Linde India Ltd

Dear Shareholders,

I am pleased to present Linde India's Annual Report for the financial year ended March 31, 2025, marking another significant chapter in our journey as India's leading industrial gases company. As I reflect on the past year, I am struck by the remarkable resilience and adaptability our organization has demonstrated in navigating a complex global environment characterized by geopolitical tensions, supply chain disruptions, and evolving energy transition demands.

The global economic landscape in FY 2024-25 has been marked by cautious optimism tempered by persistent challenges. While the world economy achieved a modest 2.8% growth, it continues to grapple with trade uncertainties, elevated inflation, and geopolitical tensions that have reshaped international commerce. The International Monetary Fund's latest projections suggest a gradual recovery to 3.0% growth in 2025-26, though downside risks remain elevated due to escalating trade barriers and heightened policy uncertainty.

Against this backdrop, India has emerged as a beacon of stability and growth. Our nation's economy demonstrated remarkable resilience, maintaining a robust growth trajectory of 6.5% in FY 2024-25, significantly outpacing global averages. This performance reflects India's strong domestic demand, strategic infrastructure investments, and the government's commitment to economic reforms. Looking ahead, we anticipate continued momentum with projected growth of 6.8% in FY 2025-26, positioning India as the world's fastest-growing major economy.

In this dynamic environment, Linde India has demonstrated the strength of our diversified business model and our ability to adapt to changing market conditions. While we faced certain headwinds, particularly in our Project Engineering division, our core Gases business showed remarkable resilience, and we delivered strong profitability growth.

Our total revenue from operations stood at Rs. 24,854 million during FY 2024-25, compared to Rs. 27,687 million in the previous year. This 10.2% year-on-year decline was primarily attributable to the completion of several large project deliveries in our Project Engineering division and a more selective approach to new project acquisitions in line with our strategic focus on high-margin, long-term contracts. However, this revenue adjustment masks the underlying strength of our business fundamentals. Our Gases Division, which represents the core of our operations, achieved commendable growth of 2% year-on-year, expanding from Rs. 20,006 million to Rs. 20,408 million. This growth was driven by robust demand from key sectors including steel, healthcare, and electronics, coupled with our disciplined pricing strategy and operational excellence initiatives.

Most significantly, we achieved substantial margin expansion across our operations. Our EBITDA improved by 6.9% year-on-year to Rs. 8,329 million, representing a margin expansion of 536 basis points to 33.5%. This improvement reflects our continued focus on operational efficiency, cost optimization, and strategic pricing actions. Our after tax grew by 5% to Rs. 4,478 million, demonstrating our ability to generate strong returns even in challenging market conditions.

Our operational performance in FY 2024-25 was underpinned by several strategic initiatives that position us well for future growth. We continued to strengthen our market position through strategic investments in capacity expansion and technology advancement.

A key highlight was our expanded partnership with Tata Steel Limited in Odisha, where we signed agreements to de-captivate two additional air separation units (ASUs), more than doubling our on-site capacity at the Kalinganagar Industrial Complex. We also announced our entry into the Dahej industrial cluster in Gujarat through a long-term contract with Asian Paints (Polymers) Private Limited. This initiative involves the installation of our third Air Separation Unit at Dahej, further strengthening our presence in one of India's most important industrial regions.

At Linde India, we recognize our responsibility to contribute to India's energy transition and carbon neutrality goals. Our commitment to sustainability is not merely a corporate responsibility but a strategic imperative that drives innovation and creates long-term value for all stakeholders.

During FY 2024-25, we significantly expanded our renewable energy sourcing capabilities, currently accessing 98 million units per annum through long-term contracts under various captive schemes. We initiated sourcing of 19 MU per annum of solar renewable energy through the Inter-State Transmission System (ISTS) at our Dahej and Rourkela ASU sites, and completed setup for ISTS renewable energy at our SriCity and Selaqui facilities.

Looking ahead, I am optimistic about the opportunities that lie before us. The Indian industrial gases market is expected to grow at a compound annual growth rate of 7.1%, significantly above global averages, supported by expanding manufacturing capacity, increasing demand for specialty gases, and the adoption of clean technologies. This growth trajectory aligns perfectly with our strategic capabilities and market positioning. Our strong presence in key industrial clusters, combined with our technical expertise and customer relationships, positions us well to capture this growth.

I sincerely thank our shareholders for their trust and support, which empower us to pursue our strategic goals. I also appreciate our customers, whose partnership drives our growth, and our dedicated employees, whose commitment to safety and excellence underpins our success.

Finally, I acknowledge the invaluable support of our parent company, Linde PLC., for their expertise and guidance on our journey forward.

Chairman