Your Directors are pleased to present the 79^th Annual Report in the form of Seventh Integrated Report of our Company along with the Audited Financial Statements for the year ended 31^st March 2026.

Financial Performance

The financial performance of our Company for the year ended 31^st March 2026 is summarised below:

Dividend

Based on our Company’s performance, your Directors have recommended a dividend of 500% at the rate of I 10 per equity share of face value of I 2 each (on fully paid-up shares and on partly paid-up shares in proportion to their share in the paid-up share capital) for the year ended 31^st March 2026.

The dividend, if approved by the Members, would involve a cash outflow of ~ I 680.61 crore.

In terms of the provisions of the Income-Tax Act, 2025, dividend shall be taxable in the hands of shareholders at applicable rate of taxes. Our Company shall withhold tax at source appropriately for applicable cases.

The recommended dividend is in line with our Company’s Dividend Distribution Policy which is available on the Company’s website at: https://www.arasim.com/upload/ pdf/Grasim Dividend Policy 16.pdf

Transfer to Reserves

The Board of Directors (‘the Board’) of the Company has decided not to transfer any amount to the General Reserves, for the year ended 31^st March 2026.

Performance Review

On a consolidated basis, the revenue from operations for FY 2025-26 stood at I 1,75,430.74 crore registering a growth of 18.15 % as compared to the previous year of I 1,48,477.89 crore. The Consolidated EBITDA stood at I 25,872.09 crore for FY 2025-26, which was I 20,023.13 crore in the previous year. The Consolidated PAT attributable to owners is I4,966.48 crore for FY 2025-26, which was I 3,705.68 crore in the previous year.

On a standalone basis, revenue from operations for FY 2025-26 stood at I 41,039.48 crore registering a growth of 30.02%, as compared to I 31,563.23 crore in the previous year. The standalone EBITDA is I 3,558.43 crore for FY 2025-26, which was I 2,856.58 crore in the previous year. The standalone PAT is I 348.39 crore for FY 2025-26, which was I 212.10 crore in the previous year.

Strategic Initiatives and Significant DevelopmentsPaints Business (Birla Opus)

The Indian paints industry saw a disruptive year of FY 2025-26. The leading competitors launched a slew of measures to counter the rising competitive intensity. The industry also saw one large-scale acquisition by another recent entrant in a bid to improve their presence. The volatile geopolitical situation towards the end of

the year led to supply chain disruptions. The FY 2025-26, therefore can be termed as an inflexion year for the decorative paints business - permanently changing the contours & dynamics of the industry.

Birla Opus, the latest entrant to the decorative paints brand that launched in FY 2024-25, has made significant strides in FY 2025-26. Birla Opus revenues & volumes grew exponentially over 100% YoY in FY 2025-26 with more than 3% Revenue Market Share improvement.

Birla Opus commercialised its Kharagpur plant in October 2025 and now operates 6 plants with a total capacity of 1,332 Million Litres Per Annum (MLPA), commanding ~24% of organised decorative paints industry capacity in India. As Kharagpur plant commissioned, Birla Opus achieved its full scale first phase capacity completion. All the six plants are backward integrated with in-house emulsions and resin manufacturing capacity of 376.5 MLPA and 92.6 MLPA respectively capable of handling the entire paint capacity and more.

Birla Opus's commitment to manufacturing excellence hit another milestone with IMS certifications from M/S DNV. All six Birla Opus factories are ISO certified across three areas of Quality Management System (ISO 9001), Environment Management System (ISO 14001) and Safety Management System (ISO 45001).

Birla Opus manufacturing operations sustained its zero-fatality record with no lost time injuries recorded in FY 2025-26. In addition to the Zero Liquid Discharge (ZLD) operations, Birla Opus factories are now shifting to Green Energy (i.e. Solar Power) with completion at Ludhiana, Panipat plants and others in various stages of implementation The commissioning of the sixth factory also brought down the average logistics cost by over 30%, unlocking the efficiency of the supply chain network.

The Company spent capex of I 550 crore during FY 2025-26 and project spends of cumulatively I 9,902 crore until FY 2025-26 signifying the completion of ‘one of its kind’ greenfield project at global scale on time and without any cost overrun.

Birla Opus R&D with 14 dedicated labs at Taloja supported by a state-of-the-art pilot plant and a team of 100 experienced scientists continue to be a key driver of competitive differentiation, portfolio expansion, and cost leadership. Our Research & Development also received IMS certification of Quality Management System (ISO 9001) reflecting strong processes & systems.

During the year, Birla Opus added 40 new products reaching 218 product & 1,870 SKUs portfolio across Exterior and Interior Emulsions, Waterproofing, Textures & Designer Finishes, Enamels, Colorants, Wallpapers and Wood Finishes,

Stainers & Non-Mechanised Tools. The major category range addition took place in a) In-house wallpapers b) Launch of Painting Tools under sub-brand "Artist" c) Waterproofing products under sub-brand "AIIDry". The innovation and chemistry led formulation engineering continues at R&D infrastructure facility located at Aditya Birla Science and Technology Centre (ABSTC) in Taloja, Navi Mumbai. Birla Opus R&D operates a dedicated Product Life Cycle Management (PLCM) system integrated with SAP, marketing, and manufacturing systems, ensuring disciplined New Product Development (NPD) and Design Change Request (DCR) governance. All the products undergo internal and third-party validation, with NABL-accredited certifications. The team has filed four patent applications for critical differentiated technologies.

In a short period of less than 2 years, Birla Opus has set up pan India distribution network of 50,000 dealers and 146 depots servicing dealers in over 11,500 towns positioning Birla Opus' distribution as the 2^nd largest in the industry. The exciting 3-year dealer loyalty program known as "Signature Club" has garnered excellent response with top performing dealers in FY 2025-26 winning trips to New Zealand, South Korea, Vietnam and many more gifts.

'Birla Opus' unique tinting machine with smallest footprint integrated digitally to the central software system, delivering 2,320 colour shades including 216 iconic Indian shades, has been widely accepted by dealers. This innovative tinting solution is generating high quality colour data analytics, including diverse consumer preferences across various states of India, helping supply chain and marketing teams cater to changing aspirations consumer aesthetic needs.

The depot network, powered by Extended Warehouse Management System (EWMS) & Transport Management System (TMS), allows 4-hour delivery to dealers in depot town and next day delivery in upcountry towns & villages.

The separate institutional sales channel has created a robust pipeline of45,000 sites across segments of Builders, Cooperative Housing Societies (CHS), Government, Hospitals, Schools, Factories etc. and the list of specification approvals with key departments is increasing on a quarter-on-quarter basis.

Birla Opus Studio and Birla Opus Paint Gallery continues to delight the consumers and is transforming the decorative paints retailing industry across India. Birla Opus Paint Gallery enhanced the consumer paint experience with the largest organised retail footprint in the industry of 1,200 franchised stores across 700 towns. Birla Opus re-imagined the Branded Painting Services model under PaintCraft brand name to offer GST compliant services through its franchisee dealers & contractors ensuring highest quality of service. The PaintCraft painting service is now available in 6,000 pin codes.

Birla Opus redefined consumer painting experience offering superior product quality and warranty. This year, the business introduced industry-first service warranty through 'Opus Assurance’ campaign. The Company estimates that over 6 million households have applied and experienced Birla Opus products, with adoption of paint products continuing to accelerate exponentially.

Birla Opus has one of the largest active contractor base of over 4 lakh active contractors connected via a mobile opp "BIRLA OPUS ID" that allows accurate tracking of secondary sales. This coupled with our "Track & Trace" capability allows Birla Opus to monitor and react to changing market dynamics and take actions to help drive primary as well as secondary sales. Birla Opus operates learning centres across 10 major metro cities and focuses on upskilling lakhs of unorganised workforce of painters & contractors. The Architect & Interior Designer (AID) partner network has now crossed 3,000 active firms across 60 cities becoming the second largest AlD network in the industry.

The wide usage of Birla Opus products in millions of households demonstrates the trust of brand, deep penetration and level of product acceptance. Building on the successful brand awareness campaigns of "Duniya ko Rang Do" and "Naye Zamane ka Naya Paint", Birla Opus became the "Second Most 'Unaided Recall' and Top of Mind Brand" in Urban India basis Brand Track study by appointed agency in FY 2025-26. Birla Opus advertised extensively in country's most loved sport i.e., Cricket including T20 World cup & IPL 2026 season.

The new brand campaigns were promoted through multimedia including diverse multi language TV channels & popular digital media. These campaigns were supported with on-ground activations and Birla Opus became the most visible brand as per on-ground visibility measures basis internal assessment. Consumer & Influencer activation was promoted through 'Expo on Wheels, Van Activations, Amantran events and other activation programs that enabled direct connection with 1.3 lakh plus stakeholders in paints ecosystem.

The core pillar of strength of Birla Opus is the young & diverse team of over 5,500 on-roll employees. Birla Opus has inducted amongst the largest field team of sales and service in paints industry to support all its key stakeholders - dealers, contractors, painters, architects, and consumers. The entire Automated Manufacturing production is operated by trained engineers or diploma holders - a first in the industry. Birla Opus team remain committed to become #2 profitable decorative brand in every region across India as the brand drives towards its first vision of reaching I 10,000 annual crore revenue at the earliest.

B2B E-commerce (Birla Pivot)

India’s next phase of growth will come not from creating more marketplaces, but from transforming and streamlining B2B procurement. Birla Pivot aims to address this gap by simplifying and integrating how businesses purchase, finance, and receive raw materials, creating a more efficient and unified procurement experience across fragmented industries.

Birla Pivot has emerged as a comprehensive B2B e-commerce platform catering to building materials, metals, and industrial inputs. It serves as an integrated procurement solution that brings together sourcing, pricing, financing, and delivery on a single digital platform. Designed to address the complexities of B2B e-commerce, it enables businesses to access a wide range of products, benefits from transparent pricing, avail flexible credit, and track orders seamlessly, thereby making procurement more efficient, reliable, and streamlined.

Over the last 3 years, Birla Pivot has served businesses across the entire spectrum of India’s construction and industrial economy - EPC companies, civil and MEP contractors, real estate developers, manufacturing entities, OEMs, retailers - and delivered a B2C-like experience. We offer more than 50,000 SKUs from 1,000 brands, aggregated and price-optimised across geographies. Every consignment tracked in real time. Every seller, transporter, and delivery milestone connected on one platform.

Our core strength lies in our fully in-house technology platform, designed to support every stage of the B2B commerce lifecycle. It comprises four integrated modules: Pivot Edge for customer engagement, Pivot Grid for coordinated order execution, Pivot Vault for embedded financing solutions, and Pivot XP for end-to-end logistics management, enabling a seamless and efficient procurement experience.

Our diverse team combines deep industry expertise with cutting edge technology and operates with the agility of a startup and the long-term vision of a large conglomerate.

Birla Pivot is one of the fastest growing company in India’s B2B e-commerce landscape. Building Materials, Chemicals, and Metals all contributed meaningfully, and both Project and Retail customer segments scaled well.

In FY 2025-26, Birla Pivot saw a step-up in its technology capabilities, making the platform more data-driven and intelligent. Pivot Edge delivers buyer-level insights for better personalisation, while Pivot Vault’s Early Warning System enables proactive credit risk management. The business also achieved over 50% digitisation through WhatsApp and self-serve channels.

Even as volumes and complexity increased, execution strengthened, with improved OTIF and NPS across both project and retail segments.

Lyocell Project

The first phase (55 KTPA) of the Lyocell project at Harihar is progressing as per plan, with commissioning expected by mid-2027. Detailed Engineering activities have been substantially progressed and orders for major equipment have been placed. Technical evaluation and procurement of balance project packages is progressing well.

The Civil, mechanical, electrical & instrumentation contracts have been finalised and awarded. Civil work and foundation activities underway at site. The 220 KV substation order is placed, and project execution activities have commenced. The Company has initiated steps towards securing renewable power for the project. Overall, the project is progressing well.

Aditya Birla Renewables Limited (ABRen)a. Composite Scheme of Arrangement

During the year under review, the Board of Directors has approved a Composite Scheme of Arrangement amongst Essel Mining & Industries Limited (“EMIL”), an Aditya Birla Group Company, and Aditya Birla Renewables Limited (“ABRen or Transferee Company”), a wholly owned subsidiary of the Company, and the following subsidiaries of ABRen and EMIL, and their respective shareholders and creditors (“Scheme”), as follows:

i. transfer and vesting of the EMIL Renewable Energy Undertaking from EMIL to the Transferee Company, as a going concern, on a slump sale basis, without values being assigned to individual assets and liabilities, in accordance with Section 2(42C) and other applicable provisions of the Income Tax Act, 1961.

ii. amalgamation of Electrotherm Renewables Private Limited (“ERPL”), a wholly owned subsidiary of EMIL, with the Transferee Company; and

iii. amalgamation of ABREL EPCCO Services Limited, ABREL Renewables EPC Limited, ABREL EPC Limited, all wholly owned subsidiaries of the Transferee Company (collectively "the EPC Companies") with the Transferee Company.

The above Scheme would create a consolidated renewable energy platform along with ancillary services, under the Transferee Company to simplify

the management and operational structures of the Companies and would increase efficiency by reaping benefits of economies of scale and synergies.

ABRen has received the ‘No Objection Letter’ for the Scheme from BSE Limited on 9^th March 2026, and had filed application for approval of the Scheme with the Hon’ble National Company Law Tribunal, Mumbai and Kolkata Bench ('NCLTs') in March 2026. The Appointed Date of the Scheme is 1^st April 2025, and the Scheme will be effective post the approval of the Scheme by the NCLTs, and other regulatory and statutory approvals, as applicable.

b. Investment by EMIL on private placement basis in Aditya Birla Renewables Limited ("ABRen")

On 21^st January, 2026, the Board of Directors of ABRen has allotted ~ 49.26 crore fully paid-up equity shares through private placement on preferential basis to Essel Mining & Industries Limited, (“EMIL”) an Aditya Birla Group Company, aggregating to approx I 500 crore. Consequent to this transaction, ABRen had ceased to be wholly-owned subsidiary of the Company w.e.f. 21^st January, 2026, however, the Company continues to hold controlling stake in ABRen.

c. Investments/Acquisition of Stake in Aditya Birla Renewables Limited (“ABRen”), by GIP EM Star Pte Limited (“GIP EM”)

During the year under review, the Board has approved investment by GIP EM by way of one or more private placement on preferential basis, amounting to I 2,000 crore (Rupees Two Thousand crore) in various tranches into ABRen, vide a combination of Compulsory Convertible Preference Shares and Equity Shares, subject to the terms and conditions set out in the Securities Subscription Agreement and Shareholders' Agreement, executed amongst the Company, ABRen and GIP EM.

GIP EM also has an option to invest an additional amount up to I 1,000 crore (Rupees One Thousand crore) in the form of equity shares, pro-rata to its shareholding in ABRen, subject to the terms and conditions set out in the Shareholders' Agreement.

Further, on 15^th April 2026, the first tranche of I 1,000 crore (Equity of I 10 crore and Compulsorily Convertible Preference Shares of I 990 crore) was

Private Limited, incorporated on 24^th September 2025, in which the Company is holding 26% equity stake.

iii. For Ganjam Plant, Odisha: Investment in the SPV with GMR Energy Limited, namely GMR Kalinga Solar Power Limited, incorporated on 22^nd November 2025, in which the Company has agreed to acquire 29% equity stake.

During the year under review, 4 Limited Liability Partnerships (LLPs) i.e. Renukeshwar Estates LLP, Mangalyaan Estates LLP, Shambhavnath Estates LLP and Chandanprabhu Estates LLP were incorporated by the Company.

Except above, there were no other changes in the direct Subsidiaries, Associates and Joint Venture Companies of the Company during the year.

In accordance with the provisions of Section 129(3) of the Act, read with the Companies (Accounts) Rules, 2014, a report on the performance and financial position of each of the Subsidiaries, Associates and Joint Venture Companies is provided, in the prescribed Form AOC-1, in Annexure ‘A’ to this Report.

In accordance with the provisions of Section 136 of the Act, the Audited Standalone and Consolidated Financial Statements and related information of the Company and audited accounts of each of its subsidiaries are available on the website of the Company at https://www.grasim. com/investors/results-reports-and-presentations

UltraTech Cement Limited and Aditya Birla Capital Limited are the material listed Subsidiary Companies of the Company. Our Company does not have any material unlisted Subsidiary. The Audit Committee and the Board review the financial statements, significant transactions of all Subsidiary Companies, and the minutes of unlisted Subsidiary Companies are placed before the Board.

Our Company has adopted the Policy for determining material subsidiaries in accordance with the Listing Regulations. The said Policy is available on the Company’s website at https://www.arasim.com/upload/pdf/Grasim Policy Material Subsidiary Cos.pdf

UltraTech Cement Limited (‘UltraTech’)

UltraTech is the top-tier manufacturer of grey cement and ready-mix concrete (RMC), and one of the largest manufacturers of white cement in India. UltraTech operates 34 integrated manufacturing units, 34 grinding units, 1 clinkerisation unit and 10 bulk packaging terminals. It also has 465 RMC plants across 167 cities. UltraTech has two white cement units and four wall care putty units. As on 31^st March 2026, UltraTech’s grey cement capacity in India stood at 191.4 MTPA, reflecting an addition of 8.0 MTPA capacity. Its operations are backed by a robust logistics network that dispatches approximately 75% by road, 23% by rail and balance

by sea, servicing a wide distribution network of more than 1,50,000 channel partners across I ndia. In April 2026, UltraTech’s overall capacity (India Overseas) stood at 205.5 MTPA.

For FY 2025-26, consolidated sales volumes grew 8.6% YoY to 154.25 MMT, with capacity utilisation at 77%. RMC sales volumes grew 23% YoY to 16.44 million cubic meters. The share of green power (WHRS renewables) in total power consumption was 41.6%. Consolidated revenue grew 16.5% YoY to I 88,512 crore. EBITDA grew 32.3% YoY to I 17,598 crore, while PAT grew 35.6% YoY to I 8,188 crore. Operating cash flow stood at I 15,316 crore.

Aditya Birla Capital Limited (‘ABCL’)

Key Highlights of ABCL’s Consolidated Performance for the financial year ended 31^st March 2026 are as under:

Consolidated Revenue: I 45,427 crore (grew 12 % YoY)

Consolidated Net Profit: I 3,635 crore (grew 22 % YoY)

Overall, AUM across asset management, life insurance and health insurance at over I 5.91 lakh crore (grew 16 % YoY)

Overall lending book (NBFC and Housing Finance) at I 2.07 lakh crore (grew 32 % YoY)

Gross premium (across Life and Health Insurance) at I 31,634 crore (grew 24 % YoY)

Share Capital

The Authorised Share Capital of the Company stood at I 423.50 crore, comprising 2,06,25,00,000 Equity Shares of I 2/- each and 11,00,000 Redeemable Cumulative Preference Shares of I 100/- each as at 31^st March 2026.

Issued Share Capital of the Company stood at I 136.12 crore, comprising 68,05,83,601 Equity Shares of Face Value I 2/- each as at 31^st March 2026.

Subscribed and paid up capital of the Company stood at I 136.11 crore, comprising 68,05,80,576 Equity Shares as at 31^st March 2026.

Issue of Equity Shares on Rights Basis

In the FY 2024-25, the Board of Directors made two calls in respect of outstanding partly-paid up Equity Shares of the Company:

• First Call: I453/- per partly paid Equity Shares (comprising I 0.50 towards face value and I 452.50 towards securities premium), payable during the period from 4^th July 2024 to 18^th July 2024, both days inclusive; and

• Second and Final Call: I 906/- per partly paid Equity Share (comprising I 1/- towards face value and I 905/- towards securities premium), payable during the period from 6^th January 2025 to 20^th January 2025, both days inclusive.

In the FY 2025-26, the Company sent reminder letters to shareholders from whom the First Call and/or Second Call monies are pending and have issued shares based on the receipt of the call monies. The call monies received by the Company have been utilised for the objects stated in the Letter of Offer, towards repayment of certain borrowings of the Company and general corporate purposes.

Employee Stock Option Scheme and Purchase of Treasury Shares

During the year, Grasim Employees’ Welfare Trust (Trust) acquired 7,03,138 Equity Shares of the Company from the secondary market. As per Ind AS, purchase of own equity shares are treated as treasury shares. The Trust, constituted in terms of the Company’s Employee Stock Option Schemes ('ESOS'), holds 23,27,819 Equity Shares of the Company as on 31^st March 2026 for transfer to the eligible employees under ESOS-2018 and ESOS-2022. The ESOS-2018 and ESOS-2022 are being administered through the Trust.

ESOS-2018

During the year, 3,72,498 Equity Shares were transferred from the Trust's demat account to the employees account due to exercise of Stock Options and Restricted Stock Units ('RSUs') by the grantees under ESOS-2018.

ESOS-2022

During the year, the Nomination and Remuneration Committee (‘NRC’) of the Board approved grant of 5,81,072 Stock Options and 1,60,874 Performance Stock Units (‘PSUs’) to the eligible employees, including the Managing Director of the Company, under ESOS-2022.

During the year, 68,164 Equity Shares were transferred from the Trust's demat account to the employees account due to exercise of Stock Options and PSUs by the grantees under ESOS-2022.

The details of Stock Options and RSUs granted pursuant to ESOS-2018 and Stock Options and PSUs granted pursuant to ESOS-2022, and the other disclosures in compliance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, are available on your Company’s website at: https://www.grasim.com/Upload/PDF/esos-disclosures-2025-26.pdf

A certificate from the Secretarial Auditor with respect to implementation of your Company’s ESOS will be available at the ensuing AGM for inspection by the Members.

Deposits

During the year, our Company has not accepted or renewed any deposits within the meaning of Section 73 of the Act, read with the Companies (Acceptance of Deposits) Rules, 2014.

Issue of Non-Convertible Debentures (NCDs)

During the year, our Company has issued the following NCDs on private placement basis, which are listed on BSE Limited:

Directors and Key Managerial PersonnelAppointment/Re-appointment of Directors

In accordance with the provisions of the Act and the Articles of Association of the Company, Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal, Non-Executive, Non-independent Director of our Company, are liable to retire by rotation at the ensuing Annual General Meeting (‘AGM’).

Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal, being eligible, have offered themselves for re-appointment at the ensuing AGM.

Brief profiles of Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal are provided in the Report on Corporate Governance and Notice of AGM.

The Board of Directors at its meeting held on 10^th February 2025, based on recommendation of Nomination and Remuneration Committee ('NRC') and subject to the approval of Members of the Company, had approved the appointment of Mr. Himanshu Kapania (DIN: 03387441) as an Additional Director, Managing Director (‘MD’) and Key Managerial Personnel (‘KMP’) of the Company, not liable to retire by rotation, with effect from 1^st April 2025 up to 30^th April 2028.

Subsequently, the Members of the Company, by way of Postal Ballot held on 26^th June 2025 approved the above appointment of Mr. Himanshu Kapania as MD and KMP of the Company.

During the year, the Board of Directors at its meeting held on 10^th February 2026, based on the recommendation of NRC has re-appointed Mr. V. Chandrasekaran (DIN: 03126243) and Mr. Adesh Kumar Gupta (DIN: 00020403) as Independent Directors of the Company for a second term of 5 (five) consecutive years with effect from 24^th May 2026 up to 23^rd May 2031, in accordance with the provisions of the Act and SEBI Listing Regulations, subject to the approval of the Members of the Company.

Subsequently, the Members of the Company by way of Postal Ballot held on 27^th March 2026, approved the above re-appointments of Mr. V. Chandrasekaran and Mr. Adesh Kumar Gupta, as Independent Directors of the Company.

There is no pecuniary or business relationship between the Non-Executive Directors and the Company, except for the sitting fees and commission payable to the Non-Executive Directors, in accordance with the applicable laws and approval of the Members of the Company.

Key Managerial Personnel

Pursuant to the provisions of Sections 2(51) and 203 of the Act, Mr. Himanshu Kapania, Managing Director, Mr. Hemant Kumar Kadel, Chief Financial Officer (CFO) and Mr. Neelabja Chakrabarty, Company Secretary are the Key Managerial Personnel (‘KMP’) of the Company as on 31^st March 2026.

Consequent to the superannuation of Mr. Pavan Kumar Jain, CFO and KMP, with effect from 15^th August 2025, and based on the recommendations of the NRC and the Audit Committee, the Board of Directors, at its meeting held on 22^nd May 2025, approved the appointment of Mr. Hemant Kumar Kadel as CFO and KMP of the Company, with effect from 16^th August 2025.

Further, Mr. Sailesh Kumar Daga, Company Secretary and Compliance Officer of the Company, has tendered his resignation to pursue opportunities outside the Company with effect from the close of business hours of 15^th July 2025. Consequent to the same and based on the recommendation of the NRC, the Board of Directors, at its meeting held on 8^th August 2025, approved the appointment of Mr. Neelabja Chakrabarty as Company Secretary and Compliance Officer and KMP of the Company, with effect from 1^st October 2025.

The Board of Directors placed on record its deep appreciation for significant contribution made by Mr. Pavan Kumar Jain as CFO and Mr. Sailesh Kumar Daga as Company Secretary and Compliance Officer of the Company during their respective tenures.

Meetings of the Board

The Board of the Company met 7 (seven) times during the year to deliberate on various matters. The meetings were held on 22^nd May 2025, 8^th August 2025, 5^th November 2025, 9^th December 2025, 29^th December 2025, 16^th January 2026 and 10^th February 2026. Further details are provided in the Report on Corporate Governance, which forms an integral part of this Integrated Annual Report.

Statutory Committees of the Board Audit Committee

The Audit Committee comprises of Mr. N. Mohan Raj, Chairman, Mr. V. Chandrasekaran, Mr. Yazdi Piroj Dandiwala and Mr. Himanshu Kapania as its members. Three out of four members, including Chairman of Audit Committee are Independent Directors. The Chief Financial Officer of your Company is a permanent invitee at the Audit Committee Meetings.

Nomination and Remuneration Committee

The Nomination and Remuneration Committee (‘NRC’) comprises of Ms. Anita Ramachandran, Chairperson, Mr. Kumar Mangalam Birla, Mr. Haigreve Khaitan and Mr. Adesh Kumar Gupta as its members. Three out of four members, including Chairperson of NRC, are Independent Directors.

Corporate Social Responsibility Committee

The Corporate Social Responsibility (‘CSR’) Committee comprises of Smt. Rajashree Birla, Chairperson, Ms. Anita Ramachandran and Mr. Himanshu Kapania as its members.

Stakeholders’ Relationship Committee

The Stakeholders’ Relationship Committee (‘SRC’) comprises of Ms. Anita Ramachandran, Chairperson, Mr. Yazdi Piroj Dandiwala and Mr. Himanshu Kapania as its members. Majority of the members, including Chairperson of SRC, are Independent Directors.

Risk Management and Sustainability Committee

The Risk Management and Sustainability Committee (‘RMSC’) comprises of Mr. N. Mohan Raj, Chairman, Mr. Ashvin Parekh, Mr. V. Chandrasekaran, Mr. Himanshu Kapania, Mr. Jayant V. Dhobley, Business Head, CFI and Mr. Kapil Agrawal, Business Head, Textiles, as its members.

The Chief Financial Officer and Chief Sustainability Officer of our Company are permanent invitees at the RMSC Meetings.

All the recommendations made by the above Committees, during the year, were accepted by the Board of the Company.

Further details relating to the above Committees are provided in the Report on Corporate Governance, which forms an integral part of this Integrated Annual Report.

Independent Directors

Our Company has received declarations from all the Independent Directors of the Company, confirming that:

a) they meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1) (b) of the Listing Regulations;

b) they are not aware of any circumstance or situation which exists or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective of independent judgement and without any external influence; and

c) they have registered their names in the Independent Directors Databank.

Our Company’s Board is of the opinion that the Independent Directors possess requisite qualifications, experience and expertise in Corporate Governance, Legal and Compliance, Financial Literacy, General Management, Human Resource Development, Industry Knowledge, Technology, Digitisation and Innovation, Marketing, Risk Management, Strategic Expertise and Sustainability, and they hold highest standards of integrity.

Formal Annual Evaluation

Pursuant to the provisions of the Act and the Listing Regulations, the Board has carried out an annual evaluation of its own performance, its Committees, Independent Directors, Non-Executive Directors, Executive Director and the Chairman of the Board.

The NRC of the Board has laid down the manner in which annual evaluation of the performance of the Board, its Committees and Individual Directors have to be made. It includes circulation of evaluation forms separately for evaluation of the Board and its Committees, Independent Directors/Non-Executive Directors/Executive Director and the Chairman of the Company.

The performance of Non-Independent Directors, the Board, as a whole, and the Committees of the Board have been evaluated by Independent Directors in a separate meeting. At the same meeting, the Independent Directors also evaluated the performance of the Chairman of the Company, after taking into account the views of Executive Director and Non-Executive Directors. Evaluation as done by the Independent Directors was submitted to the NRC and subsequently to the Board.

Thereafter, the Board at its meeting discussed the performance of the Board, as a whole, its Committees and I ndividual Directors. The Board expressed satisfaction with the overall functioning of the Board and its Committees. The Board was also satisfied with the contribution of the Directors, in their respective capacities, which reflected the overall engagement of the Individual Directors.

The new Director inducted on the Company’s Board attends an orientation programme. The details of the programme for familiarisation of Independent Directors are provided in the Report on Corporate Governance, which forms an integral part of this Integrated Annual Report and is also available on the Company’s website at https://www.grasim.com/Upload/PDF/familiarisation-programme-independent-directors.pdf

Directors’ Responsibility Statement

The audited accounts for the year are in conformity with the requirements of the Act and the Accounting Standards. The financial statements reflect fairly the form and substance of transactions carried out during the year and reasonably present your Company’s financial condition and results of its operations.

Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their knowledge and ability, confirms that:

a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b) the accounting policies selected have been applied consistently, and judgements and estimates are made that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31^st March 2026, and of the profit of the Company for the year ended on that date;

c) proper and sufficient care have been taken for the maintenance of adequate accounting records, in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) annual accounts have been prepared on a ‘going concern’ basis;

e) the Directors have laid down proper internal financial controls, and that such internal financial controls are adequate and were operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The observations made by the Joint Statutory Auditors on the Financial Statements (Standalone and Consolidated) of the Company, in their Report for the financial year ended 31^st March 2026, read with the Notes therein, are self-explanatory and, therefore, do not call for any further explanation or comments from the Board of Directors under Section 134(3)(f) of the Act. The Auditors’ Report does not contain any qualification, reservation, disclaimer or adverse remark.

Cost Auditor

Our Company is required to prepare and maintain the cost accounts and cost records pursuant to Section 148(1) of the Act, read with rules made thereunder.

Based on the recommendation of the Audit Committee, the Board of Directors, at its meeting held on 20^th May 2026, approved the appointed of M/s. D. C. Dave & Co., Cost Accountants, Mumbai (Registration No. 000611), as the Cost Auditors to conduct the cost audit of the Company for the FY 2026-27 at a remuneration of I 28 lakh (Rupees Twenty Eight lakh only) plus applicable taxes and reimbursement of out-of-pocket expenses.

The Company has received the consent from M/s. D. C. Dave & Co., Cost Accountants, to act as the Cost Auditor of our Company for the FY 2026-27, along with the certificate confirming their eligibility.

In accordance with the provisions of Section 148(1) of the Act and Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor is required to be ratified by the Members of the Company. Accordingly, an Ordinary Resolution, for ratification of remuneration payable to the Cost Auditor for the FY 2026-27, forms part of the Notice of the ensuing AGM.

Secretarial Auditor

M/s. Makarand M. Joshi & Co., Company Secretaries (Firm Registration Number - P2009MH007000), Mumbai, was appointed as the Secretarial Auditor of the Company to hold office for a first term of five consecutive years from FY 2025-26 till FY 2029-30 of the Company. The said appointment was approved by the shareholders at the last AGM of the Company.

They have confirmed their eligibility and qualification required under the Act for holding the office, as Secretarial Auditor of the Company.

The Secretarial Audit Report, issued by M/s. Makarand M. Joshi & Co., Company Secretaries, for the FY 2025-26, is given in Annexure ‘D’ to this Report. The Secretarial Audit Report does not contain any qualification, reservation,

for an aggregate value of up to I 1,300 crore for the FY 2025-26. Subsequently, the members of the Company, by way of postal ballot on 26^th June 2025, approved both the material related party transactions.

Vigil Mechanism/Whistle-Blower Policy

Our Company has established a mechanism for directors and employees to report instances and concerns about unethical behaviour, actual or suspected fraud, or violation of the Company’s Code of Conduct. It also provides adequate safeguards against the victimisation of employees, who avail the mechanism and allows direct access to the Chairman of the Audit Committee in exceptional cases. During the year, no person was denied access to the Audit Committee.

The details of the Vigil Mechanism are also provided in the Report on Corporate Governance, which forms an integral part of this Integrated Annual Report and the Vigil Mechanism/Whistle-Blower Policy is available on the website of the Company at https://www.grasim.com/ Upload/PDF/whistle-blower-policy.pdf

Corporate Social Responsibility

In terms of the provisions of Section 135 of the Act and Rules made thereunder, the Board has a Corporate Social Responsibility ('CSR') Committee, which is chaired by Smt. Rajashree Birla. The other Members of the Committee are Ms. Anita Ramachandran, Independent Director and Mr. Himanshu Kapania, Managing Director. Dr. Pragnya Ram, Group Executive President - CSR is a permanent invitee to the Committee. The Corporate Social Responsibility Policy (‘CSR Policy’), indicating the activities undertaken by the Company, is available on your Company’s website https://www.qrasim.com/Upload/ PDF/grasim-csr-policy.pdf

Our Company is a caring corporate citizen, and lays significant emphasis on development of the host communities around which it operates. Our Company, with this intent, has identified several projects relating to Social Empowerment and Welfare, Rural Development, Sustainable Livelihood, Health Care and Education, during the year, and initiated various activities in neighbouring villages around its plant locations.

During the year, the Company has spent I 73.35 crore, of which I 53.89 crore was spent towards Committed CSR Projects of the Company, and an amount of I 19.46 crore was voluntarily spent for CSR activities.

The initiatives undertaken by the Company on CSR activities, during the year, are given in Annexure ‘E’ to this Report, in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.

Risk Management and Sustainability

Our Company remains firmly committed to a comprehensive and forward looking approach to risk management and sustainability, recognising them as essential enablers for long-term value creation and achievement of organisational objectives. In an increasingly dynamic business environment, our robust risk management framework facilitates the identification, assessment, mitigation, and continuous monitoring of diverse risks across the organisation. This approach not only safeguards our interests, but also allows us to proactively seize emerging opportunities.

The Board level Risk Management and Sustainability Committee (RMSC) plays a pivotal role in embedding risk management into the core of strategic and operational decision making. The Committee is entrusted with framing relevant policies, monitoring their implementation, and reviewing the Company’s risk and sustainability performance to ensure alignment with our long-term vision. Our Risk Management Policy is available on the Company’s website at https://www.grasim.com/ Upload/PDF/risk-management-policy.pdf serves as the cornerstone for guiding these efforts.

We have systematically identified and assessed a wide range of risk areas including external, strategic, financial, operational, sustainability, cyber security, compliance, and knowledge based risks. Our risk informed decision making culture empowers us to take timely and well considered actions, enabling the Company to adapt quickly to change while ensuring business continuity and stakeholder confidence. Tailored mitigation strategies have been implemented for each risk category to strengthen our operational resilience.

The Management Discussion and Analysis section of this Report outlines the key risks identified and the corresponding mitigation plans. During the financial year, the RMSC met three times to review the effectiveness of our risk management and sustainability practices. The Board remains confident in the Company’s ability to navigate uncertainties, achieve strategic objectives, and generate sustainable value. Importantly, there are no risks currently identified that, in the opinion of the Board, pose a threat to the Company’s continued existence.

Sustainability

We continue to place sustainability at the core of our strategy, recognising it as a key driver of long-term value, resilience and responsible growth. In the FY 2025-26, ESG considerations were further accelerated into business planning, capital allocation and operations, aligned with the Aditya Birla Group’s Net Zero roadmap and robust governance, transparent disclosures and alignment with leading global and national frameworks. The RMSC reviewed enterprise risks and sustainability priorities, covering areas such as decarbonisation, renewable energy, resource efficiency, water stewardship, circularity and cyber security, while also tracking emerging opportunities from evolving regulations, technology and customer expectations, enabling risk-informed and resilient decision-making.

The Company advanced its climate agenda through targeted investments in cleaner technologies, process optimisation and energy efficiency improvements, leading to a substantial increase in renewable power share to 24% (up from 11% in FY 2024-25). Water stewardship efforts were further strengthened, with up to 53% of total water consumption met through recycled water, reflecting a strong push towards conservation, reuse and reduced dependence on freshwater resources. These initiatives were complemented by continued focus on waste minimisation, circular economy practices and responsible sourcing. At the same time, sustained emphasis on employee safety, ethical conduct, responsible supply chains and community development reinforced the social and governance pillars of sustainability. Overall, the Company's sustainability framework remains robust and confident in navigating uncertainties while delivering sustainable long-term value to all stakeholders.

Business Responsibility and Sustainability Report

As per Regulation 34(2)(f) of the Listing Regulations, a separate section on Business Responsibility and Sustainability Report, describing the initiatives taken by the Company from environmental, social and governance perspective, forms an integral part of this Integrated Annual Report.

Annual Return

Pursuant to Sections 92 and 134 of the Act, and the Rules made thereunder, the Annual Return of your Company as on 31^st March 2026 is available on the Company’s website at https://www.qrasim.com/Upload/PDF/form-mqt-7-annual-return-fy-2025-2026.pdf.

Internal Controls

Our Company has in place adequate internal control systems (including internal financial control system) commensurate with the size and complexity of its operations. Internal control systems comprising of policies and procedures are designed to ensure sound management of the Company’s operations, safe keeping of its assets, optimal utilisation of resources, reliability of its financial information and compliance. Systems and procedures are periodically reviewed to keep pace with the growing size and complexity of the Company’s operations. During the year, no material or serious observation has been received from the Joint Statutory Auditors of your Company, citing inefficiency or inadequacy of such controls.

Remuneration Policy

The Company’s remuneration policy is directed towards rewarding the performance based on review of achievements. The remuneration policy is in consonance with the existing industry practice. There has been no change in the policy during the year.

The Remuneration Policy of the Company, as formulated by the NRC of the Board is given in Annexure ‘F’ to this Report and is also available on the Company’s website at https://www.grasim.com/upload/pdf/ABG-executive-remuneration-philosophv-policy.pdf

Research and Development (R&D)

The R&D projects undertaken by the Company focus on developing and commercialising differentiated premium/ new products, improving our competitive cost position, product quality and environmental sustainability. To support these goals, the Company develops a pipeline of projects to address near and mid-term needs, as well as the exploration of future opportunities.

Business-wise details are described hereunder:Cellulosic Staple Fibre (CSF)

The CSF business continued to execute with clarity and conviction, anchored in its long-term vision of global leadership in sustainable man-made cellulosic fibres.

Sustainability, circularity and traceability have become defining requirements, shaped by evolving regulations, brand commitments and increasingly conscious consumer preferences. At the same time, trade patterns are shifting due to localisation, new trade blocs and geopolitical

realignments-creating both complexity and opportunity for fibre producers with scale, resilience and clarity.

Sustainability has evolved from a licence to operate into a core driver of growth and differentiation. Our Cellulosic Fibre business, Birla Cellulose retained the highest global sustainability rating from Canopy for the sixth consecutive year, reflecting consistent performance in responsible sourcing, traceability and environmental stewardship. Beyond recognition, sustainability is translating into tangible commercial advantage - strengthening customer trust, deepening brand partnerships and improving access to global markets as ESG-aligned sourcing becomes central to brand strategies.

Our CSF business continues to provide a strong and resilient foundation through scale, cash generation, cost discipline and quality leadership. This robustness enables investment opportunities in future-ready fibre platforms.

Against the backdrop of stagnating cotton availability due to land, water and climate constraints, Lyocell is emerging as the most credible and scalable solution to bridge the widening cellulosic gap. Its closed-loop process and strong alignment with sustainability, position it as a fibre of the future. The leading European and global brands increasingly view Lyocell as integral to long-term sourcing strategies.

In line with this conviction, we continue to invest in Lyocell capacity, technology and R&D. The first phase of the Lyocell project at Harihar is progressing in line with plan, with engineering, procurement and site execution advancing steadily reinforcing confidence in disciplined project execution and timely ramp-up.

The operating environment remained challenging through the year, with intensified competition and external volatility. In response, the CSF business remained sharply focused on controllable levers-tightening consumption norms, improving asset reliability, strengthening power-plant reliability and enhancing process discipline.

At the same time, the Company continues to engage constructively with policymakers and industry stakeholders for creating level playing field for Domestic Industry vs. imports by supporting frameworks that recognise sustainability, compliance and long-term value creation, while competing primarily through internal strengths.

Sustained investment in R&D - across both operating and capital expenditure-remains a defining strength. R&D efforts span new fibre solutions, premium and specialty offerings, process innovation, digital manufacturing and sustainability-led differentiation. Investments in pilot facilities, advanced modelling, specialised equipment and in-house engineering

capabilities are accelerating scale-up and improving reliability. Partnerships with global technology providers, brands and downstream players ensure innovation remains closely aligned with customer needs and regulatory trends.

As global textiles move decisively toward sustainability, circularity and traceability, the CSF business is well positioned to lead. With expansion in Lyocell, sustained focus on operating efficiencies and R&D-led differentiation, Cellulosic Fibres remains a key pillar of growth.

CeNulosic Fashion Yarn (CFY)

The Cellulosic Fashion Yarn (CFY) business continues its purposeful journey toward excellence by integrating innovation, sustainability, and operational resilience at every stage of its value chain. With a strong foundation in responsible manufacturing and an unwavering focus on customer expectations, CFY is shaping the future of fashion yarn through advanced materials, transparent value chains, and world class safety and environmental practices.

At the heart of CFY’s innovation agenda is the development of closed-loop Lyocell Filament Yarn (LFY) technology, undertaken in partnership with a leading European technology provider. Following a successful lab scale proof of concept, the pilot phase is now focused on scale up, performance optimisation, and yarn sample development for customer validation-laying the foundation for future commercialisation. Alongside this, CFY has introduced cutting edge yarn solutions such as high DPF, low DPF microfilaments, and dull-with-tracer yarns that enhance fabric aesthetics, performance, and supply chain traceability.

A breakthrough in product responsibility, the Raysileco brand integrates both molecular and digital traceability directly within the yarn, enabling end-to-end tracking across the textile value chain. This empowers brands and consumers with unprecedented visibility, transparency, and trust in the origins and journey of the product they use.

Sustainability remains a core differentiator for CFY. The Raysil® portfolio is backed by globally recognised certifications including FSC-COC, Canopy “Green Shirt,” Higg Index, LCA, ZDHC MMCF 3.0, RCS, STeP, and OEKO TEX® Standard 100 Class 1, ensuring responsible sourcing, chemical stewardship, and the highest product safety standards. CFY also advanced its environmental performance through CEMS migration to the CPCB’s ODAMS portal, securing SO₂-limit exemption for the TPP in line with national regulations, and progressing biodiversity assessment under a No Net Loss (NNL) framework.

The shift from paper-based permits to a digital E Permit system has transformed visibility and governance, enabling analysis of 12,000 permits to identify work patterns, high-risk zones, and opportunities for engineering interventions.

Similarly, the structured Process Safety Event (PSE) reporting framework, aligned to API RP 754 and CCPS, has deepened risk visibility with 717 events captured across tiers, strengthening barrier management and early warning capability.

Through its integrated focus on product innovation, value chain transparency, safety leadership, and responsible operations, the CFY business continues to demonstrate resilience and steady, sustainable progress.

Chemicals

The R&D efforts are focusing on further enhancing our chlorine derivative portfolio, developing new products improving the chlorine utilisation, and cost optimisation of current product portfolio.

Through our R&D Centre, we continue to advance water treatment technologies with a strong focus on safety, sustainability, and regulatory compliance. During the year, we progressed the development of sustainable potable water solutions, including the demonstration of HSBP technology for both swimming pool and drinking water sanitation. For the textile sector, we introduced new Vytal formulations to address the treatment of coloured effluents effectively. We also developed cost effective solutions for COD reduction and fluoride removal, along with specialised products for Zero Liquid Discharge (ZLD) applications involving RO membrane systems used in Effluent Treatment Plants (ETPs) and Common Effluent Treatment Plants (CETPs). Additionally, we strengthened our Vytal portfolio to offer a comprehensive range of coagulants catering to diverse applications across textile, metallurgy, ceramics, and refinery industries. During the year, we developed sustainable manufacturing technology for the Vytalfix product range and have filed a patent for this innovation.

Business development and R&D team worked closely with customers across paver blocks, clear film liquids, and artificial leather segments during the year. As a result of these collaborations, sustainable formulations have been successfully developed and commercialised under the Twist brand. In addition, product ranges are being developed to enhance compatibility between PVC and phthalate free plasticisers, supporting both business growth and customer adoption of more human friendly formulations. Further, a compatibilizer product portfolio for coatings and adhesives applications is under development and is planned for commercialisation in the next financial year.

We are also extending our technology platforms into adjacent markets, such as composites, electrical, coatings, and construction, while driving deeper penetration into polyester applications. Active collaboration with OEMs and Tier partners is enabling the introduction of recyclable epoxy systems into E&E applications, aligned with the sector’s growing requirements for circularity and responsible end of life solutions. Our epoxy systems have advanced to deliver enhanced fire resistance for electronics applications, and we continue working closely with customers to further improve these offerings. A key focus area remains the development of Bisphenol A (BPA) free can coatings for the food industry, delivering sustainable and safe performance with excellent corrosion resistance, adhesion, and processability. This programme includes customer qualification testing and alignment with global regulatory and safety standards. In parallel, we are expanding the portfolio toward waterborne epoxies to reduce Volatile Organic Compounds (VOCs) and enhance worker and environmental safety, with targeted performance across industrial metal, flooring, and protective coatings. As we continue to develop new solutions, we remain committed to the constant improvement of the efficiency and sustainability of our existing liquid epoxy resin processes through focused process optimisation and continuous improvement initiatives.

Textiles

The Textiles business continues to drive innovation by serving emerging customer needs with a strong focus on sustainability, performance, and continuous process improvement. Our efforts are centred on developing future-ready textile solutions that balance comfort, aesthetics, and environmental responsibility. The key innovations launched this year are as follows:

Key Innovations Launched this Year

All-Season Fabric: Our All-Season Fabric is a premium blend of Linen and Wool, engineered to deliver comfort across varied climatic conditions. Linen provides a cooling effect, while wool naturally regulates body temperature, ensuring all-day comfort with superior moisture management. The fabric features a subtle linen slub combined with the softness of wool, creating a refined and luxurious appearance with a soft hand feel and structured drape. Its ability to rapidly absorb and release moisture helps keep the wearer dry and fresh throughout the day. Crafted entirely from natural, bio-degradable fibres, this breathable yet temperature-balancing fabric reflects our commitment to eco-conscious innovations while meeting premium performance expectations.

Policy on Prevention of Sexual Harassment of Women at Workplace

Our Company has zero tolerance for sexual harassment at workplace. Our Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (‘POSH Act’), and the Rules framed thereunder. All employees (permanent, contractual, temporary and trainees) are covered under this policy.

Our Company has constituted Internal Complaints Committee to redress and resolve any complaints arising under the POSH Act. There were 2 (two) complaints pending at the beginning of the year. During the year, 8 (eight) complaints were received, out of which 8 (eight) complaints were resolved, and 2 (two) complaints were unresolved at the end of the year. The Company is committed to providing a safe and conducive work environment to all its employees and associates.

Compliance of the Provisions Relating to the Maternity Benefit Act, 1961

The Board affirms that the Company remains fully committed to upholding its Maternity Policy in strict compliance with applicable laws, including the Maternity Benefit Act, 1961, and in alignment with internal human resource protocols.

The policy is designed to support the health, well-being, and work-life balance of women employees during and after pregnancy.

Human Resources

Our Company’s human resource is the strong foundation for creating many possibilities for its business. The efficient operations of manufacturing units, market development and expansion for various products were the highlight of our people’s effort.

Continuous people’s development for developing knowledge and skills coupled with the Talent Management practices will deliver the talent needs of the Organisation. Our Company’s employee engagement score reflects high engagement and pride in being part of the Organisation.

The Group’s Corporate Human Resources plays a critical role in the Company’s talent management process.

Awards and Accolades

• BW Businessworld Top 3 Conglomerates - Sustainable Organization 2025

• Times Group, Global Sustainability Alliance Sustainable Organization 2025

• CNBC-TV18 India Risk Management Awards 2025 -“Masters of Risk, Conglomerate” Large Cap category.

• Grasim Ranks 3^rd in Hurun Perpetual 2026

• Grasim Treasury won Adam Smith Award 2025

• Grasim won ICC Social Impact Awards - 2026 in education and animal care

• Grasim won the CSR Times Award - 2025

• Grasim CSR won Large Corporate Health Program and Most Innovative education project from IHW, Integrated Health & Wellbeing Council, Delhi

• Grasim recognised for contribution to NSE Nifty 50 - 3 decades event

• Birla Cellulose No 1 ranking in Canopy’s Hot Button Report 2025

• SFD, Nagda awarded “12^th CSR Times Awards 2025 -Gold -" Livelihood category"

• CFY, Veraval Unit awarded Golden Peacock National Energy Award 2025

• CFY, Veraval Unit awarded CII Energy Efficient Unit Award at 26^th National Award for Excellence in Energy Management 2025

• CFY, Kalyan Unit awarded Golden Peacock HR Excellence Award 2025

• CFY, Kalyan Unit awarded CII National Manufacturing Excellence Award and Energy Efficient Unit Award 2025

• CFY, Kalyan Unit awarded National Award for Manufacturing Competitiveness by IRIM Mumbai

• Chemical Division awarded with Responsible Care Logo, a global voluntary initiative by the Chemical Industry aimed at continuously improving Environment, Health and Safety performance

• Chemical Division, Vilayat Unit won the ICC EVONIK Award of Excellence in Management of Environment

• Insulator Business, Rishra Unit won the Quality Award in the Gold Category at ICC Quality Management Systems Conference 2025

• Birla Opus Paints awarded Gold at PRCA Awards 2025 in Best New Product Launch (for ‘Make Life Beautiful’)

• Birla Opus Paints won SABRE APAC 2025 in Home/Furniture Industry Category.

Update on Material Orders passed by the Regulators

• The Competition Commission of India (‘CCI’) had passed an order under Section 4 of the Competition Act, 2002, dated 16^th March 2020, imposing a penalty of I 301.61 crore in respect of the investigation period 2012-17. The Company had filed an appeal against the order before the Hon’ble National Company Law Appellate Tribunal ('NCLAT'), and had obtained a stay by depositing I 30.16 crore with NCLAT by way of fixed deposit. On 5^th May 2026, the NCLAT set aside the Order dated 16^th March 2020, and remanded the matter back to the CCI for fresh hearing and consideration. Consequently, the penalty of I 301.61 crore and certain behavioural directions imposed earlier on the Company have been set aside.

• The CCI had passed another order dated 6^th August 2021, under Section 4 of the Competition Act, 2002, in respect of the investigation period 2017-18. The Company filed an appeal before the Hon’ble NCLAT. Pursuant to the NCLAT order dated 5^th May 2026 setting aside and remanding the CCI’s order dated 16^th March 2020, the Company shall take appropriate steps in the pending appeal.

General

Your Directors state that no disclosure or reporting is

required in respect of the following items as there were no

transactions on these matters during the year:

1. No material changes and commitments affected the financial position of the Company between the end of the financial year and the date of this Report;

2. No Issue of equity shares with differential rights as to dividend, voting or otherwise;

3. No Issue of sweat equity shares to the employees or directors of the Company;

4. The Managing Director of the Company does not receive any remuneration or commission from any of its Subsidiaries;

5. There were no revisions in the financial statement(s);

6. There has been no change in the nature of business of the Company;

7. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Company’s operations in the future. The update on the status of material orders passed by the Regulators or Hon’ble Court or Hon’ble Tribunals is provided in this Report;

8. There were no proceedings initiated under the Insolvency and Bankruptcy Code, 2016;

9. There was no instance of one-time settlement with any Bank or Financial Institution; and

10. There was no failure to implement any Corporate Action.

Acknowledgement

Your Directors express their deep sense of gratitude to the shareholders, banks, financial institutions, stakeholders, business associates, Central and State Governments for their cooperation and support and look forward to their continued support in future.

Your Directors very warmly thank all our employees for their contribution to the Company’s performance. We applaud them for their superior levels of competence, dedication and commitment to our Company.