Demand conditions across our key end markets evolved gradually throughout the year. In the first half of 2025, aluminium and steel producers maintained cautious production schedules as customers balanced inventory levels against uncertain demand. Aluminium smelters in select regions showed sequential improvement, while steel production trends remained uneven across regions, depending on infrastructure activity and export opportunities. These dynamics directly affected offtake levels in our Carbon segment.

In the construction sector, which is the primary growth driver of our Cement segment, market conditions remained stable yet moderated. While public infrastructure works and ongoing housing activity provided a supportive base, overall demand in South India was subdued, necessitating continued pricing discipline in an increasingly competitive environment.

Demand for specialty chemicals and advanced materials was initially measured, as customers adopted a conservative procurement approach. However, order flows began to stabilise in the second half, leading to a gradual recovery across several product categories in our Advanced Materials segment.

For RAIN, these market trends translated into sequential improvement rather than broad-based growth, with stronger customer engagement and steadier order flows supporting improved operational momentum later in the year.

During 2025, Rain Industries Limited reported consolidated revenue from operations of ₹169,458 million, EBITDA of ₹22,749 million, and Profit after tax of ₹1,178 million. While revenue growth remained moderate, earnings improved as we restored balance between raw material costs and finished product pricing, all while maintaining stronger operating discipline.

In the Carbon segment, stable feedstock conditions and enhanced spread management supported earnings, particularly in the second half of the year. Advanced Materials benefited from better plant utilisation and tighter cost management despite uneven demand, while Cement maintained margins through judicious pricing and energy optimisation.

Working capital management was a core priority. We aligned inventory levels with realistic demand expectations and monitored receivables closely to support cash conversion and liquidity. Although net debt remained elevated due to investments undertaken in earlier cycles, improved EBITDA strengthened leverage metrics.

With approximately US$340 million in liquidity (includes cash balances and undrawn loan facilities) at yearend and no significant maturities until 2028, the Company sustained financial stability while positioning for gradual deleveraging.

The financial outcomes of 2025 reflect deliberate execution across markets, operations and finance, rather than reliance on temporary market tailwinds.

During the reporting year, we made strategic investments to strengthen the fundamentals of our business. Maintenance capex, safety investments and operational reliability continued to be non-negotiable across facilities, while growth capital was deployed selectively in line with clear return thresholds and regional demand visibility.

The brownfield cement plant expansion in Telangana was approached with similar prudence. Execution has been phased in line with market absorption, and no expenditure has been incurred to date. We continue to evaluate opportunities to optimise project costs while preserving the strategic advantage this expansion offers.

Balance sheet was further strengthened through steady cash generation, judicious capital deployment and proactive debt management.

With no near-term maturities, RAIN retains financial flexibility while earnings growth supports gradual deleveraging.

To sum up, this year was characterised by a focus on resilience and balance sheet stability rather than aggressive expansion.

In Carbon, operations remained stable despite fluctuations in demand. Calcination volumes held steady, and a sequential improvement in offtake during the second half supported better capacity utilisation. Meanwhile, efforts to optimise yields and manage costs contributed to margin recovery.

In Advanced Materials, production planning was closely aligned with demand, and process stability initiatives were undertaken to reduce variable cost intensity. Efficiency improvements were instrumental in sustaining margins amid cyclical market conditions. The segment also advanced strategic initiatives in next-generation energy storage materials in North America and Europe, positioning it for long-term growth.

The Cement business maintained production and dispatch volumes, supported by consistent regional demand. Energy optimisation, logistics coordination and prudent cost management underpinned stable performance.

Across all three segments, stronger supply chain coordination and more refined procurement and logistics planning helped mitigate input volatility and minimise operational disruptions.

Operational efficiency was central to margin recovery during the year. In the Carbon segment, closer integration between procurement and downstream production improved cost visibility and reduced exposure to price fluctuations. Energy efficiency initiatives, including fuel mix optimisation, heat recovery and process enhancements, contributed to greater cost stability. Automation and digital monitoring were scaled in select facilities, enabling predictive maintenance, reducing downtime and improving asset utilisation.

Integration across businesses provided leverage in procurement and optimised shared services. Over time, cost discipline has become embedded in daily operations rather than relying on episodic interventions, supporting performance improvement throughout the course of the year.

We made steady progress against the priorities we outlined, including stabilising margins, strengthening the balance sheet and pursuing disciplined growth across all segments.

In Carbon, the priority was protecting spreads and sustaining customer relationships rather than pursuing volume growth. Advanced Materials focused on product mix optimisation and engagement in higher-value applications. Cement emphasised measured capacity expansion while sustaining regional competitiveness.

Progress was measured through operational consolidation and incremental strengthening of competitive positioning, without major portfolio restructuring.

In the Carbon segment, the calcined petroleum coke and coal tar pitch businesses adjusted to aluminium and steel production patterns. Improved raw material affordability supported spread management, while pricing and contracting strategies were implemented, maintaining a cautiously optimistic stance.

Advanced Materials gained traction in specialty applications. Despite seasonal and regulatory pressures in Europe, including US tariffs, high energy and labour costs, and subdued industrial activity, the segment remained competitive and viable for the long term.

Although monsoon conditions in South India extended longer than usual, Cement experienced steady regional demand. Pricing discipline and cost management sustained margins. Brownfield expansion planning continued cautiously, with the project expected to benefit from medium-term regional growth.

Across facilities, energy optimisation initiatives contributed to lower operating costs and emissions. In Carbon and Advanced Materials, process advancements were implemented to curb waste and enhance resource utilisation. The Cement business continued to emphasise energy efficiency and clinker optimisation to improve operational performance.

Furthermore, we strengthened environmental and safety governance through periodic reviews and internal monitoring. Sustainability considerations continued to inform both capital and operational decision-making.

Our operational performance ultimately relies on the strength of our people and the alignment of our teams across locations. During the year, we strengthened leadership engagement across our global facilities through structured performance reviews and clearer accountability frameworks.

Capability-building initiatives focused on improving technical skills, plant operations and safety practices across the Board. As a result of these efforts, our TRIR improved to 0.11, reflecting a strong prevention-focused safety culture. Workforce stability and strong alignment across teams led to consistent performance improvement.

Going forward, we will continue to focus on margin protection, cost efficiency and cash generation, building on the operational and financial discipline we achieved in 2025. Prudent capital allocation and earnings-led deleveraging will remain central to strengthening the balance sheet.

Operational reliability, customer retention and disciplined contracting will guide day-to-day decisions across markets. Our planning incorporates flexibility to respond to regional variations in demand, recognising that global recovery is likely to stay uneven.

The progress achieved in 2025 reflects steady improvement in RAIN's operational and financial foundation. The return to profitability, coupled with stronger EBITDA and liquidity, demonstrates the impact of disciplined execution and operational focus.

Operating in cyclical industries requires resilience, cost control and financial prudence. At RAIN, we remain committed to delivering reliable products to customers, maintaining responsible engagement with lenders and creating sustainable value for shareholders.

Our performance this year establishes a strong foundation for continued stability, calibrated growth and the continued strengthening of the Company's competitive position.