Welspun Specialty Solutions Ltd

Teamwork and collaboration are central to achieving long-term success and sustainability.

Dear Shareholders,

It is with great pleasure and a profound sense of gratitude that I present the Welspun Specialty Solutions Limited (WSSL) Annual Report FY 2024-25.

The Company continues its endeavor to strengthen its position as one of the key players in niche stainless steel and nickel alloys product segments. Strong relations with our customers and our consistency in developing and delivering quality products has garnered constant support for our business and in securing critical orders. We have faced and yet overcome several challenges in our journey, however, our strategic focus on progress and a deep-seated dedication to our long-term goals has kept us poised for a promising future. Before we delve into the year's achievements and share our vision for the path ahead, it is important to acknowledge our shareholders—your support has been the cornerstone of our journey, consistently encouraging us to push our limits.

India's robust domestic demand and supportive government policies, such as Make in India are fostering a favorable environment for domestic manufacturers. Significant investments in sectors such as Energy, Defence, Aerospace, Power Generation, Oil and Gas, Petrochemicals, Space and Public Infrastructure are fuelling growth opportunities. We are strategically positioned to capitalize on this momentum, particularly in high-value segments. Our integrated manufacturing unit, combined with our expertise in high grade as well as customized grades of stainless steel, aids in manufacturing state-of-the-art products and meet the demand for specialized products, both domestically and globally.

In FY25, WSSL achieved a total income of INR 749.1 crore, marking a 4% increase from INR 718.2 crore in FY24. Our EBITDA and Cash profit were recorded at Rs 56.2 Crore and Rs 12.1 Crore respectively. Our inherent resilience and unwavering focus on financial discipline was crucial, enabling us to skillfully navigate headwinds and establish a fruitful journey in the years ahead.

Our sales volumes remained steady, with stainless steel bars at 18,860 MT and stainless steel pipes at 4,807 MT.

We centered our strategy on pursuing value added businesses over volume- driven growth. With a view to strengthen our balance sheet and being future ready, we raised INR 350 core through rights issue. We strategically deployed these funds for debt repayment, debottlenecking, capability upgrades, working capital augmentation, and other purposes as deemed appropriate by the Board.Consequently, we became a debt free Company.

I am happy to share that we achieved a landmark moment by securing a 4,050 MT order from BHEL for super-critical category boiler tubes; this represents the single highest-value order in our history. This milestone reinforces our leadership in the power generation sector and showcases our ability to deliver complex, high-quality solutions from our integrated facility in Jhagadia, Gujarat.

We have always believed that significant accomplishments are achieved not in haste but in patience and perseverance. Further, it is our uncompromised commitment to quality that grants us a competitive edge. Our milestones uphold this commitment, providing our focus on delivering value-added products and solutions that precisely

align with market needs and meet stakeholder expectations.

At WSSL, innovation holds the key to infinite possibilities. We leverage our innovative spirit to develop new products and confidently tap into high- growth sectors. In FY25, we received the recommendation for AS 9100D certification for aerospace applications. Additionally, we successfully delivered orders for new and advanced grades such as Welsonic-60 (UNS S21800) and Super-13Cr for oil well applications, further strengthening our product portfolio.

The company's foray into new markets, including initial orders from South Africa, marks a step forward in expanding our global footprint. Supported by our ISO/ IEC 17025 accredited testing facilities, we continue to deliver innovative, high- quality solutions that consistently meets industry standards.

Teamwork and collaboration are central to achieving long-term success and sustainability. This belief underpins our core strategy and upholds our unwavering promise to the planet, society and all our stakeholders.

In FY 25, we reduced our emission intensity per MT of bloom production by 12%, moving from 1.20 tCO2e/

MT in FY24 to 1.06 tCO2e/MT. This significant improvement was driven by an increased reliance on renewable electricity, which now constitutes 31% of our energy mix, up from 28% in FY24. This is expected to reach upto 70% with new renewable energy initiatives in near future. We remain vigilant to reduce

emissions considerably and commit to sustainable growth.

We are stringent in creating good governance within the Company, anchored by a Board with 50% independent directors and professional management. Our robust framework is supported by key policies, including a Code of Conduct for insider trading, a Whistle Blower Policy, and a Nomination and Remuneration Policy, all reinforcing our commitment to integrity. Equally, we champion our people, cultivating an inclusive environment where growth and empowerment thrive. Through our Board Diversity Policy and Familiarization Policy, we continue to invest in our team's development, building a culture of trust and shared success.

As we look beyond, we remain optimistic about India's growth trajectory and rising global demand for sustainable, high-quality specialty steel products.

Our focus is clear-- to diversify our product portfolio, expand our presence in high-value sectors and enhance operational efficiencies.

The year gone by may reflect a transitional phase in our financial performance, but the potential for significant growth and profitability remains clear. We are eager for the journey that lies ahead of us. By keeping innovation and sustainability as our growth compass, we aim to ensure progress, performance and profitability. Lastly, I wish to extend my heartfelt gratitude to our employees, customers, business partners and our valued shareholders.