Annual report of the Company for the financial year 2025-26 containing inter-alia, the notice of the 40th Annual general Meeting scheduled on Saturday, Septmeber 26, 2026.

CIN: L40109TG1986PLC006745 ® D.No. 8-2-616, Plot No. 4, Behind Minerva Grand Hotel, Road No. 11, Banjara Hills, Hyderabad - 500 034, T.S., INDIA HBL ENGINEERING LIMITED Phone : +91-40-66167777 (Formerly known as HBL Power Systems Limited) Date: September 3, 2026 The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange ofI ndia Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street Bandra (East) Mumbai-400001 Mumbai - 400 051 Scrip code: 517271 Scrip code: HBLENGINE Dear Sir/Madam, Sub: Notice of 40™ Annual General Meeting and Annual Report for the Financial Year 2025-26 Ref: Regulation 30 and 34 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 Pursuant to Regulation 30 and 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Notice convening 40th Annual General Meeting and the Annual Report for the financial year 2025-26 has been circulated to the shareholders through electronic mode only. The 40" AGM will be held on Saturday, September 26, 2026 at 03.00 P.M (1ST) through Video Conference (VC) / Other Audio Visual Means (OAVM). The Notice of AGM and the Annual Report are made available on the Company's website at https://hbl.in/hblannualreport2026.pdf The schedule of AGM is as set out below: Particulars Details Benpos Date for circulation of Notice August 28, 2026 Day, date and time of 40" AGM Saturday, September 26, 2026 at 3:00 PM Date of Annual Report circulation through e-mail | September 03, 2026 Cut Off Date (e-Voting) Friday, September 11, 2026 Remote e-Voting Start day, date and time Wednesday, September 23, 2026 at 9:00 AM Remote e-Voting end day, date and time Friday, September 25, 2026 at 5:00 PM AGM e-voting result date On or before Monday, September 28, 2026 This is for your information and records. Thanking you For HBL Engineering Limited (formerly HBL Power Systems Limited) GBS Naidu Company Secretary Encl: Annual Report 2026 Regd. Office : HBL ENGINEERING LIMITED Road No.10, Banjara Hills, Hyderabad - 500 034. Website : www.hbl.in HBL ENGINEERING LTD ANNUAL REPORT 2025-26 ELECTRIC DRIVE TRAIN FOR HEAVY COMMERCIAL VEHICLES MOTOR BATTERY MODULE ONE OF THE SEVERAL ELECTRONICS PRODUCTS NEEDED FOR ELECTRIC DRIVE HBL DESIGNED, DEVELOPED AND MANUFACTURED IN-HOUSE CONTENTS OF ANNUAL REPORT AND PAGE NUMBERS IN THE REPORT CHAIRMAN’S MESSAGE STANDALONE CONSOLIDATED Chairman’s message 01 FINANCIAL STATEMENTS FINANCIAL STATEMENTS STATUTORY REPORTS Independent Independent 129 192 Management Discussion & auditor’s report auditor’s report Analysis Balance sheet 140 Balance sheet 200 ESG Summary Report 18 Statement of profit & loss 141 Statement of profit & loss 201 Corporate information 24 Notice 25 Cash flow statement 142 Cash flow statement 202 Directors’ report 40 Statement of changes in Statement of changes in 144 204 Report on corporate equity equity governance Notes forming part of Notes forming part of the Business responsibility and 85 the standalone financial 145 consolidated financial 205 sustainability report statements statements KEY INFORMATION OF PREVIOUS FIVE FINANCIAL YEARS (D in Crs) Particulars 2021-22 2022-23 2023-24 2024-25 2025-26 Financial performance Revenue 1,221 1,350 2,209 1,946 3,252 Tax 29 31 91 94 271 Profit after Tax 89 95 264 267 797 Financial information Net Worth 872 956 1,205 1,458 2,172 Net cash from operations 61 122 284 227 713 Debt to equity 0.07 0.09 0.05 0.04 0.03 Value of Exports 258 214 291 453 520 Value of Imports 107 135 164 144 253 Per share data(as on March 31) Earnings Per Share 3 3 9 10 29 Book Value 31 34 43 53 78 Dividend (interim + Final) 0.40 0.45 0.50 1 3 (face value of H1 per share) Shareholding related information (as on March 31) Number of Shareholders 1,43,984 1,74,854 2,93,512 3,90,313 3,40,740 Promoters’ shareholding (%) 59 59 59 59 59 Other information Human Resources 1,663 1,720 1,875 2,152 2,455 CSR Spending 1 2 2 4 6 CHAIRMAN’S MESSAGE What Does HBL Do? HBL organizes engineering talent, To identify technology gaps in India it can fill, To manufacture engineering intensive products, To grow profitably. Why & How? Technology gaps in India exist when a product is either fully imported into, or assembled in India, depending on foreign companies for supply of proprietary items, through some type of foreign collaboration. HBL selects opportunities for profit in technology gaps which it can fill. Owning Technology enables sustained competitive advantage, which is necessary for profit in manufacturing. Licensing foreign technology is an easier, but not as profitable. HBL relies on engineering talent to fill technology gaps through R&D. At HBL, engineering includes development of both, the products and the customised equipment made in-house. This reduces capital cost, which makes production even at small quantities viable initially, creating profitable niches. Three Business Segments In the last 40 years, HBL has filled multiple technology gaps (it has failed in a few). The resulting businesses fall into three very different Business Segments. The common factor has been using engineering for technology development. Perspectives on each business are shown further below, except for those in exploratory and R&D stages. #1. Industrial Electronics Segment: Three Business Units z Rail Signalling, Kavach, TMS/CTC z Electric Drive trains (Motors & Batteries vehicle electronics for Trucks +maritime) z Other Industrial Electronics Products. Now in exploratory/R&D stage. #2. IndustrialBatteries Segment: Three Business Units z Lead Batteries z Nickel Cadmium Batteries z Lithium Batteries #3. Defence Businesses Segment: Three Business Units z Batteries (for Aircraft, Missiles, Torpedoes, Submarines, Battle Tanks,….) z Electronic Fuzes for ammunition z Special Defence Products. Now in exploratory /R&D stage HBL’S PRODUCT RANGE The product range of HBL puzzles all those who become aware of it. However, this product range is the result of a logical business model which was consistently applied. A single product cannot grow every year, and growth rates vary. So, a portfolio was developed with related products (related in both technology and market extensions). A portfolio reduces variability and stabilizes the overall business; vulnerability to the environment is reduced. Product market choice was and is, based on these criteria: z Technology should be the basis of sustained competitive advantage; avoid products where technology is easily available. z Develop the technology needed, appropriate to the size of the Indian market, by R&D in-house. z Enter only Niche markets, which are (at that time) too small for big companies and too difficult for small companies. Begin small; then grow modularly in steps. z Avoid capital intensive products and B2C businesses. Pursue only Engineering Intensive businesses. z The goal is to be #1 or #2 in a market of reasonable size; or #3 in a large market. If this is not possible, do not enter, or exit. Likely Scenario for FY30 and Beyond (Not a Prediction) Sales and PBT Growth during the next few years should not be expected to be uniform; they will vary. Quarter to quarter variations should be expected. Of the nine business units, the four units that contributes most to sales in the next four years are Kavach, Industrial Nickel Cadmium batteries, electronic fuzes and electric drive trains for trucks. Industrial electronic products and specialdefence products, which are currently in the development phase will be commercialised by FY 30 and sustain growth thereafter. Because of all the R&D and business development already done, the current businesses should together achieve more than 5,000 Crs in total sales in FY 2030. ANNUAL REPORT 2025-26 CHAIRMAN’S STATUTORY FINANCIAL MESSAGE REPORTS STATEMENTS USE OF SURPLUS CASH Most of HBL’s current businesses will continue to grow, at a smaller rate as the base sales of each business become [Showing first 8,000 characters — download PDF for full document]