Disclosure of material issue

McNally Bharat Engineering Company Limited CIN: L45202WB1961PLC025181 Registered Office: Ecospace Campus 2B 11F/12 New Town Rajarhat North 24 Parganas Kolkata-700160 Telephone +91 33 68311001/+91 33 68311212 Email: mbe.corp@mbecl.co.in Website: www.mcnallybharat.com An ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 Certified Company 11th August 2026 The National Stock Exchange of India Limited Exchange Plaza, 5th floor, Plot # C/1, ‘G’ Block Bandra Kurla Complex, Bandra (East) Mumbai – 400 051. BSE Limited Corporate Relations Department 1st Floor, New Trading Ring, Rotunda Building Phiroze Jeejeebhoy Towers, Dalal Street Fort, Mumbai – 400 001 Dear Sir/Madam, Sub: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”). Scrip Code/Symbol: 532629 / MBECL Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”), read with Para A of Part A of Schedule III thereto, we wish to inform that the Hon’ble High Court of Delhi, vide its judgment dated 3rd August 2026 in O.M.P. (COMM) 362/2018, in the matter of McNally Bharat Engineering Company Limited vs. Metso India Private Limited, has dismissed the petition filed under Section 34 of the Arbitration and Conciliation Act 1996, as having become infructuous and directed to release to the Company the amount deposited with the Court, together with accrued interest. The Order was received by the Company on 10th August 2026. The details as required under Regulation 30 of the SEBI Listing Regulations read with Clause 20 of Para A of Part A of Schedule III and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 is enclosed herewith. This is for your information and record. Yours faithfully, For McNally Bharat Engineering Company Limited Indrani Ray Company Secretary Encl: As above Page 1 of 2 McNally Bharat Engineering Company Limited CIN: L45202WB1961PLC025181 Registered Office: Ecospace Campus 2B 11F/12 New Town Rajarhat North 24 Parganas Kolkata-700160 Telephone +91 33 68311001/+91 33 68311212 Email: mbe.corp@mbecl.co.in Website: www.mcnallybharat.com An ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 Certified Company Details as required under Clause 20 of Para A of Part A of Schedule III of Regulation 30 of the SEBI Listing Regulations read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 Sl. Particulars Details 1 Name of the Authority Hon’ble High Court of Delhi 2 Nature and details of the action(s) The Hon’ble Court held that the claim of Metso India taken, or order(s) passed Pvt. Ltd. arising out of the arbitral award stood extinguished pursuant to the approval of the Resolution Plan of the Company under the Insolvency and Bankruptcy Code, 2016, as the said claim was not part of the approved Resolution Plan. Further, the Hon’ble Court has directed the Registry to release to the Company the amount of Rs.5.52 crore deposited with the Court, along with interest accrued thereon in the Fixed Deposit. 3 Date of receipt of direction or Copy of the Order received by the Company on 10th order, including any ad-interim or August 2026. interim orders, or any other communication from the authority 4 Details of the violation(s) / Not applicable. The order is a favourable disposal of contravention(s) committed or the Company's own petition and does not record or alleged to be committed allege any violation or contravention by the Company. 5 Impact on financial, operation or The Order is favourable to the Company. Pursuant to other activities of the listed entity, the judgment, the claim of Metso India Pvt. Ltd. quantifiable in monetary terms to arising from the arbitral award dated 05 May 2018 the extent possible stands extinguished, and no further liability survives against the Company in respect thereof. The Company also becomes entitled to release of the amount of approximately Rs. 5.52 crore deposited with the Hon'ble Court, together with accrued interest, which shall accrue as an asset/cash inflow to the Company upon actual release by the Court Registry. There is no material adverse impact on the financial, operational or other activities of the Company on account of this order. Page 2 of 2