Kalpataru Projects International Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, detailing its environmental, social, and governance performance. The report, submitted to the exchanges on June 22, 2026, highlights the company's progress toward long-term sustainability goals, including carbon neutrality by 2040, water neutrality by 2032, and a circular economy for construction and demolition waste by 2035. The Transmission Line International (TLI) division achieved carbon neutrality for the third consecutive year, offsetting 10,971.09 tCO2e through the retirement of 11,600 tCO2e carbon credits.

The company reported that 26% of its electricity consumption came from renewable sources, with total owned solar capacity exceeding 6.18 MWp. A 3 MWp solar plant at Uniara exported approximately 5,049 MWh of renewable electricity to the grid during the year. Kalpataru Projects International also achieved aggregate energy savings of 1,201 MWh across manufacturing units and project sites. The company obtained reasonable assurance for its BRSR Core disclosures from TÜV SÜD South Asia Pvt. Ltd., enhancing the credibility of its sustainability reporting.

Sustainability Performance

Kalpataru Projects International reported significant advancements in its environmental stewardship. The company segregated and reused 32,168 MT of construction and demolition waste, reducing landfill impact. Water conservation efforts included the construction of two rainwater harvesting ponds with a total capacity of 20,275 KL and the collection of 24,462 KL of rainwater. All four of the company's facilities operated with Zero Liquid Discharge (ZLD) systems, ensuring no liquid effluents were released outside the premises.

The company's biodiversity protection initiatives included afforestation drives, with over 2.16 lakh trees planted to date and more than 50,000 saplings planted during FY 2025-26 through CSR initiatives. The company also initiated a Life Cycle Assessment (LCA) for 400 kV Galvanised Steel Lattice Transmission Towers to evaluate environmental impacts across the product life cycle.

Social and Governance Metrics

The company reported a workforce of 14,146 employees, comprising 11,182 permanent and 2,964 other than permanent workers. Women accounted for 3.90% of the permanent workforce and 1.51% of other than permanent workers. The Board of Directors included one female member out of eight, representing 12.5% diversity. Key Management Personnel had 25% female representation.

Kalpataru Projects International's CSR initiatives reached over 99,000 beneficiaries and extended care to more than 7,400 animals. The company spent ₹39.29 lakh on CSR projects in designated aspirational districts, including Aurangabad, Dumka, Godda, and Dantewada. The company maintained a zero-tolerance approach towards bribery and corruption, with an Anti-Bribery and Anti-Corruption Policy aligned with ISO 37001 standards.

Supply Chain and Assurance

The company launched the KalpaSetu ESG supplier assessment framework, transitioning to a fully digital platform-based model. It identified 111+ significant suppliers and assessed 28 during the year. The company also deployed 10 structured e-learning modules on sustainability for 50 MSME suppliers. TÜV SÜD South Asia Pvt. Ltd. provided reasonable assurance for the 9 Core Attributes of the BRSR, confirming that the sustainability indicators were prepared in all material respects in accordance with reporting requirements.

Kalpataru Projects International Limited disclosed that its Kenya branch office received an assessment notice from the Kenya Revenue Authority demanding a penalty of KES 11,070,578 (~ INR 80.95 lakhs) for the financial year 2024. The demand arises from alleged non-payment of Profit Repatriation Tax (PRT), interest, and penalty. The company stated that the penalty does not have a significant impact on its financial or operational activities.

The notice, received on June 15, 2026, pertains to the branch office's operations in Kenya. According to the filing, the authority has levied the demand on account of the alleged non-payment of PRT. The company intends to exercise its right to file objections against the assessment notice within the prescribed timelines.

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the specific penalty amount is detailed in the notice, while the overall financial impact remains insignificant.