Goa Carbon Ltd

Dear Shareholders,

It is my privilege to address you through the 57^th Annual Report of Goa Carbon Limited, and to share an overview of the Company's performance, the evolving business environment, and our outlook for the future.

Global and Indian Business Environment

The global economic landscape remains uncertain, shaped by persistent geopolitical tensions, volatile commodity markets, and evolving trade dynamics. The recalibration of global supply chains and the emergence of new trade blocs have made the operating environment more complex for industrial players.

Global economic growth is projected to moderate to 2.8% in 2025, as per the International Monetary Fund (IMF), amid a persistently uncertain trade policy environment. Growth in both the United States and China—the world's largest economies—is expected to decelerate, with the pace and extent of the global slowdown likely influenced by the evolution of U.S. tariff measures. Meanwhile, the disinflationary trend is anticipated to continue, albeit at a slower rate, with global inflation projected to ease from 5.7% in 2024 to 4.3% in 2025. However, heightened trade policy uncertainty remains a key downside risk to the global economic outlook.

In India, while macroeconomic fundamentals remain broadly stable, there is an increasing emphasis on regulatory reforms and sustainability imperatives. These changes, although challenging in the short term, are aligned with long-term national goals and will ultimately benefit responsible and resilient businesses like ours.

The calcination industry has been facing input cost volatility, logistical challenges, and regulatory shifts. Aluminium production, a key demand driver for our products, has experienced moderate growth, although the pace has been somewhat restrained due to global headwinds. Further, the import quota regime for Raw Petroleum Coke (RPC) and Calcined Petroleum Coke (CPC) continues to impact supply chains and operational flexibility.

Goa Carbon Performance Update–FY2025

Against the aforementioned challenging backdrop, Goa Carbon remained focused on maintaining operational stability and delivering value to all stakeholders. This year was marked by pressures on input costs and subdued product realisations. In response, the Company undertook proactive measures, including rigorous monitoring of business conditions, enhanced customer engagement, and initiatives to optimise costs.

FY2025 was particularly difficult, with multiple headwinds impacting overall performance. Revenue from Operations declined sharply to 508.47 Crore from 1,057.31

Crore in FY2024—a drop of nearly 52%, primarily due to weak market demand and lower offtake from key customers. Profit Before Tax (PBT) turned negative at (28.40) Crore, as against a profit of 115.71 Crore in the previous year, reflecting a sharp decline in revenue and sustained margin pressure. Overall, the Company faced a challenging operating environment, characterised by adverse market conditions and lower capacity utilisation. The management is actively implementing strategic and operational initiatives aimed at restoring growth and improving margins in the forthcoming year.

We recognise that navigating such a demanding landscape requires relentless focus on efficiency and resilience. The management remains fully committed to enhancing internal processes, upgrading systems, and driving higher productivity across all our manufacturing facilities.

Regulatory Compliance and Sustainability

Your Company remains firmly aligned with India's evolving legal and environmental framework and is duly compliant with the latest corporate and environmental regulations, including those mandated by the Ministry of Environment, Forest and Climate Change (MoEF&CC). Notably, Flue Gas Desulphurisation (FGD) units have been installed at the ^{plants to effectively control particulate matter and SO}2 emissions, in accordance with MoEF&CC norms.

Our commitment to sustainability remains steadfast. We continue to reduce our carbon footprint, optimise energy consumption, and adopt environmentally responsible practices. I am pleased to report that our executive leadership is actively exploring global best practices to further enhance productivity and drive cost optimisation.

Last year we launched 'gcarb+', a breakthrough product that is gaining strong traction in the recarburiser and carbon additive sectors. Representing our dedication to quality, sustainability, and industry leadership, 'gcarb+' delivers superior performance through the use of high-grade global raw materials. With low sulphur content, the product supports lower emissions and reinforces our environmental objectives.

Our Environmental, Social, and Governance (ESG) initiatives are central to our vision of environmental stewardship and community development. As part of our afforestation programme, we have planted thousands of trees across our site locations, achieving over 40% cumulative green cover across 47 acres. At our Goa plant, we have also embarked on an ambitious Miyawaki forest project targeting 10,000 trees, over 2,000 of which were planted in the first phase, successfully completed ahead of the monsoon.

Our collaboration with BITS Pilani, Goa Campus, continues to deepen. Following a study that confirmed

GCL's emissions are well within environmental norms, we are now working with the institute to optimise plant operations through advanced computational fluid dynamics (CFD) modelling. This project is at an advanced stage and is expected to further strengthen our efficiency and sustainability efforts.

Corporate Social Responsibility

Our Corporate Social Responsibility (CSR) initiatives reflect our unwavering commitment to inclusive and sustainable development. Across all our plant locations, the Company has implemented meaningful projects in the areas of education, sanitation, sports, and rural upliftment, demonstrating our strong sense of purpose as a responsible corporate citizen.

In FY2025, we launched several high-impact CSR projects focused on education, women empowerment, sports, and cultural development. With community development investments exceeding 175 Lakh, we remain dedicated to building a brighter and more equitable future for the communities we serve.

Our partnerships with esteemed implementing agencies such as the Bansidhar & Ila Panda Foundation (BIPF), GPR Strategies and Solutions Private Limited, and the Studeasy Foundation have been instrumental in delivering impactful projects across Goa, Paradeep, and Bilaspur. Key initiatives during the year included support to government schools, provision of safe drinking water and sanitation facilities in surrounding villages, and the promotion of sports and cultural activities.

We take pride in supporting our Goodwill Ambassador,

Aarush Pawaskar, a 14-year-old badminton prodigy, who continues to shine in the sport. A notable initiative during the year was the installation of a paper recycling unit at the Central Jail in Colvale, Goa, aimed at promoting inmate rehabilitation and skill development.

Another significant effort was Project Unnati, focused on empowering rural women through financial literacy, livelihood development, and life skills training. The programme also addressed essential areas such as WASH (Water, Sanitation, and Hygiene), nutrition, and reproductive healthcare education, enabling women to lead healthier, more informed, and self-reliant lives.

The Way Forward

Customer expectations continue to evolve, with growing emphasis on quality, reliability, and environmental compliance. At Goa Carbon Limited, we engage closely with our customers to better understand their evolving needs and co-create value-added solutions that foster long-term partnerships.

The Reserve Bank of India projects GDP growth at 6.5% for FY2026, in line with the growth rate for FY2025. This growth is expected to be driven by a revival in urban demand and a resilient services sector, although weaker external demand conditions may pose challenges. CPI inflation is expected to ease from 4.6% in FY2025 to 4.0% in FY2026, with monetary policy likely to remain supportive of growth. However, global trade disruptions and a broader economic slowdown remain key downside risks.

Despite these external headwinds, our strategic direction remains focused and future-ready. We are committed to:

Enhancing operational efficiency

Optimising cost structures Deepening customer relationships

Innovating with alternative carbon solutions and diversifying our customer base Embedding sustainability across all aspects of our operations

We remain confident that our disciplined approach, agility, and unwavering commitment to excellence will enable us to navigate current business challenges and emerge stronger in the years ahead.

A Note of Gratitude

On behalf of the Board of Directors, I would like to extend my sincere gratitude to all our stakeholders, employees, customers, government authorities, and you, our valued shareholders, for your continued support and trust in Goa Carbon Limited.

Let us move forward together, with renewed purpose and resilience, towards a more sustainable and prosperous future.

With warm regards,