Kirloskar Industries Limited (KIL) has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and the National Stock Exchange of India Limited, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report forms an integral part of the Annual Report for FY 2025-26 and was submitted to the exchanges on 23 July 2026. The disclosures are made on a standalone basis and cover KIL's performance across all nine NGRBC principles. The BRSR Core indicators have been independently assured by BDO India Services Private Limited under the Reasonable Assurance standard for the period 1st April 2025 through 31st March 2026.

Company Overview and Key Financial Parameters

Kirloskar Industries Limited, incorporated in 1978 and registered under CIN L70100PN1978PLC088972, operates primarily as an unregistered Core Investment Company (CIC). Its principal business activities include investing in group companies, securities, and leasing of properties (97% of turnover), along with wind power generation (3% of turnover). The company is listed on both BSE Limited and the National Stock Exchange of India Limited. The following table summarises key financial and corporate parameters as disclosed in the BRSR:

The company holds stakes in two subsidiaries — Avante Spaces Limited (100.00% ownership), a wholly-owned subsidiary focused on real estate, and Kirloskar Ferrous Industries Limited (45.93% ownership), a material subsidiary engaged in the manufacturing of pig iron, castings, steel, and seamless tubes. Kirloskar Brothers Limited is an associate company with a 23.91% stake held by KIL.

Governance, Ethics, and Policy Framework

KIL's governance framework is anchored in a comprehensive suite of Board-approved policies covering all nine NGRBC principles. These include, among others, an ESG Policy, Whistleblower/Vigil Mechanism Policy, Human Rights Policy, Code of Conduct, Risk Management Policy, and Corporate Social Responsibility Policy, all of which are publicly available on the company's website. The company reported zero instances of fines, penalties, disciplinary actions, or complaints related to bribery, corruption, or conflict of interest during FY 2025-26. A BRSR Core Value Chain Workshop was conducted for key suppliers, covering 86% of the relevant value chain partners, to enhance awareness of SEBI's BRSR Core framework and ESG reporting requirements.

The materiality reassessment conducted during FY 2025-26 by an independent third-party agency identified eleven key material issues for the company's business. These include Corporate Governance, Business Ethics, Human Capital Development, Human Rights, Circular Economy, Responsible Investment, Data Privacy and Cybersecurity, Transparent Disclosures, Stakeholder Engagement, Climate Change, and Community Relations. Each issue was assessed for its associated risks and opportunities, with corresponding management approaches documented in the report.

Workforce and Human Capital

As at 31 March 2026, Kirloskar Industries Limited employed a total of 22 employees, comprising 21 permanent and 1 other-than-permanent employee. The company has no workers under employment. Women represented 25% of the Board of Directors (3 out of 12 members) and 50% of Key Managerial Personnel (2 out of 4 KMPs) as on 31 March 2026. The following table presents key workforce metrics:

All 22 employees received training on human rights issues and policies during FY 2025-26. Performance and career development reviews covered 76% of employees (16 out of 21) in FY 2025-26, consistent with the 76% coverage recorded in FY 2025. The return-to-work and retention rates for permanent employees who availed parental leave stood at 100% for both male and female employees during the year. No complaints related to working conditions, health and safety, sexual harassment, discrimination, child labour, forced labour, or wages were filed or remained pending during FY 2025-26.

Environmental Performance

Kirloskar Industries Limited, operating primarily as an investment company, has a limited direct environmental footprint. Total energy consumption from non-renewable sources stood at 174 GJ in FY 2025-26, compared to 253.10 GJ in FY 2024-25. The company reported zero energy consumption from renewable sources in both years. Total water consumption was 163 kiloliters in FY 2025-26. Greenhouse gas emissions are summarised below:

All waste generated during FY 2025-26 was recovered through recycling, with nil waste disposed via incineration, landfilling, or other disposal operations. The company does not have any sites identified as Designated Consumers under the PAT Scheme, and no liquid discharge occurs beyond regular office environment discharge. BDO India Services Private Limited conducted independent assurance of all BRSR Core environmental indicators.

Subsidiary Sustainability Highlights and Value Chain

Avante Spaces Limited, KIL's wholly-owned subsidiary, received the prestigious Platinum Certification from the Indian Green Building Council (IGBC) for its maiden commercial project, 'One Avante' at Avante Business Park Phase-I. During FY 2025-26, One Avante also received three ISO certifications: ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001:2018 (Occupational Health and Safety). Avante was additionally recognised with a Diamond Award for excellence in water management by iNFHRA. The company's second project, 'Infinia' at Avante Business Park Phase-II, has received Platinum pre-certification from both USGBC and IGBC.

On value chain reporting, KIL's total procurement spend for FY 2024-25 stood at ₹13.26 crore. The assessment boundary included 10 suppliers who individually accounted for 2% or more of total procurement spend, cumulatively covering up to 75% of total procurement value, in line with the SEBI Circular dated 28 March 2025. Input material sourced directly from MSMEs and small producers accounted for 14.10% of total inputs by value in FY 2025-26, up from 10.19% in FY 2024-25. All input material was sourced from within India in both years. KIL is affiliated with two national-level trade and industry chambers: the Confederation of Indian Industry and the Confederation of Real Estate Developers' Associations of India (CREDAI).

CSR and Stakeholder Engagement

CSR is applicable to Kirloskar Industries Limited under Section 135 of the Companies Act, 2013. The company's CSR initiatives include sponsoring 151 students for employability-oriented education and skilling through the S.L. Kirloskar CSR Foundation, with 100% of beneficiaries covered. Notably, 43% of the 151 students supported are girls, of whom 10 are orphans and 9 have a single parent, while 73% of total students are from Affirmative Action backgrounds. The company received 6 shareholder complaints during FY 2025-26, all of which were resolved with nil pending at the close of the year. No complaints were received from any other stakeholder group, including communities, investors (other than shareholders), employees, customers, or value chain partners.

Kirloskar Industries Limited has filed the Notice of its 32nd Annual General Meeting (AGM) along with the Annual Report for the Financial Year 2025-26, pursuant to Regulation 30 and Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The AGM is scheduled for Tuesday, 18 August 2026, at 11.30 a.m. (IST), to be conducted through Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The Annual Report is available on the Company's website at www.kirloskarindustries.com .

Standalone Financial Performance for FY 2025-26

On a standalone basis, the Company reported the following key financial metrics for the year ended 31 March 2026. Total Income rose to ₹127.00 crores from ₹120.57 crores in the previous year, while Net Profit stood at ₹77.01 crores compared to ₹78.32 crores in FY 2024-25.

The Company received total dividend income of ₹66.71 crores from investee companies during FY 2025-26, compared to ₹62.80 crores in the previous year. The Profit Before Tax (PBT) stood at ₹99.18 crores against ₹101.57 crores in the prior year.

Dividend Recommendation

The Board of Directors has recommended a dividend of ₹13 per equity share of ₹10 each, representing 130% on face value, for the Financial Year ended 31 March 2026. This is consistent with the previous year's dividend of ₹13 per equity share (130%). The Book Closure period is Wednesday, 12 August 2026 to Tuesday, 18 August 2026 (both days inclusive), with the dividend payment date on or before 17 September 2026.

Subsidiary Performance

Kirloskar Ferrous Industries Limited (KFIL)

KFIL, the material subsidiary of the Company in which Kirloskar Industries holds 45.93% as at 31 March 2026, delivered strong operational and financial performance during FY 2025-26.

The Board of Directors of KFIL declared an interim dividend of ₹3 (60%) per equity share on 10 February 2026 and recommended a final dividend of ₹3 (60%) per equity share for FY 2025-26, bringing the total dividend for the year to 120%.

Avante Spaces Limited

Avante Spaces Limited, the wholly-owned subsidiary, continued the development of Infinia, a Grade A+ commercial office development with a built-up area of approximately 2 million sq. ft., located at Avante Business Park, Kothrud, Pune. The project has received IGBC and LEED Platinum pre-certifications and is targeted for completion by FY 2027-28. The profit (loss) before tax for Avante Spaces for the year under review stood at ₹(18.04) crores. During the year, Kirloskar Industries advanced ₹92.50 crores (net) as an unsecured loan to Avante Spaces for its real estate business.

Key Investment Portfolio and Value Creation

As of FY 2025-26, the Company's book value of investments stood at ₹888 crores, while the market value of investments was approximately ₹6,944 crores. The Company also earned ₹67 crores in dividend income during FY 2025-26 from its portfolio companies. The book value per share has grown from ₹783 to ₹4,672 over the last decade.

AGM Agenda and Key Resolutions

The following items are proposed for consideration at the 32nd AGM:

• Adoption of Audited Financial Statements (Standalone and Consolidated) for FY ended 31 March 2026
• Declaration of dividend of ₹13 per equity share (130%) for FY ended 31 March 2026
• Re-appointment of Mr. Vinesh Kumar Jairath (DIN: 00391684), who retires by rotation
• Re-appointment of Kirtane & Pandit LLP, Chartered Accountants, as Statutory Auditors for a second term of five consecutive years from the conclusion of the 32nd AGM till the conclusion of the 37th AGM (year 2031), at a statutory audit fee of ₹15 lakhs plus applicable taxes and out-of-pocket expenses for FY 2026-2027
• Re-appointment of Mr. Anil Alawani (DIN: 00036153) as Non-Executive Director for a period of one year up to the conclusion of the AGM to be held in 2027

Capital Structure

During FY 2025-26, the Company allotted 96,327 equity shares of ₹10 each upon exercise of Employees Stock Appreciation Rights (ESARs) under the KIL ESARP 2019. Consequently, the Paid-up Share Capital increased from 1,04,13,045 equity shares to 1,05,09,372 equity shares of ₹10 each, standing at ₹10,50,93,720 as at 31 March 2026. The Promoter and Promoter Group held 75,53,065 shares, representing 71.87% of total shareholding as on 31 March 2026.

The remote e-voting period for the AGM begins on Saturday, 15 August 2026, at 9:00 a.m. (IST) and ends on Monday, 17 August 2026, at 5:00 p.m. (IST). The record date for determining members eligible for dividend is Tuesday, 11 August 2026.