstock development and supply chain infrastructure.

Outlook

Looking ahead, the long-term outlook for Indias ethanol industry remains highly favourable. Continued Government support for renewable fuels, sustained procurement by OMCs, expanding distillation capacity, increasing availability of multiple feedstocks and the gradual adoption of flex-fuel vehicles are expected to strengthen Indias biofuel ecosystem. The complementary role of grain-based and sugar- based ethanol will remain critical in ensuring feedstock security, optimising resource utilisation and supporting

Indias long-term objectives of enhancing energy security, reducing crude oil imports, lowering carbon emissions and improving rural prosperity. As the industry evolves beyond E20, Indias integrated sugar and bioenergy sector is well positioned to play a pivotal role in the countrys low-carbon energy transition.

Government Initiatives

The Government of India has continued to implement a comprehensive policy framework aimed at transforming the sugar industry into an integrated bioenergy sector while ensuring a balanced approach towards farmer welfare, consumer interests and national energy security. The Ethanol Blended Petrol (EBP) Programme remains the cornerstone of this transformation, with the successful achievement of 20% ethanol blending (E20) creating a stable and long-term demand for ethanol. The Government has also continued to provide assured procurement by Oil Marketing Companies (OMCs), periodic revisions in administered ethanol procurement prices and a multifeedstock approach that enables ethanol production from sugarcane juice, B-heavy molasses, C-heavy molasses, maize and surplus food grains, thereby enhancing feedstock flexibility and supply security.

To support the next phase of the biofuel programme, the Government has initiated the rollout of flex-fuel vehicles (FFVs) and higher ethanol blends such as E85 and E100 for compatible vehicles. These initiatives, coupled with the gradual expansion of fuel dispensing infrastructure, are expected to create structural growth in ethanol demand beyond mandatory blending levels and encourage further investments across the biofuel value chain.

The Government has also strengthened support for farm mechanisation and sustainable agriculture by promoting the adoption of sugarcane harvesters and modern farm equipment through various subsidy and credit-linked schemes, helping address labour shortages, improve harvesting efficiency and reduce cane losses. Simultaneously, continued emphasis on micro-irrigation under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) is encouraging efficient water use, improving irrigation coverage and enhancing sugarcane productivity, thereby supporting the long-term sustainability of cane cultivation.

Recognising the potential of agricultural residues and by-products, the Government continues to promote Compressed Biogas (CBG) under the SATAT initiative and the National Bioenergy Programme, providing financial support for the establishment of CBG plants and facilitating the utilisation of press mud,

spent wash, sugarcane trash and other biomass for renewable gas production. These initiatives enable sugar mills to convert waste streams into value-added products, diversify revenue sources and contribute to a circular economy. In parallel, the Pradhan Mantri JI-VAN Yojana continues to encourage investments in advanced and second-generation (2G) biofuel technologies, accelerating the commercialisation of renewable fuels derived from agricultural residues.

Collectively, these policy initiatives are expected to strengthen the competitiveness of the Indian sugar and bioenergy industry by improving farm productivity, enhancing resource efficiency, encouraging value addition from by-products and supporting investments across the ethanol, renewable energy and biofuels value chain. Over the long term, these measures are expected to contribute to higher farmer incomes, improved energy security, reduced greenhouse gas emissions and the development of a resilient, integrated and sustainable bioeconomy.

Company Overview

Shree Renuka Sugars Limited is one of Indias leading integrated sugar and green energy companies, with a strong presence across the sugar, ethanol and power value chain. Headquartered in Belagavi, Karnataka, the Company operates six sugar mills with integrated capabilities for ethanol production and power co-generation, supported by a diversified manufacturing footprint across key sugarcane-growing regions.

The Company is among the largest sugar refiners, with two major port-based refineries in Gujarat and West Bengal, which enables it to cater to both domestic and international markets, with a strong export orientation. It is also a significant contributor to Indias renewable energy ecosystem, with cogeneration capacity exceeding 240 MW and exportable surplus power, enhancing operational efficiency and sustainability.

In line with Indias accelerated ethanol blending programme, the Company has significantly expanded its ethanol production capacity to 1,250 KLPD, supported by continuous investments in distillery expansion and process optimisation. The Company produces multiple grades of ethanol catering to fuel, industrial and potable segments and remains a key supplier to oil marketing companies under the EBP programme.

With its integrated business model spanning sugar, ethanol, refining and green power, along with strong export capabilities and increasing ethanol focus, the

Company is well positioned to benefit from structural shifts in the global sugar and biofuel markets.

Segment-wise Highlights

The Companys business model is built around an integrated sugar, refining, ethanol, renewable energy and engineering platform. During FY 2025-26, performance across segments reflected the impact of a challenging operating environment, while the Company continued to focus on capacity utilisation, portfolio diversification, cost discipline and long-term sustainability.

Sugar Milling

The Company operates an integrated sugar manufacturing business with an aggregate crushing capacity of 37,500 tonnes of cane per day across its facilities. During FY 2025-26, the sugar milling business generated revenue of ^11,650 million, supported by stable crushing operations, improved cane availability and continued focus on operational efficiency. The segment remains a core part of the Companys integrated sugar and bioenergy value chain, providing the operating base for downstream opportunities in ethanol and renewable energy.

Sugar Refining

The Company is among the worlds leading sugar refiners, with two strategically located port-based refineries at Kandla, Gujarat and Haldia, West Bengal, serving both domestic and export markets. During FY 2025-26, the sugar refining business remained the largest contributor to revenue, generating Rs.61,022 million. The segments scale, port-based footprint, established customer relationships and distribution network continue to support the Companys position in the refining market.

Ethanol

The Company is one of Indias leading ethanol producers, with an installed production capacity of 1,250 KLPD and a business model aligned with the Government of Indias Ethanol Blending Programme. During FY 2025-26, the ethanol segment generated revenue of Rs.9,233 million. The segment supports revenue diversification and strengthens the Companys participation in Indias renewable fuels ecosystem.

Renewable Energy

The Company leverages bagasse generated during sugar manufacturing to produce renewable power through its integrated co-generation facilities. During FY 2025-26, the renewable energy business generated revenue of Rs.669 million, contributing to resource optimisation and reinforcing the Companys commitment to sustainable operations and energy efficiency.

Engineering, Procurement & Construction (EPC)

SRSLs engineering and EPC segment is managed through its wholly owned subsidiary, KBK Chem- Engineering Private Limited. KBK is an EPC solution and technology providers for distilleries, bio-ethanol, brewery, sugar, chemical processing and co-generation plants, and also provides water and wastewater solutions. The Groups engineering segment generated revenue of Rs.1,079 million during FY 2025-26, compared to Rs.1,126 million in the previous year.

Trading

The trading business complements the Companys integrated operations through domestic and international trading of sugar and allied products. During FY 2025-26, the segment generated revenue of Rs.1,410 million, supported by the Companys market relationships, sourcing capabilities and global trading network.

Financial Performance Review

Profit and Loss Statement

The Company reported revenue from operations of Rs.85,220 million during FY 2025-26, compared to Rs.102,794 million in FY 2024-25, reflecting lower sales realisations and subdued operating conditions during the year. Loss before tax increased to Rs.7,802 million during FY 2025-26 from Rs.3,036 million in FY 2024-25, while loss after tax stood at Rs.6,989 million as compared to Rs.2,558 million in the previous year. The increase in losses was primarily driven by lower sugar production attributable to reduced cane availability and pressure on refining margins. The challenging operating environment also impacted overall profitability through reduced absorption of fixed costs across the Companys integrated operations.

Management continues to focus on improving operating efficiencies, optimising product mix, enhancing capacity utilisation, strengthening working capital discipline and increasing the contribution of value-added businesses such as ethanol by keeping it ready for higher blends & flex fuel adoption, and green energy businesses.

Balance Sheet

The Companys net worth stood at Rs.(12,455) million as at 31 March 2026 as compared to Rs.(3,905) million as at 31 March 2025. The reduction in net worth was primarily attributable to losses incurred during the year, resulting in a further impact on accumulated reserves and surplus.

Management remains focused on restoring profitability through operational improvements, improved capacity utilisation, optimisation of financing and operating costs, enhanced cash generation and value maximisation across the integrated sugar, refining, ethanol and renewable energy businesses. The Company continues to pursue measures aimed at strengthening its financial position and exploring potential deleveraging initiatives.

Working Capital Management

Current assets stood at Rs.28,827 million as at 31 March 2026 compared to Rs.38,669 million as at 31 March 2025, reflecting lower inventory and receivable levels. The current ratio stood at 0.58 as at 31 March 2026 compared to 0.69 in the previous year, reflecting continued liquidity pressures arising from the challenging operating environment and lower profitability. The Company continues to maintain a strong focus on liquidity preservation through rigorous working capital management, optimisation of inventory levels, tighter receivables management, prudent capital expenditure, enhanced cash flow monitoring and disciplined cost control measures.

Management remains focused on improving cash generation and strengthening the overall liquidity profile of the business while supporting operational continuity and future growth opportunities.

While FY 2025-26 remained a challenging year from a financial performance perspective, the Company continues to benefit from a diversified and integrated business model spanning sugar manufacturing, refining, ethanol and renewable energy. Managements strategic priorities remain focused on restoring profitability, strengthening liquidity, improving asset utilisation, enhancing cash generation and increasing the contribution of higher value-added businesses. The Company believes that the long-term fundamentals of the sugar and bioenergy sectors, together with its integrated operating platform and strategic manufacturing footprint, provide a strong foundation for sustainable value creation over the medium to long term.

Business Outlook

The long-term outlook for Shree Renuka Sugars Limited remains positive, supported by favourable industry fundamentals, a resilient domestic market and the continued evolution of Indias sugar and bioenergy ecosystem. The Companys integrated business model, spanning sugar manufacturing, refining, ethanol production, renewable power generation and branded consumer products across India, positions it well to capitalise on emerging opportunities while effectively managing commodity and market cycles.

Going forward, the Company will continue to focus on enhancing operational efficiency, improving sugar recovery, optimising the product mix across sugar, ethanol and renewable power, and maximising value from every component of the sugarcane value chain. The continued expansion of Indias ethanol blending programme, increasing adoption of flex-fuel vehicles, growing demand for renewable fuels and sustained policy support for bioenergy are expected to create structural growth opportunities for the integrated sugar industry. The Company will also continue to strengthen its leadership in sugar refining and branded sugar while expanding customer relationships across domestic and international markets.

As part of its value creation strategy, the Company is actively exploring opportunities to unlock greater value from by-products through the development of value- added and sustainable businesses. In particular, the utilisation of press mud for the production of organic and bio-based fertilisers represents a significant opportunity to convert a by-product into a high-value agricultural input. Such initiatives are aligned with the principles of the circular economy by promoting efficient resource utilisation, improving soil health, supporting sustainable farming practices and creating additional revenue streams. Together with ethanol, renewable power, molasses and other bio-based

products, these initiatives reinforce the Companys strategy of maximising value from the entire sugarcane value chain while contributing to environmental sustainability and enhanced farmer prosperity.

The Company remains committed to prudent capital allocation, disciplined risk management, digital transformation and sustainable business practices. Continued investments in process optimisation, energy efficiency, water conservation, farm productivity, mechanisation and value-added products are expected to enhance competitiveness and improve long-term resilience. The Company will also continue to evaluate emerging opportunities across the bioenergy and bio-products value chain that complement its core competencies and strengthen long-term shareholder value.

Backed by a diversified business portfolio, strong manufacturing capabilities, global market presence and a clear strategic focus on operational excellence, innovation and sustainability, Shree Renuka Sugars Limited is well positioned to deliver sustainable growth and create long-term value for its shareholders, customers, farmers, employees and the communities in which it operates. The Company remains committed to supporting Indias energy transition, strengthening rural livelihoods and advancing the development of a resilient, integrated and low-carbon bioeconomy.

Risk Management

Shree Renuka Sugars Limited has established a comprehensive enterprise risk management framework designed to identify, assess, mitigate and monitor risks that could impact the achievement of its strategic, operational, financial and sustainability objectives. Given the Companys integrated presence across sugar manufacturing, refining, ethanol production, renewable energy and international trade, effective risk management remains a critical element of business planning and decision-making.

The Companys risk management approach focuses on strengthening business resilience through periodic risk assessments, scenario analysis, internal controls, policy oversight and continuous monitoring of the external environment. Risks are evaluated based on their likelihood and potential impact, and mitigation measures are reviewed periodically to ensure their continued effectiveness.

The key risks monitored by the Company include commodity price volatility, cane availability, weather-related risks, regulatory changes, export and import policy developments, liquidity and working capital management, foreign exchange exposure, operational disruptions, climate-related risks and environmental, health and safety compliance. These risks are reviewed periodically, with mitigation measures aligned to business priorities and the evolving external environment.

Oversight of risk management practices is vested with the Risk Management Committee, which includes the Managing Director & CEO, the Executive Director, the Chief Financial Officer and Mr. Dorab Mistry, an eminent commodity market expert. The Committee periodically reviews key risk exposures, mitigation plans and the effectiveness of the Companys risk management framework and provides strategic guidance to ensure alignment with the Companys business objectives.

The Companys risk management framework continues to evolve in response to changing market conditions, regulatory developments, emerging technologies, climate-related factors and stakeholder expectations. Management remains committed to fostering a strong risk-aware culture and integrating risk considerations into key business decisions and longterm strategic planning.

To get more information on Risk Management, please refer to the Corporate Governance Report.

Human Resource (HR)

People remain at the heart of the Companys growth strategy. During the year, the Company continued to strengthen its people practices through strategic investments in talent management, leadership development, capability building, performance management and employee engagement, fostering a high-performance culture aligned with its business objectives. The Company was recognised as a Great Place To Work® for the third consecutive year and earned recognition among Indias Best Workplaces in Manufacturing and Indias Best Workplaces in FMCG.

The Company enhanced employee capabilities through structured learning initiatives, technical and behavioural development programmes, digital learning platforms, leadership interventions and organisationwide wellness initiatives. Continued emphasis was placed on employee well-being, workplace safety, diversity, inclusion and creating opportunities for professional growth.

The Company further accelerated its HR transformation journey through digital HR solutions, data-driven people analytics and strengthened workforce planning practices. Technology-enabled initiatives across learning, performance management, employee feedback and talent development improved decisionmaking, organisational effectiveness and the readiness of the workforce to support sustainable business growth.

Further details on the Companys human capital initiatives, employee development programmes and workplace practices are provided in the Human Resource section of the Non-Statutory Report.

Environment, Social and Governance Initiatives

Sustainability remains integral to the Companys integrated business model, with environmental stewardship, responsible business practices and stakeholder engagement embedded across its operations. The Company continues to focus on improving resource efficiency, promoting circularity and strengthening governance practices while creating long-term value for shareholders, employees, farmers, customers and local communities.

On the environmental front, the Company continues to maximise the utilisation of sugarcane by-products through bagasse-based renewable power generation, ethanol production and organic manure, while implementing initiatives relating to water conservation, waste management and resource optimisation. During FY2025-26, the Company generated 352 Mn kWh of renewable energy, recycled 941.82 Mn litres of water and planted 54,366 trees as part of its environmental stewardship initiatives.

The Companys social initiatives remain focused on strengthening farmer partnerships, supporting community development and fostering employee well-being, while its governance framework is guided by ethical business conduct, robust internal controls, regulatory compliance and effective Board oversight.

Further details on the Companys ESG strategy, sustainability initiatives and governance framework are provided in the Environment, Governance and Sustainability sections of the Non-Statutory Report.

Internal Control Systems and their adequacy

The Company has implemented robust internal control mechanisms to ensure compliance with applicable laws and regulations, safeguard its assets and maintain the reliability of financial reporting. A strong internal control environment is fundamental to promoting efficient operations, effective risk management and ethical business conduct.

The internal control framework comprises well- defined policies, procedures and guidelines that provide comprehensive oversight across financial reporting and key operational areas. The organisational structure clearly delineates roles and responsibilities, enabling accountability and enhancing transparency in decision-making.

The control environment is further strengthened through practices such as segregation of duties, controlled access to systems and periodic review processes, which collectively support the integrity of financial reporting. The Audit Committee plays a critical oversight role by continuously monitoring the effectiveness of internal controls and apprising the Board of Directors on a regular basis.

Cautionary Statement

Some information in this Report may contain forward looking statements which include statements regarding the Companys expected financial position and results of operations, business plans and prospects etc. and are generally identified by forward-looking words such as believe, plan, anticipate, continue, estimate, expect, may, will or other similar words. Forward looking statements are dependent on assumptions or basis underlying such statements. The Company has chosen these assumptions or basis in good faith, and it believes that they are reasonable in all material respects. However, it cautions that actual results, performances or achievements could differ materially from those expressed or implied in such forwardlooking statements. The Company undertakes no obligation to update or revise any forward-looking statement, whether because of new information, future events, or otherwise.