Lloyds Engineering Works has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and the National Stock Exchange of India. The filing, dated July 30, 2026, discloses a substantial improvement in energy efficiency, with energy intensity per rupee of turnover dropping to 5.78 from 8.16 in FY25. This reduction occurred despite the company operating 11 plants and 2 offices across India, serving customers in hydrocarbon, chemical, and steel sectors.

The submission was made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report covers standalone and consolidated operations, with assurance provided in-house. Mukesh Rajnarayan Gupta, Chairman, signed the document on May 5, 2026, in Mumbai. The company’s paid-up capital stands at ₹1,48,00,82,086, comprising fully paid-up shares of ₹139,88,11,662 and partly paid-up shares of ₹8,12,70,424.

Energy and Environmental Metrics

The most material operational shift in FY26 was the halving of total energy consumption. Total energy consumed from non-renewable sources fell to 6,082.44 GJ from 12,327.4 GJ in FY25. Electricity consumption from non-renewable sources remained stable at approximately 5,678 GJ, suggesting the reduction was driven by lower fuel or other energy source usage. Water withdrawal decreased significantly to 14,623 kilolitres from 26,738 kilolitres in the previous year, all sourced from third parties. The company operates a 5KL capacity Sewage Treatment Plant, using treated water for gardening.

Air emissions data for FY26 includes NOx at 22.4 Ug/m3, SOx at 15.3 Ug/m3, and Particulate Matter at 64.6 Mg/Nm3. The company states it is compliant with applicable environmental laws, including the Water and Air Prevention and Control of Pollution Acts.

Workforce and Safety

Lloyds Engineering Works employed 438 employees and engaged 216 workers at the end of FY26. Female representation among employees stood at 7.76%, with no female workers reported. The turnover rate for permanent employees declined sharply to 21.58% from 38.10% in FY25, indicating improved retention. Training coverage expanded, with 44.52% of employees receiving skill up-gradation training compared to 69.34% in FY25, though health and safety training coverage rose to 12.10% from 6.97%.

Safety metrics showed zero lost-time injuries for both employees and workers. However, there were 16 recordable work-related injuries among workers in FY26, compared to zero in FY25. The company maintains ISO 45001 certification for occupational health and safety. All permanent workers are members of recognized unions, with 100% membership continuity from the prior year.

Governance and Supply Chain

The company’s supply chain remains concentrated, with 69.79% of purchases made from trading houses, up from 61.27% in FY25. Purchases from the top 10 trading houses accounted for 78.25% of total trading house purchases. The board comprises 12 directors, including two women (16.67%). Key Management Personnel includes one woman (50%).

Deepak Obhan, Vice President – HR, serves as the highest authority responsible for implementing business responsibility policies. The CSR Committee oversees sustainability issues, while the Safety Committee, headed by Vice President Mr. Nair, addresses manufacturing-related environmental and social issues. The company’s CSR initiatives focus on nutrition, partnering with Akshaya Chaitanya to serve over 14,000 meals daily.

Lloyds Engineering Works Limited disclosed on July 28, 2026, that its subsidiary, Lloyds Advance Defence Systems Limited (LADS), has entered into a formal agreement with Flyfocus SP. Z.O.O., a Polish company specializing in the design and development of Unmanned Aerial Systems (UAS). The partnership enables LADS to undertake the licensed manufacturing, marketing, and supply of Flyfocus’s UAS products within India, marking a significant expansion into advanced aerial defence technology. Additionally, the agreement includes a component for joint research and development of new defence products, signaling a long-term strategic collaboration beyond immediate production capabilities.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with relevant SEBI circulars. The filing confirms that there is no shareholding between the two entities, nor are the parties related to the promoter group or group companies in any manner. Consequently, the transaction does not fall under related-party transactions.

Agreement Highlights

The key parameters of the deal between Lloyds Advance Defence Systems Limited and Flyfocus SP. Z.O.O. are outlined below:

Strategic Defence Partnership

The agreement positions LADS as a licensed manufacturer and supplier of UAS products in India, leveraging technology and expertise from its Polish partner, Flyfocus SP. Z.O.O. The inclusion of collaborative R&D on new defence items further broadens the scope of the partnership, pointing to a longer-term technology development relationship between the two entities. This development reflects the subsidiary's intent to strengthen its footprint in India's growing defence manufacturing landscape, particularly in the unmanned aerial systems segment, which has seen increasing strategic importance in modern defence operations. The absence of special rights such as director appointments or capital structure restrictions indicates a standard commercial licensing arrangement focused on operational execution and innovation.