Electrosteel Castings submitted its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026, to the Bombay Stock Exchange and National Stock Exchange of India Limited on August 5, 2026. The filing, executed by Company Secretary Indranil Mitra, outlines the company’s performance against environmental, social, and governance (ESG) criteria as mandated by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure provides investors with transparency regarding the company’s operational footprint, workforce demographics, and sustainability initiatives during FY26.

The report highlights that Electrosteel Castings operates across 18 locations in India and 31 international locations through its subsidiaries. Exports contributed 22% to the company’s total turnover, with products reaching customers in 130 countries. The company serves a diverse clientele including major turnkey contractors like L&T, Megha Engineering, and NCC, as well as state government departments such as PHED/Water supply.

Workforce and Social Metrics

Electrosteel Castings reported a total workforce of 12,860 individuals at the end of FY26, comprising 1,642 employees and 11,218 workers. Women constituted 3% of the employee base and 1% of the worker base. The turnover rate for permanent employees was 9%, while permanent workers saw a 5% turnover rate.

The company maintains a grievance redressal mechanism for all stakeholder groups, including communities, investors, shareholders, employees, customers, and value chain partners. During FY26, no complaints were received from communities, investors, shareholders, customers, or value chain partners. Employees and workers filed 199 and 7 complaints respectively, with none pending resolution at year-end.

Environmental Performance and Compliance

The company identified greenhouse gas (GHG) emissions, energy management, water management, waste management, and health and safety as material issues. Electrosteel Castings holds ISO 14001:2018 certification for Environmental Management Systems and ISO 50001:2018 for Energy Management Systems at its Khardah and Haldia units.

Total energy consumption from non-renewable sources stood at 1,85,06,347 Giga Joules (GJ), while renewable source consumption was 1,274 GJ. Water withdrawal totaled 33,02,063 kilolitres, primarily from groundwater and third-party sources. The company implemented Zero Liquid Discharge (ZLD) systems at its Srikalahasthi Works.

Governance and Safety

The company’s Board includes 27.78% female representation, with five women directors out of 18. The CSR & Sustainability Committee, comprising two Independent Directors and the Managing Director, oversees sustainability-related decisions. Additionally, an ESG Steering Committee drives integration of ESG initiatives across operations.

Safety metrics showed a Lost Time Injury Frequency Rate (LTIFR) of 0.34 per million person-hours for employees and 0.46 for workers in FY26. There were no fatalities or high-consequence work-related injuries reported. The company conducts regular health and safety assessments, with 100% of plants and offices assessed for both health and safety practices and working conditions.

Electrosteel Castings Limited has filed its Annual Report for the Financial Year 2025-26 and issued a notice convening its 71st Annual General Meeting (AGM), scheduled for Monday, August 31, 2026, at 11:30 a.m. via Video Conferencing (VC) / Other Audio Visual Means (OAVM). The deemed venue for the meeting is the company's Registered Office at Rathod Colony, Rajgangpur, Sundergarh, Odisha 770 017.

Financial Performance: Standalone and Consolidated

The financial year 2025-26 was marked by a significant contraction in both revenues and profitability. On a standalone basis, Revenue from Operations declined to Rs. 5032.54 Crore from Rs. 6745.88 Crore in FY 2024-25. Profit After Tax fell to Rs. 131.34 Crore from Rs. 712.12 Crore in the previous year. The operating environment was characterised by a temporary lull in government expenditure on water-related infrastructure projects, which depressed domestic volume off-take and sales prices, while geopolitical conflicts and ongoing war conditions impacted export demand.

The following table summarises the key financial results:

Dividend and AGM Details

The Board of Directors has recommended a final dividend of Re. 0.90 per Equity Share of face value Re. 1 each (@ 90%) for the Financial Year ended March 31, 2026. If approved by shareholders at the 71st AGM, the total outlay on account of the final dividend for FY 2025-26 would amount to Rs. 55.64 crores. The dividend will be paid subject to deduction of income tax at source (TDS).

Key AGM and dividend-related dates are as follows:

Operations and Production

During FY 2025-26, production of Ductile Iron (DI) Pipes was 5,36,336 MT, compared to 732,004 MT in the previous year. The decline was attributed to stabilisation issues in pipe plants and reduced demand in Q3 and Q4. Cast Iron (CI) Pipe production was 42,795 MT versus 41,431 MT in the prior year, reflecting improved capacity utilisation. DI Fittings & Accessories production stood at 18,090 MT compared to 22,568 MT in FY 2024-25. The Blast Furnace produced liquid metal of 6,40,678 MT in FY 2025-26 versus 752,500 MT in FY 2024-25.

The company's standalone sales mix for FY 2025-26 is presented below:

Key Financial Ratios

Significant changes in key financial ratios were observed during the year, primarily due to a decrease in volume of sales and lower realisations:

Strategic Developments

During the year, the company acquired T.I.S. Service S.p.A. (TIS), an Italian valve manufacturer, pursuant to a Share Purchase Agreement with T.I.S. Group S.P.A. The company acquired 30,00,000 equity shares of EURO 1 each of TIS, representing 100% shareholding, at an aggregate consideration of EURO 1,15,00,000 equivalent to Rs. 11470.16 lakhs. The entire consideration was remitted on July 29, 2025, and TIS became a wholly owned subsidiary of the company. This acquisition is intended to expand the Group's water infrastructure solutions portfolio by adding a valve product range.

On the credit rating front, India Ratings and Research (Ind-Ra) maintained the company's Long-Term Issuer Rating at 'IND AA' with a Stable Outlook and reaffirmed short-term bank facilities at 'IND A1+'. CRISIL Ratings revised the outlook on the Long-Term Issuer Rating to 'CRISIL AA/Negative' from 'CRISIL AA/Stable', while reaffirming short-term bank facilities at 'CRISIL A1+' with a Stable Outlook.

Corporate Governance and Board Changes

During FY 2025-26, the Board held 5 meetings. Mr. Bikramjit Ghosh (DIN: 00164178) was appointed as an Additional Director (Non-Executive and Independent) with effect from August 30, 2025, subsequently regularised by shareholders via Postal Ballot on November 16, 2025. Dr. Ajay Kumar (DIN: 01975789) ceased to be an Independent Director and Chairman with effect from May 15, 2025, following his appointment as Chairman of the Union Public Service Commission. Mr. Rajkumar Khanna (DIN: 05180042) was re-appointed as an Independent Director for a second term of 5 consecutive years with effect from June 15, 2025. Mrs. Priya Manjari Todi (DIN: 01863690) and Mrs. Radha Kejriwal Agarwal (DIN: 02758092) retire by rotation at the forthcoming AGM and have offered themselves for re-appointment.

The CSR obligation for FY 2025-26 was Rs. 1504.36 lakhs, against which the company spent Rs. 1528.00 lakhs, resulting in an excess spend of Rs. 23.64 lakhs available for set-off in succeeding financial years.