Annual Report

Mastering Challenges Creating Value Integrated Annual Report 2025-26 DALMIA BHARAT SUGAR AND INDUSTRIES LIMITED Overview Strategy Governance Capitals Reports Financials What’s Inside? 04 Capitals 42-97 Financial Capital 42 Manufactured Capital 48 Intellectual Capital 58 Natural Capital 70 01 Overview 4-26 Social and Relationship Capital 78 Human Capital 88 Mastering Challenges, 4 Creating Value Board of Director’s and Key 92 Managerial Personnel About this report 6 Awards and Recognitions 94 Who We Are: 8 GRI Index Alignment Table 96 Five-Year Performance Snapshot 12 Key Developments & Highlights 14 05 Reports 98-205 Strategic Review by 18 Management Discussion & 98 Managing Director Analysis Operating Context 22 Boards’ Report 120 Corporate Governance Report 142 Business Responsibility & 166 Sustainability Report 02 Strategy 24-37 06 Financials 206-271 Stakeholder Engagement 24 Standalone Materiality Matters 26 Independent Auditors’ Report 206 Strategic Pillars 30 Standalone Financial Statements 218 Our Business Model 32 Consolidated How We Create Value 36 Independent Auditors’ Report 272 Consolidated Financial Statements 280 AGM Notice 336 Forward-Looking Statement This Annual Report contains forward-looking statements that involve risks, uncertainties, and assumptions. These statements are 03 Governance 38-41 based on the current expectations, estimates, projections, and beliefs of the management of Dalmia Bharat Sugar and Industries Limited as of the date of this report and are not guarantees of future performance. Principles of Oversight 38 Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, strategies, Enterprise Risk Management 40 plans,prospects, future financial performance, anticipated economic conditions, expected industry developments, investment plans, operational efficiencies, sustainability initiatives, and regulatory outlooks. These statements can generally be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “seeks,” “may,” “will,” “should,” “could,” “would,” and similar expressions or variations thereof. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including but not limited to: global and domestic economic conditions; geopolitical developments; changes in laws and regulations; market demand and supply dynamics; raw material price volatility; interest and exchange rate fluctuations; technological changes; availability of skilled personnel; competitive landscape; environmental, social and governance (ESG) risks; and other known or unknown risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements. Dalmia Bharat Sugar and Industries Limited undertakes no obligation to update or revise any forward-looking statements publicly, whether as a result of new information, future events, or otherwise, unless required by applicable law. This report should be read in conjunction with the Company’s audited financial statements and notes thereto, and all other information provided in accordance with applicable regulations. 2 Dalmia Bharat Sugar and Industries Limited Integrated Annual Report 2025-2026 Dalmia Bharat Sugar and Industries Limited Integrated Annual Report 2025-2026 3 Overview Strategy Governance Capitals Reports Financials Mastering the Constraints Creating Tangible Value for Stakeholders of our Landscape At DBSIL, Mastery is not an abstract concept; it is the primary driver of our financial performance. Our focus on asset We recognize that we cannot control optimization and thermal efficiency - engineered through external policy shifts or global interventions like the Jawaharpur steam-saving project - is commodity cycles. Instead, we have strengthening operational resilience, margin protection and engineered our business model to be disciplined capital productivity. Furthermore, as we reach inherently agile. By scaling our grain- saturation in domestic clusters, we have secured our first global Mastering Challenges, based ethanol capacity to 350 KLPD, footprint in Tanzania. This “Year Zero” for our international we have mastered feedstock agility, Manufactured Capital grants us high-strategic optionality in providing a robust natural hedge against a high-growth, sugar-deficit geography, ensuring our growth Creating Value regulatory restrictions on cane juice trajectory is decoupled from domestic limitations. diversion. By completing the demerger of our non-core refractory and travel Through this disciplined synergy of digital intelligence, structural units, we have mastered strategic focus, focus, and global aspirations, we are doing more than navigating Our legacy as a leading integrated sugar and bio-energy producer has been defined by our ability to transforming into a leaner, “pure-play” a difficult cycle. We are actively engineering our future - building build robust physical infrastructure and deep-rooted agricultural relationships. However, in today’s enterprise with absolute segmental a resilient enterprise where every challenge is viewed as an landscape, industrial scale is no longer sufficient to guarantee growth. We operate in a sector clarity for the global investment opportunity to master our craft and create enduring value for our governed by finite agricultural limits, rigid policy boundaries, and extreme agro-climatic variability. community. shareholders, our farmers, and the planet. For Dalmia Bharat Sugar and Industries Limited (DBSIL), the path to outperformance does not lie in simply navigating these constraints - it lies in Mastering them. Our theme for the FY2026 Integrated Annual Report - “Mastering Challenges, Creating Value” By combining digital intelligence with asset - reflects a fundamental evolution in our corporate operating system. While FY2025 was about optimisation, we are reducing error margins, installing the digital hardware of transformation, FY2026 marks our transition from “Metal to Mind.” We have moved beyond task-based automation into a state of Diagnostic Mastership, where AI- improving asset velocity, and creating sustainable driven forecasting and real-time cognitive analytics allow us to suppress error margins and maximize value for shareholders, farmers, and communities. asset velocity. 4 Dalmia Bharat Sugar and Industries Limited Integrated Annual Report 2025-2026 Dalmia Bharat Sugar and Industries Limited Integrated Annual Report 2025-2026 5 Overview Strategy Governance Capitals Reports Financials Overview ` About this report Framing Our Integrated Narrative: Mastering Transparency Guiding Principles in Action Global Standards and To ensure the integrity of this report, we adhere to the IIRC’s core guiding principles, adapted Alignment: Embracing for our FY2026 strategic context: Global Best Practices 1. Connectivity of Information: We use a “Capitals Linkage” framework to show how social This Integrated Annual Report for FY2026 is anchored in our strategic theme, “Mastering trust (Social Capital) and digital foresight (Intellectual Capital) act as force multipliers for At DBSIL, we believe that transparency is the Challenges, Creating Value.” It serves as a definitive record of Dalmia Bharat Sugar our physical assets. primary conduit for “Mastering Stakeholder and Industries Limited (DBSIL) evolution into a tech-led, pure-play agro-energy leader. Trust.” Our reporting philosophy is anchored in 2. Strategic Focus and Future Orientation: The report articulates how our “Year Zero” in providing a clear, data-driven narrative of how In a landscape defined by extreme agro-climatic variability and policy shifts, this Tanzania and our entry into the CBG (Compressed Bio Gas) sector de-risk our long-term we convert regulatory challenges into durable report illustrates how we have moved beyond foundational investments to a state of growth trajectory. value. W [Showing first 8,000 characters — download PDF for full document]