Dear Team,

Our recent Q3 Townhall celebrated a phenomenal quarter across the group. We are incredibly proud to announce that the engineering division secured new domestic orders worth over ₹3,526 crore. These orders span vital sectors including industrial plants, domestic power systems, and expansive residential building projects.

Furthermore, our year-to-date order intake has comfortably surpassed the ₹11,000 crore milestone. This robust performance is a direct result of the relentless dedication, strategic planning, and flawless execution demonstrated by our teams on the ground and in the corporate offices. The leadership team acknowledges the extraordinary effort put in by every single employee to navigate complex regulatory environments and supply chain challenges while delivering projects on time and above quality standards.

During the townhall, our CFO highlighted several key metrics that underline our financial health. Our consolidated revenue grew by 18% year-over-year, driven largely by exceptional execution in the Transmission & Distribution (T&D) sector and strong sales in our premium residential portfolio. The operating margins have also seen a healthy expansion of 120 basis points, reflecting our ongoing commitment to cost optimization and operational efficiency.

Strategic Outlook for Q4 and Beyond:

Looking ahead to Q4, we will maintain our sharp focus on operational efficiency and sustainable growth. The leadership team is confident that with our current momentum, we are well-positioned to exceed our annual projections. Our strategic priorities for the upcoming quarters include:

• Digital Transformation: Accelerated implementation of SAP S/4HANA across all subsidiaries to unify our financial reporting and supply chain management. This will provide real-time data visibility and significantly reduce procurement cycle times.
• Sustainability Initiatives: Rollout of our new ESG framework, aiming to reduce water consumption at construction sites by 15% and increase the use of recycled materials in our B&F projects. We are also pursuing LEED Gold certification for all upcoming commercial developments.
• Workforce Development: Expanding the Kalpataru Leadership Academy to include mid-management tier training, focusing on adaptive leadership, project risk management, and cross-functional collaboration.
• Market Expansion: Active bidding for international EPC contracts in the MENA region, capitalizing on our recent pre-qualification successes and strategic joint ventures.

The executive committee also addressed questions regarding the recent tax notice from the Eswatini Revenue Service. We want to assure all employees and stakeholders that our legal and financial teams are handling the matter with the utmost diligence. We are confident in our compliance posture and expect a swift resolution without material impact on our global operations.

In closing, the Board of Directors extends their deepest gratitude for your continued hard work, resilience, and commitment to excellence. The success of Kalpataru is fundamentally built upon the talent and integrity of its people. Let us carry this momentum forward and finish the fiscal year stronger than ever.

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