5.1 Cost of Freehold land includes cost of 43.75 acre (previous year 43.75 acre) of land handed over to Govt. of Odisha against which the alienation process is yet to be completed.

5.2 During the FY 2024-25, the Company had increased the threshold value from Z 5 lakh per unit to Z 10 lakh per unit for machine spares to be recognised as Property, plant and equipment. Being a change in accounting estimates, increase in such value had been accounted for prospectively.

5.3 The Company has two wind power plants (WPP) in the state of Rajasthan and one wind power plant in the state of Maharashtra. Based on the indication from external and internal information to the Company, impairment assessment was carried out for both plants at Rajasthan & one plant at Maharashtra considering as separate CGU.

5.3.1 For WPPs at Rajasthan, the Company had a power purchase agreement (PPA), valid upto 31.03.2019, with Jodhpur Vidyut Vitran Nigam Ltd., Rajasthan. In view of non-existence of fresh PPA from 01.04.2019, generation of power and injection into the Grid without revenue receipt, and considering pending writ petition of the Company before Hon’ble High Court of Rajasthan, impairment assessment was carried out.

5.3.2 The Company has a long term (25 years) PPA with NTPC Vidyut Vyapar Nigam Ltd. (NVVNL) for supply of a minimum of 100 MU per month from its WPP at Sangli, Maharashtra at a rate of Z 2.92/KWh. Considering the quantum of investment made by the Company and the rate considered for the long term PPA, an impairment assessment has been carried out.

Details of wind power plants, investment made, carrying value of the asset (before & after impairment), and impairment provisions made are provided below:

6.1. Amount of capital work in progress includes directly attributable expenses of Z 221.19 crore (previous year Z 207.17 crore) for 5^th Stream Alumina Refinery expansion.

6.2 The Company on 27.09.2017, had awarded a contract favouring M/s Regen Powertech. Pvt. Ltd. (the Agency) for supply, erection and

commissioning of 25.5MW Wind Power Project (WPP) at Kayathar, Tamilnadu for a value of Z 163.13 crore. Agency had executed Z 119.63 crore worth of work till FY 2018-19. Thereafter, there was no progress in execution due to financial crisis and liquidity issue of the agency.

Insolvency resolution process was initiated against the said company under Insolvency and Bankruptcy Code, 2016. The Hon’ble National Company Law Tribunal (NCLT), Chennai passed the Resolution Plan on 01.02.2022 which was not acceptable to the Company. Aggrieved with the order, the Company filed an appeal to the Hon’ble National Company Law Appellate Tribunal (NCLAT). The NCLAT vide its order dated 31.08.2023 allowed the consolidation of CIRP (Corporate Insolvency Resolution Process) setting aside the resolution plan already approved by NCLT. The Company appealed petition was disposed off by NCLAT vide its order dated 10.11.2023 in view of setting aside of earlier resolution plan.

As there is inordinate delay in the resolution process to take the project forward, the Company has considered these as indication for impairment assessment of the project and provided for Z 79.25 crore as on 31.03.2026 (as on 31.03.2025 Z 79.25 crore).

9.1 The Board of Directors in its meeting held on 10.04.2026 has consented for winding up/ striking off of M/s. Utkarsha Aluminium Dhatu Nigam Limited, a joint venture company, the project being commercially unviable. However, clearance in this respect is pending from Ministry of Mines and Department of Investment and Public Asset Management (DIPAM). The Company and Mishra Dhatu Nigam Limited jointly holds 50-50 shares in the Joint Venture.

9.2 The Board of Directors in its meeting held on 16.10.2025 has accorded its in-principle approval to increase the authorised capital of M/s Khanij Bidesh India Limited, one of the joint venture, from ^500 crore to ^1000 crore and alter the existing holding from 40:30:30 to 60:35:5 among the Company (NALCO), M/s. Hindustan Copper Limited and M/s. Mineral Exploration and Consultancy Limited respectively. However, clearance in respect of the above decisions are pending from Ministry of Mines and Department of Investment and Public Asset Management (DIPAM). The Board has also approved additional equity contribution to increase the paid up capital upto ^1000 crore, as and when further equity call is made by M/s.KABIL.

9.3 During the previous year, M/s. GACL-NALCO Alkalies & Chemicals Private Limited (GNAL), a Joint Venture company, had issued Compulsory Convertible Debentures (CCDs) of ^ 500 crore carrying coupon rate at 91 days T bill plus spread of 2.03 % with quarterly reset and having tenure of 60 months.

The Company and M/s Gujarat Alkalies and Chemicals Limited (GACL), the JV partner, entered into an arrangement of backstopping support towards repayment of principal and coupon of Compulsory Convertible Debentures (CCDs) in the proportion of their holding in the JV Company. The Company has 40% of holding in GNAL.

An Option Agreement to this effect has been entered into between promoters (The Company and GACL), M/s PNB Investment Services Ltd (Debenture Trustee) and GNAL (issuer) wherein the sponsors (promoters) have granted mandatory put option and accelerated put option to the investor and retained accelerated buyout option and mandatory buyout option.

The Deemed Investment amount of ^ 147.36 crore (As at 31.03.2025 ^ 147.36) includes, ^ 124.15 crore (As at 31.03.2025 ^ 124.15 crore) towards fair value of Financial Liability against these CCDs and ^ 23.21 crore (As at 31.03.2025 ^ 23.21) towards financial guarantee provided without charging any consideration from the joint venture.

9.4 Cost of Unquoted Equity Instrument has been considered as approprate estimate of fair value because of wide range of possible fair value measurement and cost represent the best estimate of fair value within that range.

10.A.1 The sale of goods (Alumina and Aluminium) is made against either advances received from customers or letter of credit. The advance received from customer is adjusted against sale. The average credit period for sale of wind power is 30 days from the date of metering which is considered as collection period.

10.A.2 The Company has used a practical approach for computing expected credit loss allowance for trade receivables based on a case to case basis.

Since there is no credit period for sale of alumina and aluminium and the sale is either made against an advance or backed by letter of credit (LC) given by customers, no credit loss is expected against such receivables. For sale of wind power, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.

18.3 During the year, the Company has paid final dividend of Z 2.50 per equity share amounting to Z 459.16 crore for FY 2024-25 on October 20^th, 2025. Interim dividend for FY 2025-26 has been paid in two tranches. The first tranche of interim dividend of Z 4.00 per equity share amounting to Z 734.65 crore was paid on December 2^nd, 2025 and the second tranche of interim dividend of Z 4.50 per equity share amounting to Z 826.48 crore was paid on February 24 ^th, 2026. With this, the total dividend pay-out during FY 2025-26 is Z 2,020.29 crore.

The 3 ^rd interim dividend of Z 2.00 per equity share (40% on face value of Z 5/- each) amounting to Z 367.33 crore for the FY 2025-26 has been approved by the Board of Directors at its meeting held on 30^th April, 2026.

(During the preceding year, the Company has paid final dividend of Z 2.00 per equity share amounting to Z 367.33 crore for FY 2023-24 on October 24, 2024. The first tranche of interim dividend of Z 4.00 per equity share amounting to Z 734.65 crore was paid on December 11, 2024 and the second tranche of interim dividend of Z 4.00 per equity share amounting to Z 734.65 crore was paid on March 7, 2025 for FY 2024-25. With this, the total dividend pay-out during FY 2024-25 was Z 1,836.63 crore).

22.1 Liability for Compulsory Convertible Debentures represents the fair value of financial liability for Compulsory Convertible debentures issued by joint venture GACL-NALCO Alkalies & Chemicals Private Limited [refer Note 9.3].

Financial obligation for guarantee represents value towards financial guarantee issued without consideration on behalf of joint venture GACL-NALCO Alkalies & Chemicals Private Limited. [refer Note 9.3]

22.2 The Company receives amount (under the NEFFAR Scheme of the Company, refer note 32.A.3) from the dependent of the employee who died or suffered disability for extending social security to the beneficiaries. Company has sought clarification regarding applicability of Section 73 to 76 of the Companies Act, 2013 from the Ministry of Corporate Affairs, Govt. of India which is still awaited. Based on expert opinion, amount received under the said scheme is not considered as Deposits under the Companies Act, 2013.

22.3 Consequent to introduction of New Labour Codes w.e.f. 21^st November 2025, pending promulgation of rules in this regard, the Company on provisional basis assessed its obligation and provided for ^ 20.30 crore during current financial year. Further, the Company will assess additional financial implications, if any, against these codes and will account for the same, subsequent to promulgation of the related Rules.

Claims against the Company not acknowledged as debt includes:

i. Demand from various statutory authorities towards income tax, sales tax, excise duty, custom duty, service tax, entry tax and other government levies. The Company is contesting the demands before the respective appellate authorities. It is expected that the ultimate outcome of these proceedings will be in favour of the Company and will not have any material adverse effect on the Company’s financial position and results of operation.

ii. Claims of contractors for supply of materials/services pending with arbitration/courts have arisen in the ordinary course of business. The Company reasonably expects that these legal actions will be concluded and determined in favour of the Company and will not have any material adverse effect on the Company’s results of operation or financial position.

iii. Claim from PSUs includes the energy compensation charges and the delayed payment surcharge on the same, since 2005, demanded by Odisha Hydro Power Corporation Limited (OHPC) towards loss of power generation by the Corporation due to drawal of water from the reservoir at Upper Kolab, Koraput by NALCO Refinery at M&R Complex.

iv. The claims against the company under income tax are mostly due to demands raised by the Income Tax department at assessment stage. These claims are on account of multiple issues of disallowances such as disallowance in respect of additional depreciation under section 32(i)(iia), disallowance of peripheral development expenses, provision for non-moving stores and spares, treatment of short term capital gain and not allowing loss under long term capital gain and treating the same as business income, disallowance u/s 14A etc. These matters are sub-judice and pending before various appellate authorities. The Company, including its tax advisors, expect that its position will likely be upheld on the ultimate resolution in view of the decisions already available in favour of the Company by higher appellate forums being CIT(A) / ITAT (Jurisdictional). Thus it will not have a material adverse effect on the Company’s financial position and in the results of operations. Hence, there is no uncertainty in tax treatment which will affect the determination of taxable profit (loss), tax bases, unused tax losses, unused tax credits, and tax rates of the Company.

v. The Government of Odisha vide Orissa Gazette extraordinary notification dated 31-01-2005 had notified "Orissa Rural Infrastructure and SocioEconomic Development Act, 2004 (ORISED Act)" applicable from 01-02-2005, levying tax on mineral bearing land. Constitutional validity of ORISED Act, 2004 was challenged by the Company before Hon’ble Orissa High Court. The Hon’ble Orissa High Court vide its judgement dated 05.12.2005 had struck down the said Act holding that the State Government has no legislative authority to levy tax on minerals. Consequently, the State of Odisha had challenged the judgement of Hon’ble High Court of Orissa before Hon’ble Supreme Court. Subsequently, during the pendency of said appeal, the matter was referred to the Constitution Bench of nine Judges of Hon’ble Supreme Court.

The Constitution Bench of nine Judges of the Hon’ble Supreme Court vide its judgment dated 25-07-2024 held that legislative power to tax mineral rights vests with the State legislature.

Pending final outcome of the appeal pending before Hon’ble Supreme Court against the judgment dated 05.12.2005 of Hon’ble High Court of Orissa, the Company is not in a position to assess any obligation as on 31.03.2026.

28.1 Majority of sales (except sale of power) are against advances or letter of credit. Where sales are made on credit, the amount of consideration does not contain any significant financing component as the payment term is within a year.

28.2 As per the terms of the contract with its customers, either all performance obligations are to be completed within one year from the date of such contracts or the Company has a right to receive consideration from its customers for all completed performance obligations. Accordingly, the Company has availed the practical expedient available under paragraph 121 of Ind AS 115 and dispensed with the additional disclosures with respect to performance obligations that remained unsatisfied (or partially unsatisfied) at the reporting date. Further, the terms of the contracts directly identify the single transaction price for each of the completed performance obligations. There are no elements of transaction price which have not been included in the revenue recognised in the financial statements.

28.3 The Company has not recognised the revenue from its two wind power plants located in the State of Rajasthan due to non execution of fresh Power Purchase Agreement (PPA) since 01.04.2019 and such issue being subjudice before Hon’ble High Court of Rajasthan based on writ petition filed by the Company. Generation of power and injection to grid continues at both the plants. The matter of PPA and pricing has been continuous followed by the Company with the Govt. of Rajasthan for early resolution.

32.A.2 Defined benefit plans

a) Provident fund: The provident fund of the Company is managed by an exempted trust under Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Both the employees and the Company make monthly contributions to the provident fund at a specified percentage of employees salary. The Company contributes major part of the fund to the Trust, which invests the funds in permitted securities as per the statute. The remaining part is contributed to the Government administered Pension Fund.

The Company has an obligation to pay minimum rate of return to the members as specified by Government of India. As per the condition of exemption, the Company shall make good for the deficiency, if any, between the return from the investments of the Trust and the notified interest rate by the Government. The contributions made by the Company and the shortfall of interest, if any, are recognised as an expense in profit and loss under employee benefits expense.

Accordingly the Company has obtained actuarial valuation in accordance with Ind AS 19 and there is no shortfall in the funds managed by the trust as at 31 March 2026 and 31 March 2025. The present value of obligation, the fair value of the plan assets and other key assumptions are summarized below.

b) Gratuity: Gratuity payable to employees under The Payment of Gratuity Act is subject to a maximum of ^ 25,00,000/-. The gratuity scheme is funded by the Company and is managed by a separate trust. The liability for gratuity under the scheme is recognised on the basis of actuarial valuation.

During the current year, gratuity ceiling has been increased from ^ 20,00,000/- to ^ 25,00,000/-. The consequential effects of such increase has been recognised in the books as per actuarial valuation.

c) Post retirement medical benefit: The benefit is available to retired employees and their spouses who have opted for the benefit. Medical treatment as an in-patient can be availed from the Company’s hospital/Govt. Hospital/ hospitals as per company’s rule. They can also avail treatment as out patient subject to maximum ceiling of expenses fixed by the Company. The scheme is funded by the Company and is managed by a separate trust. The liability under the scheme is recognised on the basis of actuarial valuation and funded to the Trust.

d) Settling-in-benefit: On superannuation/retirement/termination of service, if opted for the scheme, the transfer TA is admissible to the employees and / or family from the last head quarters to the hometown or any other place of settlement limited to distance of home town. Transport of personal conveyance shall also be admissible. The liability for the same is recognised on the basis of actuarial valuation.

e) NALCO Benevolent Fund Scheme : The objective of the scheme is to provide financial assistance to families of the members of the scheme who die while in employment of the Company. As per the scheme there will be contribution by members @ ^ 30/- per member per death, in the event of death of a member while in the service of the company and matching contribution is made by the Company. The liability for the same is recognised on the basis of actuarial valuation.

f) NALCO Retirement Welfare Scheme : The objective of the scheme is to provide financial assistance as a gesture of goodwill as post retirement support to employees retiring from the services of the company. As per the scheme the recovery from each employee member would be ^ 10/- per retiring member. The Company would provide equivalent sum as matching contribution. The liability for the same is recognised on the basis of actuarial valuation.

g) Superannuation gift scheme: The objective of the scheme is to recognise the employees superannuating or retiring on medical ground from the services of the Company. The scheme includes a gift item worth of ^ 25000/- per retiring employees to be presented on superannuation/ retirement. The liability for the same is recognised on the basis of actuarial valuation.

h) Post retirement honour scheme: The scheme has been introduced to honour the superannuated employees who have attained the age of 70/75/80/85/90/95/100 years. The scheme provides honour amount ranging from ^ 45,000/- to ^ 1,90,000/- for each eligible employees based on attaining the corresponding age. The liability for the same is recognised on the basis of actuarial valuation.

32.A.3 Other long term employees benefits

a) Compensated absences : The accumulated earned leave, half pay leave & sick leave is payable on separation, subject to maximum permissible limit as prescribed in the leave rules of the Company. During the service period encashment of accumulated leave is also allowed as per the Company’s rule. The obligation is funded by the Company and is managed by a separate trust. The liability for the same is recognised on the basis of actuarial valuation and is funded to the Trust.

b) Long Service Reward : The employee who completes 25 years of service are entitled for a long service reward which is equal to one month basic pay and DA. The liability for the same is recognised on the basis of actuarial valuation.

c) NEFFARS : NEFFARS stands for ”Nalco Employees’ Family Financial Assistance Rehabilitation Scheme”. In the event of disablement/death, on deposit of prescribed amount as stipulated under the scheme, the Company pays monthly benefit to the employee/ nominee at their option up to the date of notional superannuation. The liability for the same is recognised on the basis of actuarial valuation.

The employee benefit plans typically expose the Company to risks such as actuarial risk, investment risk, interest risk, longevity risk and salary risk:-

i. Actuarial risk: It is the risk that employee benefits will cost to the Company more than expected. This can arise due to one of the following reasons:

a. Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

b. Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

c. Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

ii. Investment risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

iii. Interest risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

iv. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

v. Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants beyond assumed plan will increase the plan’s liability.

36 - Segment information

36.1 Products from which reportable segments derive their revenues

Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and assessment of segment performance focuses on the types of goods delivered. The directors of the company have chosen to organise the Company around differences in products. No reporting segment have been aggregated in arriving at the reportable segments in the Company. Specifically, the Company’s reportable segment under Ind AS 108- Operating Segments are as follows:

i) Chemical segment

ii) Aluminium segment

The Company has considered Chemicals and Aluminium as the two primary operating business segments. Chemicals include Calcined Alumina, Alumina Hydrate and other related products. Aluminium includes Aluminium ingots, wire rods, billets, strips, rolled and other related products. Bauxite produced for captive consumption for production of alumina is included under chemicals and power generated for captive consumption for production of Aluminium is included under Aluminium segment. Wind Power Plant commissioned primarily to harness the potential renewable energy sources is included in the unallocated Common segment.

38.2 Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks.

The objectives of the Company’s risk management policy are, inter-alia, to ensure the following:

i) Sustainable business growth with financial stability;

ii) Provide a strategic framework for Company’s risk management process in alignment with the strategic objectives including the risk management organisation structure;

iii) That all the material risk exposures of Company, both on and off-balance sheet are identified, assessed, quantified, appropriately mitigated and managed and

iv) Company’s compliance with appropriate regulations, wherever applicable, through the voluntary adoption of international best practices, as far as may be appropriate to the nature, size and complexity of the operations.

The risk management policy is approved by the board of directors. The Internal Control Team would be responsible to evaluate the efficacy and implementation of the risk management system. It would present its findings to the Audit Committee every quarter. The Board is responsible for the Company’s overall process of risk management. The Board shall, therefore, approve the compliance and risk management policy and any amendments thereto, and ensure its smooth implementation.

38.3 Market risk

Market risk is the risk of any loss in future earnings (spreads), in realizable fair values (economic value) or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, liquidity and other market changes. The Company may also be subjected to liquidity risk arising out of mismatches in the cash flows arising out of sales proceeds and funds raised and loan repayments/prepayments. Future specific market movements cannot be normally predicted with reasonable accuracy.

38.4 Foreign currency risk management

Foreign currency risk emanates from the effect of exchange rate fluctuations on foreign currency transactions. The overall objective of the currency risk management is to protect the Company’s income arising from changes in foreign exchange rates. The policy of the Company is to avoid any form of currency speculation. Hedging of currency exposures shall be effected either naturally through offsetting or matching assets and liabilities of similar currency, or in the absence of thereof, through the use of approved derivative instruments transacted with reputable institutions. The Currency risk is measured in terms of the open positions in respective currencies vis-a-vis the Company’s operating currency viz. INR. A currency gap statement shall be prepared to find the gap due to currency mismatch.

The fluctuation in foreign currency exchange rates may have impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective consolidated entities. The Company undertakes transactions denominated in foreign currency; consequently, exposures to exchange rate fluctuations arise. Exchange rate are managed within approved policy parameters utilising forward foreign exchange contracts.

38.4.1 Foreign currency sensitivity analysis

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.

The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 10%.

The following analysis is based on the gross exposure as of the relevant balance sheet dates, which could affect the income statement. There is no exposure to the income statement on account of translation of financial statements of consolidated foreign entities.

38.5 Other price risks

38.5.1 Equity price sensitivity analysis

The Company is not exposed to equity price risk arising from equity instruments as all the equity investments are held for strategic rather than trading purposes.

38.6 Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. There is no significant credit exposure as advance collection from customer is made.

Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as loans and receivables, trade receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of credit risks.

38.7 Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

Company has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long-term funding liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and financial liabilities.

1. The Company does not have any borrowings/debt except bill discounting (refer Note 20).

2. The variation in ratios over the previous year is attributable to higher net profit resulting from higher realisation and decrease in major raw material prices.

3. The trade receivable turnover ratio has been computed considering the sale and rececivable of the Wind Power only.

42 - Regrouping of previous year’s figures

Previous year’s figures have been regrouped/rearranged wherever considered necessary to make them comparable.