To the Members,

Your Directors take pleasure in presenting this Integrated Annual Report and the Audited Financial Statements for the financial year ended 31 March 2026 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

Financial Results and Performance Highlights

Financial results and performance highlights of the Company are summarised below:

Distribution of Value of Production for 2025-26 is given below:

(' in Lakhs)

The Company's turnover for FY 2025-26 increased to ' 26,67,958 Lakhs from ' 23,02,410 Lakhs in FY 2024-25, registering a growth of 15.87%. The Profit After Tax (PAT) for FY is ' 6,04,848 Lakhs as compared to ' 5,28,825 Lakhs in the previous year. Turnover from indigenously developed products was 84%. Contribution for Defence supplies was at 93% of the turnover in FY 2025-26 as compared to 94% in the previous year.

Dividend

Pursuant to Regulation 43A of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company formulated a Dividend Distribution Policy keeping in view the provisions of the SEBI (LODR) Regulations, 2015, the Companies Act, 2013, Guidelines issued by the SEBI, DPE, DIPAM, Ministry of Finance and other Guidelines to the extent applicable to the Company. The Policy is placed on the Company's website at https://bel-india.in/wp-content/uploads/2023/01/Board- approved-Dividend-Distribution-Policy.pdf

Our consistent performance and long-term value creation have been reflected in the quantum of Profits/Reserves distributed to Shareholders by the Company. The Board of Directors has recommended a final dividend of ' 0.55/- per equity share (55%), amounting to ' 40,204 Lakhs for FY 202526. The interim dividend of ' 1.95 per equity share (195%) has been paid to the shareholders for FY 2025-26. Thus, the total dividend for the year 2025-26 is ' 2.5 per equity share (250%), amounting to ' 1,82,744 Lakhs.

Transfer to Reserves

An amount of ' 40,000 Lakhs has been transferred to General Reserves for FY 2025-26.

Share Capital

The Company's authorised capital was ' 75,000 Lakhs (7,50,00,00,000 equity shares of ' 1/- each) and paid-up share capital was ' 73,098 Lakhs (7,30,97,78,829 equity shares of ' 1/- each fully paid-up) as on 31 March 2026. There was no change in the authorised/paid-up share capital of the Company during FY 2025-26.

Major Orders Executed

Electronic Warfare & Avionics Systems, Radar & Fire Control Systems, Communication Systems, Weapon Systems, C4I Systems, Anti-Submarine Warfare Systems, Tank & Gun Upgrade Systems, Electro-optic Systems, Precision Guided

Muntions/Parts & Sub Systems , Network & Cyber Security, Home Land Security Systems etc.

Exports

Your Company has been exporting various products, systems and services to a number of foreign countries. Your Company has been placing enhanced thrust on addressing the export opportunities in defence, and non-defence areas, and this has resulted in achieving an all-time high export sales of USD 141.9 Million in FY 2025-26 compared to USD 106.17 Million in FY 2024-25.

Some of the countries to which your Company has exported its products and systems are France, Spain, the USA, Israel, Sweden, Mauritius, Armenia, Sri Lanka, Denmark, Colombia, and SEZs. The major products/systems exported include Radar Warning Receiver, Missile Approach Warning System, T R Modules, Medical Mechanical Parts, Communication Equipment, EO System, Sonar Spares, Coastal Radar Systems, Cyber Security Solutions, 3D Surveillance Radar, Satellite Communication Systems, Software, Shelters, Training & Maintenance Services, etc.

An increase in export sales was mainly due to the concerted efforts and new initiatives taken by your Company. Continuous interactions with prospective foreign OEMs & Customers, proactive offering of products, systems and services, development of customised solutions, offering products in new defence and civilian segments, interactions with MEA, MoD, undertaking and completing on-time delivery of customised projects have resulted in increased export sales. More efforts are directed towards providing new customised offerings and efficient support/services to the customers.

During FY 2025-26, your Company has acquired the highest ever annual export orders worth USD 346 from France, USA, Sweden, Sri Lanka, SEZ, etc. Your Company has an all-time high export order book of USD 496 Million as on 1 April 2026. Over the years, your Company has established long term relationship with current and prospective customers.

Along with Defence, your Company is also exploring opportunities for civilian/non-defence products and solutions in developed and developing countries in the areas of Cyber Security Solutions, Training & Maintenance Service, Software Applications, Vacuum Interrupters, Civil Aviation Radars, Electronics System Design & Manufacturing Services, etc.

Your Company is also focussing on various opportunities in the area of Offset Business from foreign OEMs. Your Company is also closely working and partnering with various major foreign Aerospace and Defence Companies by offering products and systems to meet their specific requirements.

Your Company has identified Electronics System Design & Manufacturing Services (Build to Print and Build to Spec) one of the emerging export opportunities.

Further, efforts are put in to establish long-term supply chain relationships with Indian and global OEMs. In this regard, your Company has offered various products and services to major Platform OEMs and their Tier-I suppliers. Your Company has also offered complete solutions globally with the partnership from India OEMs. This has helped your Company in leveraging partnerships for co-development, co- production, transfer of technology, and similar arrangements with various OEMs to undertake manufacturing of their products at your Company's facilities and utilisation of services of your Company not only for Indian programs but also for their global requirements.

Persistent efforts by your Company have resulted in acquiring new customers from targeted geographical locations such as Uganda, Nigeria, Europe, the USA, Japan and SEZ - India. During the year, new proposals for Avionics, EW Systems, Radar Sub-Assemblies,, Waveguides, ZnS Domes, Missile Systems, C4I Training Solutions, Anti-Drone System, Unmanned Systems, etc. were submitted to global customers and foreign ministries.

Actions by your Company to enhance exports are as follows:

a. Major initiatives undertaken

• Co-development/Co-production of products with foreign OEMs.

• Emphasis on Make in India "Sell Globally" approach.

• Efforts to achieve "Single Vendor" status by offering customised solutions & products.

• Collaboration with Indian and Global OEMs to offer complete platform solutions to foreign customers.

• Establishing long-term supply chain agreements with global OEMs.

• Focus on big programs (Radar Systems, C4I, Gun/ Missile Systems/ Tank & Gun Upgrades etc.).

• Leveraging the reach of Channel Partners.

• Partnership with foreign local industry for entering new global markets.

• New products offering in new geographical locations.

• Concentrating on non-defence exports segment.

b. Following products and systems have been offered to foreign countries/customers:

• Missile Systems

• Fuzes

• Unmanned Systems

• Anti-Drone Systems

• ZnS Domes

• Avionics

• Electronic System Design & Manufacturing

c. Interactions were held with the following major international customers (OEMs):

• Thales, France

• Safran, France

• SAAB, Sweden

• Combitech, Sweden

• Airbus Defence & Space, Spain

• SVT Group, Czech Republic

• General Atomics, USA

• Lockheed Martin, USA

• Boeing, USA

• Terma, Denmark

• Elbit Systems, Israel

d. Interactions were held with the following international customers (Defence Forces/ Ministries):

• Ministry of Defence, Uganda

• Ministry of Defence, Kyrgyzstan

• Ministry of Defence, Armenia

• Ministry of Defence, Nigeria

• Ministry of Defence, Columbia

e. Following were the major products exported during FY 2025-26:

• Radar Warning Receiver

• Missile Approach Warning System

• T R Modules

• Medical Mechanical Parts

• Communication Equipment

• EO System

• Sonar Spares

• Coastal Radar Systems

• Cyber Security Solutions

• 3D Surveillance Radar,

• Satellite Communication Systems,

• Software

• Shelters

• Training & Maintenance Services, etc.

MoU with the Government

Your Company has been signing a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India, based on guidelines issued by DPE. Performance of the Company for FY 2024-25 has been rated as "Excellent". The MoU rating for FY 2025-26 is under review by the Government.

BEL has complied with following parameters in respect of MoU Evaluation for FY 2025-26.

a) DPE Guidelines issued from time to time on CSR expenditure by CPSEs.

b) Compliance of Provision in the Companies Act, 2013 on Corporate Governance

c) On-boarding date of TReDS platforms:

BEL is registered on the following TReDS platforms:

• Procurement of goods and services through the Government e-Marketplace (GeM) amounted to '3,093.31 Crore, against the total annual procurement of '11,690 Crore.

• Details of MSEs procurement for FY 2025-26

Reason for not meeting the Procurement target from MSEs owned by SC/ST: Non-availability of SC/ST vendors with required technical capabilities and certifications.

• Details of Steps and initiative taken for Health & Safety improvement of Human resources for FY 2025-26:

a. The Medical Framework for standardizing the Operations of OHCs / Medical Centres across the

Company was formulated and implemented on 4 September 2025..

b. Annual Medical Checkup for DGMs and above as a part of Performance Management System was introduced w.e.f. June 2025.

c. The Safety & Security Meet was organized on 26 April 2025 to address emerging challenges in Security & Counter Intelligence, Cyber Security threats, Fire Safety preparedness, etc.

• Status of PM Internship scheme of MCA for FY 2025-26

a) BEL has published 400 Nos. of Internship opportunities during FY 2025-26.

b) BEL has issued offer letters to 369 Nos. of eligible candidates

c) BEL has published internship opportunities as per guidelines

Order Book Position

The order book of the Company as on 1 April 2026 is around ' 73,882 Crore including an export order book of USD 495 million. Some of the major orders of the outstanding order book includes Air Defence Radars, Avionics for LCA, Mountain Radars, Electronic Fuzes, Air Defence Weapon System, Air Defence Fire Control Radar, Electronic Suite for BMP II Upgrade, Medium Power Radar, EW suite for Helicopters, EOIR Payloads for Airborne and Naval platforms, EW systems for Naval Platforms, Radio Solution, Counter Unmanned Aerial System, Airport Surveillance Radars, Software Solutions, Automatic Train Supervision System, T/R Modules (exports) etc.

Finance

We are happy to inform you that your Company has continued to maintain its growth momentum during FY 2025-26. Your Company's topline has grown by 15.88% to ' 26,680 Crore as compared to previous FY 2024-25. Our technological capability coupled with "Aatmanirbhar Bharat" initiatives of Govt. of India and growing opportunities in exports has helped the Company to achieve significant milestones during the current year. BEL's PBT has grown from ' 7,090 Crore to ' 8,075 Crore, an increase of around 14%. Similarly, PAT has grown by more than 14% to ' 6,048 Crore. Our Earnings per Share (EPS) for the year 2025-26 has increased to ' 8.27 from ' 7.23.

Your Company continues to invest in R&D and Capex, which helps the Company to maintain its competitive advantage over its domestic and international competitors. We have invested ' 2,048 Crore during the current year in several R&D projects, which works out to 7.68% of turnover. Similarly, in line with our growth strategy, we have invested ' 890 Crore during the current year in Capex.

Our working capital continues to remain healthy. We are able to meet the Capex and Working Capital requirements entirely through Internal Accruals. We continue to remain Debt-Free. Company's Net worth in FY 2025-26 has increased to ' 23,698 Crore and the corresponding Book Value per share has increased from ' 26.95 to ' 32.42. Our performance across all financial metrics be it Turnover, Profitability, Investment in Capex and R&D, has continued to show an improving trend during the current year.

Deposits

The Company does not have any Public Deposit Scheme at present. However, the matured Public Deposit amount (collected prior to February 2006) with the Company was ' 36.95 Lakhs as on 31 March 2026. Out of this, 34 deposits amounting to ' 36.50 Lakhs have not been claimed or have not been paid as these accounts were frozen on the advice of the Karnataka Lokayukta. The remaining matured deposits of ' 0.45 Lakhs as on 31 March 2026 are unpaid due to insufficient documents/records produced by the Depositors.

Research & Development

BEL's Research and Development (R&D) Philosophy is to enhance its pre-eminence in products/services for Defence and Professional Electronics through Research & Development. BEL's R&D strives for the development of new products built with cutting-edge technology modules. While fully meeting the customer requirements, the products developed by the Company are state-of-the-art, competitive and incorporate the highest levels of quality, has been one of BEL's core strengths which is being enhanced through inhouse and collaborative R&D modes. Various divisions of BEL are involved in the development of Strategic Components, Technology Modules, Subsystems, Products, Systems and Systems of Systems.

BEL has a Three-Tier R&D structure, namely Central Research Laboratories (CRLs); Product Development and Innovation Centre (PDIC) & Centres of Excellence (CoEs); and Development and Engineering (D&E) groups attached to Strategic Business Units (SBUs)/Units. All the R&D/D&E Centres of BEL, as recognised by the Department of Scientific

& Industrial Research (DSIR), function at multiple locations across India. D&Es are located at each of the SBUs and Units, namely Bengaluru, Chennai, Ghaziabad, Hyderabad, Kotdwara, Machilipatnam, Navi Mumbai, Panchkula and Pune. PDIC and CoEs are located in Bengaluru, while CRLs are located in Bengaluru and Ghaziabad. The D&Es/PDIC/ CoEs/CRLs work in the identified technology and product areas, based on three-year R&D plans and after due approval of budget/time by the competent authority.

The D&E groups at SBUs / Units provide Systems and Systems of Systems solutions to the end users. Towards this, they get necessary technology modules and subsystems developed through CRLs, PDIC, CoEs and collaborative R&D partners. They conduct all evaluations and trials needed in the process of inducting these systems into service. They also extend technical support during the entire product life-cycle, and upgrades and also take care of obsolescence management.

Apart from in-house efforts, BEL R&D Engineers collaborate with DRDO, ISRO, CSIR, other Research Laboratories, National and International Academia, Research Institutes, OEMs/Industries, Experts/Consultants, MSMEs and Start-ups in niche technology areas. BEL has created an ecosystem to co-create products/solutions in many business segments.

D&E Projects Initiated During FY 2025-26: Several R&D projects have been initiated during FY 2025-26, both through in-house development and collaborative efforts (mainly with DRDO). Major projects initiated during FY 2025-26 are Wheeled Armoured Fighting Vehicle, Control Centres and Comm Systems for Kusha Weapon System, Advanced Buoyant Cable Antenna System for Submarine, Naval Antidrone System (Ship-Based), LINK Media Agnostic Intelligent Terminal for Resilient Information Exchange, Subsystem/Proto AAAU for Su-30, Active Off board Decoy, Customisation & Sys Integration of DIRCM for ALH, Bharat Shakti SoC, Ground Based Autonomous System, Kusha Control Centres and Comm System and Night Flying LRUs for LCA MK-II.

D&E Projects Realised During FY 2025-26: Some of the major projects realised/completed during FY 2025-26 are Missile Checkout Facility for QRSAM, Indigenous Commander's Panoramic Sight, Development of QRSAM, LYNX U2 for NOPV (Talwar Teg Class), Integrated ASW Defence Suite (IADS), Development of TEST BED for F-INSAS, Development of Low Profile Ku Band SOTM, X-Band GaN-based Radar, UET model for SHAKTI and QT model for Sarang.

Important R&D Awards/Recognitions Received During FY 2025-26:

• IETE Awards - 2025.

• IETE - Dr Sudhakar Rao Award - ANT/GAD-OU.

• IETE - Smt C Ranganayakamma Memorial Award - CRL/ BG.

• Best Paper Award at IEEE Symposium, SMAP-2026 at Indonesia - MMIC/PDIC.

• Best Paper Award at IEEE SPACE (SPace Aerospace and defenCE Conference) 2025 - CRL/BG.

• Manufacturing Today Conference and Awards 2025: Five Awards under Excellence in Innovation, Engineering Design and Technology Categories - RFMW/PDIC.

• 5^th PSU Transformation Conclave - 2025: Digital Dynamo Awards for Smart-Ship Operation - SW/BG.

• 10^th PSU Awards - 2025: Cyber Security and Data Protection under the category of "Best Use of Emerging Technology (Block chain)" - SW/BG.

New Products Developed Through In-house Development Efforts During FY 2025-26 are:

Design and Development of X-APAR, Development of AESS LR & MR, Prototype ATM & ASMGCS System, Development of FDWS for Naval Platforms, Development of SIDE SCAN SONAR, Design & Development of Indigenous SPAD, Railway 5G Solution for RDSO, Development of Network Accelerator, Development of VHF TRM for VHF Radar and Design of X-OTRM for CoLoR.

New Products Developed through Collaborative Development Efforts During FY 2025-26 are:

Mobile C4I Prototype, AESA Antenna Arudhra, Semi Active Phased Array CAR-P, Shaped Reflector Antenna, LYNX U2 GFCS - NGOPV, Missile Checkout Facility, Akash Prime Simulator, AD GUN Training Simulator, EO Sights BMP Upgrade Program and EO Sight for Himashakti.

Future Plan of Action: BEL will enable scaling of R&D for innovative Products / Services across the organisation to align with the objective of growth and transformation. All the tiers of R&D (D&Es, PDIC, CoEs and CRLs) will continue to collaborate in identifying new areas of development and complementing each other in addressing the requirements through in-house and collaborative modes of development. BEL plans to continue investing in R&D for meeting the continuously evolving requirements of its customers as well as for diversification. While a major thrust would be given for inhouse development, collaboration with national laboratories, academic institutions, research institutes, industry and MSMEs will also continue to be strengthened.

Focussed technology/product development efforts have been initiated in diversified areas like Photonics-based Electronic Warfare, Server-based Radar Signal Processing and Cognitive Radios.

BEL has consistently been investing more than 6% of its annual revenue every year in R&D and will continue to support R&D initiatives for enabling an Atmanirbhar Bharat, making & delivering high-quality Defence & professional electronics products, systems & solutions for India and the world.

New Facilities Established

Infrastructure enhancement is one of the major objectives of the Company in order to stay upgraded for global opportunities and to be the best in business. During FY 2025-26, the Company has spent around ' 892 Crore as part of CAPEX investment towards modernisation of Plant & Machinery, Test instruments, R&D investments, Infrastructure up-gradation, etc. Following are some of the major facilities established during FY 2025-26:

• Advanced Night Vision Products Factory at Nimmaluru, Krishna district, Andhra Pradesh.

• Electronic Warfare Land Systems facility - Ibrahimpatnam, Telangana.

• Missile Integration Facility - Bengaluru.

• Process facility - Vellore.

• Modernisation of Electronic Warfare (EW&A) facility

- Bengaluru.

• System Integration facility- Chennai.

• Advance Manufacturing Facility - Kotdwar.

• Centre of Excellence (CoE) for Artificial Intelligence (AI)

- Pune.

• Defence PSU Bhawan, a state-of-the-art central facility within the World Trade Centre in New Delhi, for all the DPSUs under the Department of Defence Production.

Information Technology (IT) Initiatives:

Migration of SAP - SRM applications to New Hardware and HANA Database is completed. In the SAP system, IS/CO has implemented Digitisation of DAS Approval using Biometric Authentication, Documents uploading process in SRM by Vendors, LTA Process, Emergency Procurement Process, Digitisation of Monthly Project Review meetings, Bond Management Process for Employees, Digitization of MCM Decisions, Internal Audit Management System, Integration of BEL ERP with Army portal, GEM portal integration for payment update.

Securing information networks and database: Separate physical networks are maintained for Internal Intranet network and Public Internet networks. Air Gap is maintained between Internet and Intranet networks to completely isolate the internal network. Critical applications and Data are available

only on the Intranet. For Internet access which is mainly used for email and browsing, centralised gateway is established in the Cyber Defense Center (CDC).

CDC is built on the principles of zero trust and layered security approach (defence-in-depth) and continuously getting augmented with latest tools & technologies for maintaining the cyber resiliency. Security Operations Center (SOC) is established as a centralised Unit that unifies people, processes and technology to monitor, detect and respond to cyber-security threats in real time. VPN with Multi Factor Authentication is implemented for secure email access, Centralised Network Management System (NMS) is implemented for proactive monitoring of performance and health of the network and IT infrastructure.

To further strengthen the cybersecurity preparedness, BEL Security Operation Centre (SOC) is integrated with MoD CSOC. As part of the integration, two log collector appliances are installed in BEL and logs of security appliances such as perimeter Firewall, Web Proxy, Email Gateway, DNS servers, etc. are forwarded to these installed log collectors. This setup has facilitated real-time integration with MOD Threat Intelligence Platform for automated blocking of Indicators of Compromises (IOCs) at perimeter Firewall. As part of the project, CHAKRAVYUH Server is also installed for monitoring & managing internet facing endpoints installed with MAYA OS.

Company-wide ERP (SAP) is implemented for all Business processes. ERP Data resides in SAP's HANA Database, which is deployed on the Intranet, with Secure configuration and hardening. Access control to the Database is possible only through the SAP application. Support patches released by SAP are regularly applied. Granular access control of User Roles and authorisations is enabled based on the principles of least privilege, need-to-know basis and segregation of duties. Audit trail log is enabled for all users. Entire infrastructure is subject to Annual VAPT from the CERT-in empanelled agency. Daily automated backup is enabled. A three way Disaster Recovery (DR) system is deployed with Primary, Secondary site (Near DR) in BEL Bangalore and Far DR site at BEL Hyderabad. Synchronous replication is enabled between Primary and Near DR sites with auto-failover capabilities ensuring Business Continuity.

BEL has adopted Virtual Desktop Infrastructure (VDI) to avoid storing of Data on PCs and enhancing Information Security. PCs with Windows OS are inherently vulnerable to malware, viruses, worms, data leakage and other Security vulnerabilities. These issues have been overcome by the implementation of centralised VDI and replacing or converting End Point PCs to Thin Clients. The Data Centre facilities of Units have been upgraded for hosting VDI. Separate VDI has been

commissioned for intranet and Internet. VDI Intranet Data are now stored in Data Centres in encrypted form. Centralised security policies and Security patching are enforced for the entire infrastructure.

SAP infrastructure, CDC and VDI infrastructure including all hardware, software applications and Database are certified for ISO 27001:2022 Information Security, Cyber Security and Privacy Protection.

Quality

Quality, Technology, and Innovation are three guiding pillars of BEL's Business initiatives. Quality, being the first pillar, has been one of the focus areas for the Company. The Company is committed to continual improvement through a process approach in line with World-Class Quality Systems. All Units/Strategic Business Units (SBUs)/Common Services Groups (CSGs) are accredited to AS 9100D/ISO 9001 Quality Management Systems (QMS). All Units/SBUs of the Company are committed to the Environment Management System through ISO 14001 Standard and Occupational Health Safety Management System through ISO 45001 Standard. 14 Units / SBUs / Divisions of the Company are certified for the Information Security Management System (ISMS) ISO 27001. Test Equipment, Calibration and Maintenance Divisions of Bangalore Complex, Ghaziabad Complex, Panchkula unit, Chennai unit, Navi Mumbai unit and Hyderabad unit (total 13 labs) are certified by NABL in accordance with ISO/IEC 17025 Standard. CRL Ghaziabad, Software SBU and Hyderabad unit are certified for CMMi level 5. NCS, DCCS and Radar SBUs of Ghaziabad Complex, Chennai Unit are certified for CMMi Level 3. Software SBU is certified for ITSMS ISO 20000-1 and BCMS ISO 22301. BAE and BEEI are certified for EOMS ISO 21001.

World-class quality standards were upheld with the successful completion of the AS9100D Surveillance Audit, reaffirming the Complex's commitment to excellence. Many of our items are cleared through Green Channel Certifications and it reduced delivery time and meeting the on-time delivery of the systems.

BEL received additional Green Channel Status (GCS) for 4 Products from Pune Unit during FY 2025-26. Existing GCS certificates for MR, NS1, NS2, Milcom SBUs of Bengaluru Complex and Navi Mumbai unit are renewed for next 5 years, reinforcing the Customer confidence in our Products & Process Quality. Demonstrating its continued focus on energy excellence, the Company has achieved certification under ISO 50001:2018 (Energy Management Systems) across all its manufacturing units, highlighting its commitment towards achieving the highest standards of energy efficiency and optimal resource utilisation across its value chain. Teams

from the Company presented Technical Papers on Quality & Leadership at 'International Conference on Quality 2025', organised by Union of Japanese Scientists and Engineers (JUSE) held at Tokyo, Japan.

Comprehensive digital transformation initiatives were implemented across operations, significantly enhancing efficiency, traceability and quality assurance. Key initiatives included SAP-based inspection data capture with integrated qualitative and quantitative parameters, QR code-enabled tracking of materials, digitised inspection processes and automated testing systems. Industry 4.0 practices were further strengthened through digital manufacturing initiatives, including the deployment of Digital OARC and enhanced process traceability in production environments.

End-to-end digitalisation was advanced through the implementation of Quality 4.0 practices, including digital GR processes, barcode-enabled material tracking, online customer inspections, remote inspection capabilities and adoption of emerging technologies such as hands-free inspection and VR-based training, collectively enhancing life cycle traceability, quality and customer engagement. In addition, sustainability and operational efficiency were supported through the introduction of the Energy Monitoring System for remote tracking of energy consumption.

The Company has facilitated the involvement of employees in the Quality Movement through the Quality Control Circle (QCC). During the year, 507 QCC presentations are made by various QCC Teams. Many QCC teams are nominated for national competitions, and all are adjudged for various categories of Awards. Two IUQCC winning teams from Bengaluru complex Alakananda QC Circle from Milcom SBU and Arrow QC Circle from Components SBU participated in Premium NCQCC 2025 held at Dubai and won Gold Medals.

Around 4,265 suggestions are awarded in FY 2025-26. A total savings of ' 88.24 Crore was achieved through this Suggestion Scheme implementation in various process improvements during this year.

During the year, 17 Executives from various Units/SBUs are certified as "Certified Quality Engineers (CQE)", 04 Executives are certified as "Certified Reliability Engineers (CRE)" from ASQ. 23 Executives got certified as "Project Management Professional (PMP)" from PMI USA. 16 mid-level and senior executives are certified as "Certified Data Analytics (CDA)" by Indian Statistical Institute (ISI), Bangalore.

Total 120 Six Sigma Projects have been completed during FY 2025-26, resulting in an estimated savings of ' 5,492.17 Lakhs to the Company. 15 BEL Six Sigma teams participated

in Regional level competitions CCQC-2025 organised by QCFI and all 15 teams won the highest award "GOLD". All 15 BEL Six Sigma teams participated in National level competitions NCQC-2025 organised by QCFI and all teams won the highest award "PAR Excellence".

MR SBU from Bangalore Complex won the First Prize, Panchkula Unit, and NCS SBU of Ghaziabad unit won second and third prizes respectively in company-wide Quality Recognition Award (QRA) 2025. Quality Champion is a new flagship award introduced in FY 2024-25 and conferred to three executives (for FY 2025-26) of the Company for their extraordinary involvement and dedication towards Quality improvement in the Organisation.

The company is aiming for the comprehensive Digital Transformation, implementation of Industry 4.0 technologies for Productivity enhancement, and to achieve higher growth rate in the coming year.

Human Resources

Your Company employed 9,420 people as on 31 March 2026 compared to 8,844 people as on 31 March 2025. Out of these employees, 5,793 were engineers/scientists, and 2,026 were women employees. A total of 1,071 employees were inducted during FY 2025-26. 195 employees belonging to the Scheduled Castes (SC), 79 employees belonging to the Scheduled Tribes (ST), 401 employees from the Other Backward Classes (OBC), 145 employees belonging to the Minority Community and 9 Physically Challenged employees were inducted during FY 2025-26.

Your Company has been complying with the Government directives on reservations. The particulars of SC/ST and other categories of employees as on 31 March 2026 are as under:

Various training programmes were conducted during the year to enhance competencies in Technical, Functional, Managerial and Leadership areas. Structured Executive Development Programmes were conducted regularly with premier institutes to meet the evolving training needs of executives as they progress through various grades. A detailed write-up on HR initiatives during the year is provided separately in the

Management Discussion and Analysis Report, which forms a part of this report.

Disclosure Under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company is an equal-opportunity employer and consciously strives to build a work culture that promotes the dignity of all employees. As required under the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder, the Company has implemented the policy on prevention, prohibition and redressal of sexual harassment at the workplace, which has been uploaded on the Company's intranet & internet portals. All women, permanent, temporary or contractual, including those of the service providers, are covered under the Policy.

An Internal Complaints Committee has been constituted in each of the nine constituent Units, including the corporate office, to redress complaints relating to sexual harassment. The list of ICC members is also available in Company's intranet and internet portals. Awareness programmes were conducted across the Company to sensitise employees and uphold the dignity of their colleagues at the workplace, particularly with respect to the prevention of sexual harassment. The details of the complaints filed, disposed of and pending during the year pertaining to sexual harassment are provided in the Business Responsibility and Sustainability Report, which forms a part of this report.

Awards and Accolades

Your Company strives to achieve the highest level of quality in all its products by considering consumer insights and by reaching out to consumers. During the year, your Company has received the following various Awards and Accolades:

• BEL Kotdwar won the "Platinum Award" in CII-EXIM Bank Excellence Awards.

• BEL Ghaziabad won Best OSH (Occupational Safety & Health) Performance 2024 in the "Exemplary Category" by VZ-RSI.

• 'PSU Samarpan Award' by GovConnect.

• BEL Bengaluru won the Golden Peacock Quality Award-2025.

• PSE Excellence Award for Cyber Security under the category of "Enterprise Security".

• Governance Now 10^th PSU IT Award for "Cyber Security and Data Protection".

• Financial Express CFO Award.

• Kalinga Excellence National Award 2024.

• Greentech Award for "Excellence in Quality Management Systems".

• DSCI Award for "Best Cyber Security Practices.

• SKOCH ESG 'Gold Award 2025'.

• 'Vishisht Award (2024-25)' for BEL Panchkula.

Subsidiaries, Joint Ventures and Associates

BEL Optronic Devices Limited (BELOP) is a wholly-owned subsidiary of BEL, which manufactures Image Intensifier. BELOP achieved a turnover of ' 10,989 Lakhs for the year compared to ' 18,325 Lakhs in the previous year. The Profit After Tax (PAT) for the year was ' 582 Lakhs compared to ' 2,068 Lakhs in the previous year.

BEL-THALES Systems Limited (BTSL) is a subsidiary of BEL. Your Company holds 74% of the equity capital in BTSL. During the year, BTSL recorded a turnover of ' 14,648 Lakhs compared to ' 11,747 Lakhs in the previous year. The Profit After Tax (PAT) for the year was ' 98 Lakhs compared to ' 476 Lakhs in the previous year.

GE BE Private Limited is an Associate Company of BEL. Your Company holds 26% of the equity capital in GE BE Pvt. Ltd. GE BE Pvt. Ltd. recorded a turnover of ' 1,92,161 Lakhs for the year, compared to ' 1,80,621 Lakhs in the previous year. The Profit After Tax (PAT) was ' 15,385 Lakhs for the year compared to ' 13,576 Lakhs in the previous year.

BEL IAI Aerosystems Private Limited is an Associate Company of BEL. Your Company holds 40% of the equity capital in BEL IAI Aerosystems Pvt. Ltd.

The Defence Innovation Organisation (DIO) is a 'Not for Profit' Company as per the provisions of Section 8 of the Companies Act, 2013, with paid-up share capital of ' 1 Lakh. With an equity participation of 50% from BEL, the Company was formed with the objective of funding innovation in the Defence sector.

Electronic Warfare (Defence) Testing Foundation is a 'Not for Profit' Company as per the provisions of Section 8 of the Companies Act, 2013, with paid-up share capital of ' 1,174 Lakh. With an equity participation of 40% from BEL, the Company was formed with the objective of funding innovation in the Defence sector.

Communication (Defence) Testing Foundation is a 'Not for Profit' Company as per the provisions of Section 8 of the Companies Act, 2013 with an authorised share capital of ' 1,045.25 Lakh. With an equity participation of 40% from

BEL, the Company was formed with the objective of funding innovation in the Defence sector.

UAS Testing Foundation is a 'Not for Profit' Company as per the provisions of Section 8 of the Companies Act, 2013 with an authorised share capital of ' 1,500 Lakh. With an equity participation of 20% from BEL, the Company was formed with the objective of funding innovation in the Defence sector.

Pursuant to the provisions of Section 129(3) of the Companies Act, read with Rule 5 of Companies (Accounts) Rules, 2014 (as amended), a separate statement containing the salient features of the financial statement of Subsidiaries/ Associate/ Joint Ventures in Form AOC-1 is appended to the Financial Statements.

Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of the Company www.bel-india.in.

Consolidated Financial Statements

Consolidated Financial Statements of your Company and its Subsidiaries for the year ended 31 March 2026 have been prepared in accordance with the provisions of Section 129(3) of the Companies Act & applicable Indian Accounting Standards and forms part of this report.

Vigilance

The Company's Vigilance Functions is headed by Chief Vigilance Officer (CVO) Ms. Kalyani Sethuraman, IRAS.

BEL Corporate Vigilance setup comprises of Investigation & Anti-Corruption Wing, Technical Wing and Preventive Vigilance & Disciplinary Action Wings. To support the vigilance functions across various SBUs, BEL has 19 full-time Vigilance Officers posted in Units/SBUs/CO who are handling vigilance activities in the Units/SBUs/Corporate Office. Vigilance Committees are formed in Units/SBUs/ Corporate Office to look after the Vigilance functions and administration. The Units/SBUs head is designated as Chairman of the Vigilance Committee. Preventive Vigilance has been the thrust area of the Vigilance Organisation. The Vigilance Department examines procurement processes on continual basis, conducts regular and surprise inspections and investigates instances of any suspected transactions/corruption. BEL has a complaint handling policy through which an employee or third parties can bring any suspected transaction to the notice of vigilance department. Online Complaint Management System has also been made operational and complaints can be filed by accessing the Vigilance Portal in BEL website www.bel-india.in.

During the year, 3,669 Purchase Orders/Contracts (> ' 25 Lakhs) have been reviewed by Field Vigilance Officers. Five Intensive Examination (IE) teams have been formed for conducting CTE Type Intensive Examination. 60 High value Procurement Contracts have been taken up by the IE Teams during the year 2025-26. Regular and Surprise Checks, Inspections have also been conducted by the field Vigilance Officers. 51 Complaints were received and 50 were disposed. Disciplinary action and System/process improvement has been recommended in some cases where lapses were observed. 159 Executives (including TC Personnel) & 39 NonExecutives working in sensitive areas were moved out after completing of 3 years period.

In line with the CVC's guidelines on Leveraging Technology and to ensure transparency through effective use of technology, the following functions have been made operational through SAP and the Company's website:

• E-Procurement.

• Online registration of Vendors.

• Vendor Payment Information System and Process Automation for reducing time for Vendor payment.

• E-Payment/Bank transfer of payment to Vendors.

• Details of awarded Contracts/Purchase Orders valuing more than ' 10 Lakhs in respect of works contracts, service contracts, capital items and non-production items have been posted in the website.

• Details of awarded Contracts/Purchase Orders issued on nomination/single tender basis value exceeding ' 5 Lakhs are posted on the website.

• Corruption Risk Management Policy is framed and implemented across the Company.

• Vendors' Directory is maintained by SBUs.

• File Life Cycle Management System (FLM) is fully implemented across the company.

• Online filing of APRs is facilitated in SAP for all the Executives.

• Vigilance clearance for various purposes was issued to Executives/Non-Executives in SAP.

Vigilance setup in BEL has been continuously endeavouring to bring transparency, fairness and integrity in all transactions and processes of the company by creating a sense of awareness on System and Procedures through awareness campaign and training programme.

Key activities carried out during the year 2025-26: A) Observation of Vigilance Awareness Week 2025:

Inauguration and Integrity Pledge taken:

BEL has observed Vigilance Awareness Week from 27 October to 2 November 2025 with the theme "Vigilance: Our Shared Responsibility" at all Units/SBUs/Offices across the country. Integrity Pledge was administered by employees and students at schools/colleges in the events. E-Integrity Pledge was administered by employees in BEL Intranet portal and Vendors and Customers through e-mails.

BEL actively participated in undertaking a three months campaign from 18 August 2025 to 17 November 2025 on Preventive Vigilance focussing on Disposal of pending complaints, Disposal of pending cases, Capacity Building Programs, Asset Management and Digital Initiatives. 40 Courses were undergone by employees of BEL in IGOT Karmayogi Portal. 5,245 employees attended the courses. Activities related to Vigilance theme like competitions, outreach programmes, gramsabha, guest lectures, seminars, workshops, training on Vigilance Awareness, Vigithon, Walkathon, Marathon, Street Plays, Storytelling sessions, Vendors meet and other programmes were conducted on the occasion.

Distribution of Pamphlets/Banners/Slogans/Standees on Vigilance:

Display of Banners, Boards near the Entrance Gate of all the 9 Units of BEL and in various Schools and Colleges wherever the Awareness Week programme was conducted. Pamphlets on Integrity Pledge were made and distributed among Employees, Executives and Contract Personnel. Banners were displayed during the week at prominent places like Lalbagh Botanical Garden, Kanteerava Stadium, BEL Circle, Doddabommasandra Arch, BEL Institutions, BEL Hospital, BEL Thales Systems Ltd., BEL Kalakshetra, Central Research Laboratory and PDIC in Bengaluru.

Outreach Activities:

1. Vigilance Awareness Programmes were held at Jawahar Navodaya Vidyalaya, Bangalore Rural District, Doddaballapur, Bashettihalli, BE Educational Institutions, Jalahalli, Bangalore, Govt. Polytechnic, K.R. Pete, Mandya District and National Law School of India University, Nagarbhavi, Bangalore. Around 800 students attended the programme. Essay writing, Slogan writing, Quiz and Poster competitions were conducted and prizes were distributed.

2. Vigilance Awareness programme at Gram Sabha was conducted at Govt. High School, Doddabelavangala Doddaballapura. Around 500 students participated.

3. 2 Street Plays were conducted at Lalbagh Botanical Garden, Bangalore and 2 Street Plays were conducted at BEL Circle and Doddabommasandra Market giving awareness to public on VAW 2025 and Corruption.

4. Walkathon was conducted for BEL Educational Institution students. Students participated with placards and banners on Vigilance Awareness.

5. BEL Staff led by CVO participated in "Vigithon" conducted by Vigilance Study Circle, Bangalore Chapter at Kanteerava Stadium, Bangalore. Various Bangalore based PSUs like BEL, HAL, BEML, KIOCL, ITI participated in large numbers.

6. Vendors Meet was organised in Bangalore Complex and Other Units of BEL. Feedback from vendors was taken to address their grievances through online/ offline modes.

B) Vigilance Training Programmes and other Programmes Organised in BEL:

• Capacity Building Programmes conducted are - i) Public Procurement and ii) Cyber Hygiene and Security was conducted for Dy. Managers and Managers from MM, Purchase and Finance dept.,

iii) CDA Rules was conducted at individual Units.

iv) Framing of Charge sheet was conducted for HR Officers, v) Investigation & Report was conducted for Vigilance Officers & Investigation Officers and vi) Conducting CTE type Intensive Examination was held for Intensive Examination Teams in all Units of BEL.

• Guest lecture on "PC Act 2018" and "Preventive Vigilance in day to day activities of the organisation" was delivered to employees of Bangalore Complex.

• Talk on POSH was conducted at Navi Mumbai unit where a large number of employees attended.

• Vigilance Awareness Programme at Induction level was conducted to newly recruited HR, Finance, Legal, CC Executives, Project Engineers, Trainee Engineers, Apprentices, Probationary Engineers and Scientists at Bangalore Complex, Hyderabad Unit, Ghaziabad Complex, CRL-Ghaziabad, Machilipatnam Unit, Kotdwara Unit, Pune Unit, Navi Mumbai Unit and Chennai Unit.

1,428 Executives and 388 Non-Executives were given basic awareness programme on Vigilance and 1,195 newly recruited executives were given training on Vigilance as a part of Induction Programme

ISO 9001 Quality Management System:

ISO 9001 Re-certification Audit was conducted by M/s GCQ Certifications India LLP, Kochi during 18 & 19 June 2025 and the vigilance department was certified for ISO 9001: 2005

Integrity Pact

One of the initiatives of the Central Vigilance Commission (CVC) to eradicate corruption in procurement activity is introduction of the Integrity Pact in large value contracts with Government Organisations. In line with the directives from Ministry of Defence and the Central Vigilance Commission, your Company has adopted Integrity Pact with all the vendors/ supplies/contractors/service providers for all Orders/Contracts of value ' 300 Lakhs and above. The Integrity Pact essentially envisages an agreement between the prospective vendors/ bidders and the principal (BEL), committing the persons/ officials of both sides, not to resort to any corrupt practices in any aspect/stage of the contract. Only those vendors/bidders, who commit themselves to such a Pact with the principal, would be considered competent to participate in the bidding process. An Integrity Pact, in respect of a particular contract, would be operative from the stage of invitation of bids till the final completion of the contract. Any violation of the same would entail disqualification of the bidders and exclusion from future business dealings, and monitoring the implementation of the Integrity Pact in the Company.

As recommended by the CVC, the Company has appointed Mr Sanjay Kumar Srivastava, IAS (Retd.), Mr Rajiva Ranjan Verma IPS (Retd.), Mr Ashwani Kumar, former CMD, Dena Bank, for monitoring the implementation of the Integrity Pact in the Company.

Total 11 IEM meetings were conducted with 2 Structured meeting with CMD. Contracts reviewed for the year 2025-26 are 705.

Procurement from Micro & Small Enterprises (MSEs)

Your Company has been providing increased thrust on enhancing procurement from Micro & Small Enterprises (MSE) and has been implementing Public Procurement Policy for MSEs as per the guidelines/notification issued by the Ministry of MSMEs. BEL has on boarded on the TReDS Platform, GeM, MSME Sambandh & MSME Samadhaan Portals complying with Government guidelines.

The Company has conducted and participated in Vendor Development Programmes for Indian vendors including

MSMEs/Start-ups on various occasions throughout the year. BEL extends special provisions as envisaged in the Ministry of MSME notifications, released from time to time, to MSME/ Start-ups in procurement.

BEL's procurement from MSEs is 44.57% of total Domestic procurement during FY 2025-26 against the mandatory target of 25% as per the Public Procurement Policy for MSEs.

Implementation of Official Language Policy

Your company is committed to adhere to the Official Language (OL) policy of the Government of India. During 2025-26, your Company has achieved all the targets prescribed in the Annual Program issued by Dept. of OL, Ministry of Home Affairs (MHA), GoI to transact official work in Hindi.

OL Inspections: Drafting and Evidence Committee of the Committee of Parliament on Official Language conducted OL inspection of Kolkata TOLIC and selected member offices, including the BEL's Regional Office on 20 September 2025 and First Sub-Committee of Committee of Parliament on Official Language conducted OL inspections of Hyderabad Unit on 17 January 2026. MoD officials conducted OL inspection of RO Delhi (06 February 2026), Panchkula Unit (27 February 2026) and RO Vizag (05 March 2026). Corporate OL Inspection team conducted 07 inspections of its subordinate Units/Offices.

Training and Reporting: Roster is maintained for Hindi language training and computer training, which is updated from time to time. As per the Roster, employees were nominated for online training. Quarterly/half yearly reports are sent to the OL Dept., MHA, GoI, MoD, Hindi Teaching Scheme and Town Official Language Implementation Committee (TOLIC) as per the schedule.

Computerisation and Website: Updated information pertaining to OL is being communicated through OL Portal GARIMA introduced by the OL Dept. of Corporate Office. Quarterly progress reports from Units/Offices are being received online in SAP. Hindi notings are being written in File Life-cycle Management (FLM). Provision has been made to open the Homepage of the Company's website in Hindi.

Bilingualisation: All Units and Offices of the Company including Corporate Office are issuing documents in bilingual as per the Section 3(3) of the Official Language Act, 1963. Usage of Hindi is being encouraged in correspondence and on computers. Individual orders under OL Rule 8 (4) were issued to officers/employees who are having proficiency in Hindi to do their complete work in Hindi. Also, a circular on creation of Check Points under Rule 12(1) of OL Rules was issued.

Participation: OL teams of BEL participated in the 5^th All India OL Conference, 02 conferences on the occasion of Golden Jubilee celebration of Dept. of OL, MHA and 02 Regional OL Conferences organised by the Dept. of OL, MHA. Honourable Minister for Coal and Mines Shri G Kishan Reddy released BEL Rajbhasha Coffee Table Book 'ATHAK' during the Dakshin Samvad program held on 11 July 2025 by Dept. of OL, MHA.

OL Programs: All India BEL OL Conference was organized in BEL Navi Mumbai Unit on 07 November 2025. A competition on Translation for the member offices of TOLIC (Undertakings) was organised in Bengaluru. OLIC meetings, Hindi Workshops and Technical Talks in Hindi were conducted by all Units/ Offices. Hindi Month and Hindi Day during September, World Hindi Day and World Mother Tongue Day was observed in all the Units and Offices of the Company.

Publications: Hindi Magazines were published by the Units / Corporate Office to propagate usage of Hindi in the company.

Incentives and Awards: Company has various lucrative Incentive Schemes for doing original work in Hindi. These schemes are named after renowned Hindi Litterateur which carry cash awards from ' 2,000 to ' 10,000. Employees have participated in the TOLIC competitions and won prizes. Corporate Office was awarded for excellence in OL implementation by TOLIC (Undertaking), Bengaluru. CMDs OL Shield for excellence in OL implementation was awarded to the subordinate units situated in A, B and C regions respectively. OL Officer and Translator of Corporate Office were awarded in the All India Shabd Sindhu and Machine Translation Tool KANTHASTH 2.0 organised by the Dept. of OL, MHA.

New Initiatives: In order to propagate Hindi among employees, a Linguistic Harmony Program was organised in which popular television serials were screened. BEL Rajbhasha Coffee Table book 'ATHAK' was published, highlighting OL implementation, new initiatives and achievements of BEL. A dedicated section for OL has been introduced on the Company's website. Defence Electronics Glossary of BEL is prepared in coordination with the Commission for Scientific and Technical Terminology (CSTT), Ministry of Education. A special Technical Seminar was organised in which 12 teams of scientists took part and gave presentations in Hindi. As part of Krishna Sobti Hindi Lecture Series, lectures were organised on general interest and technical topics.

Continuous efforts are being made to ensure OL Implementation and for increasing progressive usage of Hindi across the Company.

Implementation of the Right to Information Act, 2005

In consonance with the provisions of the Right to Information Act, 2005 (the Act), your company has well-defined mechanism in place to address the provisions of the Act. Your Company designated a General Manager level officer as a "Nodal Officer" to oversee the implementation. The requests received are processed by 17 senior personnel designated as "Central Public Information Officers (CPIOs)" including one at Corporate Office and each at the Units/ROs. Your Company designated a General Manager level officer as a "First Appellate Authority" to dispose of first appeals filed under the Act. In compliance with Government directives, your company is successfully processing the applications under the Act, via online portal. The information to be provided as per Section 4(1) (b) of the Right to Information Act, 2005 has been published on the website of company (www.bel-india.in)

The FAA, CPIOs and other internal stakeholders involved are sensitised about their obligations under the Act through training and workshops.

Your Company received 1,255 applications (including 46 transferred by other Public Authorities to BEL) during the period from April 2025 to March 2026 and 39 RTI applications were carried forward from the year 2024-25. A total of 1,128 applications were responded including 106 applications that were rejected, out of a total of 1,294 applications. Your Company received 122 First Appeals during the period, out of which 114 were disposed. Quarterly RTI returns for all the four (4) quarters have been submitted to the Central Information Commission.

Meetings of Board and Committee(s)

During the year, eight Board meetings were held and the maximum interval between any two meetings was not more than 120 days. The details of meetings of the Board and Committee(s) held during FY 2025-26 are furnished in the Corporate Governance Report, which forms a part of this report.

Change in Directors & Key Managerial Personnel and their Shareholding

The following changes took place in the Directorate and Key Managerial Personnel of your Company during FY 2025-26:

Lt. General Vishwambhar Singh (Retd.) (DIN: 09461326) ceased to be an Independent Director with effect from 23 April 2026 upon completion of his tenure. Mr. K. V. Suresh Kumar (DIN: 10200827) ceased to be the Director (Marketing) with effect from 1 July 2026 on attaining the age of superannuation.

Mr Manoj Jain, Chairman & Managing Director, Mr Damodar Bhattad S, Director (Finance) and Chief Financial Officer and Mr S Sreenivas, Company Secretary, are the KMPs, in terms of Section 203 of the Companies Act, 2013.

Mr Rajnish Sharma (DIN: 10738394), retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.

The details of Directors and Key Managerial Personnel (KMPs) who are holding shares in the Company as on 31 March 2026 are given below:

The Company has not issued any convertible securities during the year.

Directors' Responsibility Statement

To the best of their knowledge and belief and according to

the information and explanations obtained by them, your

Directors, in terms of Sections 134(3)(c) & 134(5) of the

Companies Act, 2013 state that:

a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2026 and of the profit of the Company for the year ended 31 March 2026;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a going concern basis;

e) the Directors ensured proper internal financial controls were in place and such financial controls were adequate and were operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws were in place, and the same were adequate and operating effectively.

Integrated Report

The Company, has voluntarily provided an Integrated

Report, which encompasses both financial and non-financial

information to enable the Members to take well-informed decisions and have a better understanding of the Company's short, medium and long-term perspectives. The Report also touches upon aspects such as the organisation's strategy, governance framework, performance and prospects of value creation based on the six forms of capital viz. financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital and natural capital.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and the Company's operations in future.

Events Subsequent to the Date of Financial Statements

There are no material changes and commitments affecting the financial position of the Company which occurred between 31 March 2026 and the date of signing of this Report.

Related Party Transactions

There were no materially significant related party transactions with the Company's Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties that were entered into during FY 2025-26 were on an arm's length basis and were in the ordinary course of business. None of the transactions with related parties fall under the scope of Section 188(1) of the Companies Act, 2013. All Related Party Transactions are placed before the Audit Committee and also before the Board for approval, if required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transactions has been uploaded on the Company's website www.bel-india.in. Information pursuant to Section 134(3)(h) of the Companies Act, 2013, read with rule 8(2) of the Companies (Accounts) Rules, 2014 in form AOC-2 is attached to this report as Annexure-1.

Corporate Social Responsibility

Your Company has formulated a Corporate Social Responsibility Policy pursuant to the provisions of Section 135 & Schedule VII of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014, read with various clarifications, amendments issued by the Ministry of Corporate Affairs (MCA). The Corporate Social Responsibility Policy is posted on the Company's website, www.bel-india.in. The CSR activities undertaken by your Company are in-line with the applicable Government Legislations & Guidelines issued from time to time, directing CSR fund distribution, themes for CSR expenditure, areas of operation etc.

Community interventions by your company focus on holistic development, institution building and sustainability-related initiatives. The focus sectors are Healthcare, Education, Skill Development, Rural Development and Environmental Sustainability. By implementing capacity building measures, empowering marginalised and underprivileged communities, your company strives for inclusive growth and equitable societal development. During FY 2025-26, your company undertook CSR projects majorly in the theme of Healthcare with preference being given to Aspirational Districts identified by NITI Aayog. Accordingly, your Company has rolled out focussed interventions to augment health infrastructure in Government Hospitals specially for the women. Education sector was also prioritised in enabling the access to digital learning tools in the rural, specifically in the tribal areas. Your Company also rolled out CSR interventions promoting skills training, thus enhancing the employability of youth. Pursuant to the requirement under the Companies (Corporate Social Responsibility) Rules, 2014 (as amended), a report on CSR activities for FY 2025-26 is annexed herewith as Annexure-2.

Statutory Auditors

Pursuant to Section 139(5) of the Companies Act 2013, for FY 2025-26, the Comptroller and Auditor General of India (C&AG) appointed M/s RAO & EMMAR, Chartered Accountants, Bengaluru, as Statutory Auditors of the Company for the audit of accounts of Bangalore Complex, Hyderabad unit, Chennai unit and Corporate Office. M/s C V Chitale & Co., Chartered Accountants, Pune, were appointed as Branch Auditors of Pune & Navi Mumbai units. M/s Dhawan & Co, Chartered Accountants, New Delhi, were appointed as Branch Auditors of Ghaziabad unit, Panchkula unit and Kotdwara unit. M/s E C & Associates, Chartered Accountants, Machilipatnam, were appointed as Branch Auditors for the Machilipatnam unit.

The Statutory Auditors' Report on financial statements for FY 2025-26 and 'Nil' comments of the Comptroller & Auditor General of India (C&AG) under Section 143(6)(b) of the

Companies Act, 2013 on the financial statement, including consolidated financial statement, are appended to the Annual Report.

Cost Auditors and Maintenance of Cost Records

Your Company appointed M/s GNV & Associates, Cost Accountants, Bengaluru, as Cost Auditors of the Company for FY 2025-26 for the audit of the cost records of the Company. The Company maintains cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (as amended), the Company has appointed M/s Thirupal Gorige & Associates LLP, Practicing Company Secretaries, Bengaluru for FY 2025-26 to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed to this report as Annexure-3.

The Secretarial Auditor in his report observed that - (i) During FY 2025-26, the composition of Board was not in terms of Regulation 17(1) of SEBI (LODR) Regulations, 2015, Section 149 of the Companies Act, 2013 and DPE Guidelines, due to vacancies in the position of Independent Directors. (ii) The Composition of Audit Committee was not in terms of Regulation 18 of SEBI (LODR) Regulations, 2015, Section 177 of the Companies Act, 2013 and DPE Guidelines w.e.f. 01 April 2025 to 15 May 2025, due to vacancies in the position of Independent Directors. (iii) The Composition of Nomination and Remuneration Committee was not in terms of Regulation 19 of SEBI (LODR) Regulations, 2015, Section 178(1) of the Companies Act, 2013 and DPE Guidelines w.e.f. 01 April 2025 to 20 May 2025, due to vacancies in the position of Independent Directors. (iv) The composition of the Stakeholders Relationship Committee was not in terms of Regulation 20 of SEBI (LODR) Regulations, 2015 and Section 178(5) of the Companies Act, 2013 w.e.f. 01 April 2025 to 20 May, 2025, due to vacancies in the position of Independent Directors. (v) The Composition of Risk Management Committee was not in terms of Regulation 21 of SEBI (LODR) Regulations, 2015 w.e.f. 01 April 2025 to 20 May 2025, due to vacancies in the position of Independent Directors. (vi) The Composition of the CSR Committee was not in terms of Section 135 of the Companies Act, 2013 w.e.f. 01 April 2025 to 20 May 2025, due to vacancies in the position of Independent Directors.

It is informed that the above mentioned non-compliance is due to the non-appointment of the requisite number of Independent Directors on the Board of BEL. BEL being a Govt.

Company, all Directors on the Board of BEL are appointed by the Govt. of India, and the selection process & appointment, which involves various Ministries and approval by the ACC, takes time and is beyond the control of the Company.

Reporting of Frauds by Auditors

During the year, neither the Statutory Auditor nor the Secretarial Auditor has reported to the Audit Committee under Section 143(2) of the Companies Act, 2013, any instance of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board's Report.

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return in the prescribed format has been hosted on the website of the company at - https://bel-india. in/investors/#annualreports.

Risk Management

Pursuant to Reg.21 of SEBI (LODR) Regulations, 2015, the Board of Directors of the Company has constituted a Risk Management Committee. The details of the Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report and a detailed note on Risk Management is provided in the Management Discussion and Analysis Report, which forms a part of this report.

Company's Policy on Director's Appointment, Remuneration and Board Evaluation

The Board has, on the recommendation of the Nomination & Remuneration Committee, framed a policy for the selection and appointment of Directors, Senior Management and their remuneration, Board Evaluation, etc. The details are set out in the Corporate Governance Report, which forms part of this report.

Vigil Mechanism/Whistle Blower Policy

The Company has a vigil mechanism named the WhistleBlower Policy to deal with instances of fraud, mismanagement and unethical behaviour, if any. The details of the policy are set out in the Corporate Governance Report.

Declaration from Independent Director(s)

The Company has received necessary declaration from Independent Director(s) of the Company under Section 149(7) of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI (LODR) Regulations, 2015 that the Independent Director(s) of the Company meet with the criteria of his Independence laid down in the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Management Discussion and Analysis Report

Management Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the Government (DPE) Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report as Annexure-4.

Particulars of Loans, Guarantees & Investments

In terms of Circular No. GSR 463(E) dated 5 June 2015, issued by the Ministry of Corporate Affairs, Government of India, the Company being a Government Company engaged in Defence production is exempt from Section 186 of the Companies Act, 2013.

Particulars of Employees and Related Disclosures

The provisions of Section 197 of the Companies Act and the relevant Rules regarding particulars of employees drawing remuneration in excess of the limits specified are exempted for Government Companies, in view of the Gazette Notification No. GSR 463 (E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India.

Internal Financial Controls

The Company has in place adequate internal financial controls with reference to financial statements. A detailed note on Internal Financial Controls is provided in the Management Discussion and Analysis Report, which forms part of this report.

Audit Committee

As on 31 March 2026, the Audit Committee comprised three Independent Directors, viz., Lt. General (Retd.) Vishwambhar Singh as Chairman, Mr Pradeep Tripathi and Mr Bharatsinh Prabhatsinh Parmar as Members. During FY 2025-26, all the recommendations made by the Audit Committee were accepted by the Board.

Corporate Governance Report

In terms of Regulation 34 of the SEBI (LODR) Regulations, 2015 and DPE Guidelines, a Report on Corporate Governance along with a Compliance Certificate issued by the Statutory Auditors of the Company is attached with this report as Annexure-5.

Business Responsibility and Sustainability Report (BR&SR)

The SEBI (LODR) Regulations, 2015 mandated the inclusion of the Business Responsibility & Sustainability Report (BR&SR) as part of the Annual Reports for the top 1,000 listed entities based on market capitalisation. In terms of Regulation 34(2) (f) of Listing Regulations, a BR&SR for FY 2025-26 describing the initiatives taken by the Company from an Environmental,

Social and Governance (ESG) perspective, in the format as specified by SEBI from time to time, is attached with this report as Annexure-6, along with the Reasonable Assurance Certificate.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

Your Company, being a Defence PSU, the disclosure of information with respect to conservation of energy, technology absorption, foreign exchange earnings and outgo under the provisions of Section 134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 (as amended) is not required as the Ministry of Corporate Affairs vide Notification GSR No. 680 (E) dated 4 September 2015 has granted exemption to Defence Public Sector Undertakings.

Compliance with Secretarial Standards

The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

Valuation for one time settlement

There was no instance of one time settlement with any bank or financial institution.

Compliance with Maternity Benefit Act, 1961

The Company is compliant with the applicable provisions of the Maternity Benefit Act, 1961 and has policies, systems and processes in place to ensure ongoing compliance.

Proceedings under the Insolvency and Bankruptcy Code, 2016

No proceedings are initiated/pending against the Company under the Insolvency and Bankruptcy Code, 2016.

State of Affairs

The Company did not undergo any change in the nature of its business during FY 2025-26.

Acknowledgements

Your Directors place on record their deep appreciation and gratitude for the valuable support received from all the customers, particularly the Defence Services and the Paramilitary Forces and look forward to their continued support and co-operation in future. Your Directors also place on record their gratitude for the support received from the various Ministries of the Government of India, especially the Ministry of Defence, and the Department of Defence Production. Your Directors express their gratitude to the Defence Research and Development Organisation (DRDO) and the various Research Laboratories under DRDO, particularly in the joint development programmes and new products. Your Directors express their sincere thanks to the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditors, Cost Auditors, Secretarial Auditors, Company's Bankers, Collaborators and Vendors. Your Directors appreciate the sincere effort by the employees at all levels, which enabled the Company to achieve a good performance during the year. Your Directors express their appreciation and gratitude to all the shareholders/investors for the trust and confidence reposed in the Company and look forward to their continued support and participation in sustaining the growth of the Company in the coming years.

For and on behalf of the Board

Bengaluru Manoj Jain

1 August 2026 Chairman & Managing Director