GOCL Corporation Ltd

Dear Stakeholders,

This year marks a significant turning point in GOCL's journey.

While the current Explosives and Energetics business has been central to our identity, it faces inherent limitations in terms of scalability.

The market is shaped by a dominant buyer, which restricts our ability to expand and grow significantly.

Furthermore, the rapid urbanisation and expansion of residential developments around our Kukatpally premises, once a relatively isolated location, have introduced significant operational risks. In light of these circumstances, the Board had earlier resolved to cease operations at the Kukatpally site and to consolidate the entire Explosive and Energetics business at our Rourkela facility, which is better suited for such operations.

After extensive deliberations, your Board has taken a well-considered decision to divest the Explosives and Detonators business and reorient our focus towards sectors that offer higher growth potential and enhanced value creation for shareholders. Accordingly, shareholders have overwhelmingly approved the divestment of our subsidiary, IDL Explosives Limited.

The divestment, along with the monetisation of our land at Kukatpally, Hyderabad, expected to conclude shortly, has substantially strengthened our financial position. It has also provided us with the necessary resources to identify and pursue new business opportunities.

Your Board is actively evaluating multiple avenues that are scalable, future-orientated and dovetail with the aspirations of a ‘Viksit Bharat'. We look forward to sharing further updates on these developments with you in the near future.

As a consequence of the Kukatpally land monetisation, our Electronics Manufacturing Services (EMS) business is being relocated to alternate company- owned land near Hyderabad. This move will enable us to fully realise the expansion and growth potential of the EMS business. An appropriate capex has been allocated for the project and the new facility is expected to be operational by Q3 of FY26.

The Board is confident that this next chapter in GOCL's journey will be defined by innovation, responsibility and pride, while our other business verticals continue to guide and strengthen our overall growth trajectory.

We would like to take this opportunity to extend our heartfelt appreciation to all our employees for their tenacity, belief in our vision and unfaltering support during this period of transformation.

We recognise that the road ahead may present its own set of challenges.

However, with a clear strategy and the commitment of our people, we are confident that it also holds great opportunity and promise.

Let us continue to build a GOCL that is cleaner, stronger and ready for the future.