Your Directors take pleasure in presenting Statement of Accounts, both on Consolidated and Standalone basis, for Financial Year (FY) 2025-26 together with Report of the Auditor's.

Financial Results

Financial Results for FY 2025-26 are summarized below : (' in Millions)

Company's Performance

During FY 2025-26, your Company strengthened its engagement with leading domestic steel producers, supported by advanced technology capabilities, continuous innovation at its R&D centre. Your Company also made steady progress in its expansion initiatives, especially the greenfield project at Khordha, Odisha. On the product and technology front, the Company introduced advanced refractory and automation solutions, including, high-performance snorkels, in-house tube changer refractories, SIB-HSD1 tube changer mechanism, which enhanced/will enhance operational efficiency and productivity for Customers. Your Company's Total Refractories Management (TRM) model also witnessed encouraging market acceptance, strengthening customer integration and supporting long-term growth opportunities. Despite cost pressures impacting short-term profitability and few key financial ratios, your Company continued to focus on operational efficiencies, driving higher value-added product mix, expanding its Domestic and International presence and disciplined execution of its Capital Expenditure Plans.

Dividend and Bonus Shares

Following Dividend Policy of the Company, your Directors have recommended payment of Final Dividend of 21.5% i.e ' 2.15/- per Equity Share for FY 2025-26, subject to your approval at ensuing Annual General Meeting (AGM) and deduction of tax at source. Your Company has not transferred any amount to General Reserve for the Financial Year 2025-26.

On 21st July 2025, your Company issued and allotted 3,60,39,312 Equity Shares of ' 10/- each as fully paid up Bonus Shares in the ratio 1:1 i.e. 1 (one) Bonus Equity Share of ' 10/- each for every 1 (one) fully paid up Equity Share held.

Industry Review, Future Outlook and Expansion Plans

Steel making remains the dominant driver of refractory demand, consuming the largest share of materials globally. As Steel Production rises to meet infrastructure and construction needs, demand for high performance refractories used in Furnaces, Kilns and Reactors also increases. Economies investing in Urbanization and Industrialization continue to sustain appetite for steel and refractory products. Other key consumers of Refractory include Cement, Glass, and Non-Ferrous Metal. These sectors have seen steady expansion, contributing to broader refractory demand.

India remains the fastest growing market of Steel Industry, while China is stabilizing, and major developed economies such as the EU and USA are expected to witness positive growth driving global demand to 1,762 Million Tonnes in 2027.

The refractory industry is projected to experience steady growth, driven by industrial expansion and advancements in Materials Technology. Market size is expected to rise from USD 36.42 billion in 2026 to nearly USD 49.33 billion by 2035, reflecting a CAGR of about 3.4%. Asia Pacific continues to dominate production and consumption, led by strong growth in India and China, while North America and Europe focus on technological upgrades and sustainability centered innovations.

Geopolitical tensions, particularly the ongoing conflict in the Middle East, pose short term challenges. Rising energy prices and disruptions to trade routes are increasing production costs for steelmakers and raw material expenses for refractory producers. While this weighs on immediate demand, Reconstruction and Industrial diversification in the region are expected to create fresh opportunities in the medium term.

Your Company remains well positioned to leverage growth opportunities in both Steel and Refractory Markets. With India and Asia Pacific driving demand, and sustainability and technology shaping industry evolution, your Company's focus on efficiency, innovation, and resilience ensures readiness to navigate short term geopolitical challenges while capturing long term growth potential. Cost rationalization measures, including energy efficiency programs and raw material sourcing strategies are also expected to improve margins.

Subsidiaries, Joint Ventures and Associate Companies

Your Company's Subsidiaries performed satisfactorily during FY 2025-26 and are hopeful that performance of your Company's Subsidiaries will further improve in FY 2026-27. Further contribution of Subsidiaries to the overall performance of your Company is outlined in Note 37 of the Consolidated Financial Statements

On 4th July 2025, Company's UK-based Subsidiary, Monocon International Refractories Limited, incorporated a Wholly-Owned Subsidiary in Australia named Monocon Australia Pty Limited.

Form AOC-1, containing financial information of Subsidiary Companies, form part of this Report as Annexure 'D'. Shareholders who wish to obtain the complete Statement of Accounts and detailed information about Subsidiary Companies can send their requests at the Registered Office of the Company. They are available for inspection electronically to the members during working hours on working days (excluding Saturday) provided prior request therefor is sent at investorcomplaints@ifgl.in and are also available on Company's website : www.ifglgroup.com.

Consolidated Financial Statements

The US region delivered strong revenue growth during the year, complemented by impressive performance in Europe. Other International markets also contributed positively, underscoring the broad-based momentum across our global operations. On a consolidated basis, your Company achieved modest Total Income growth of 14% for the full year, with EBITDA margins at 7.7%.

In accordance with IND AS 110 and other relevant provisions particularly Section 129(3) of the Companies Act, 2013 (hereinafter referred to as 'the Act') Consolidated Financial Statements duly audited by Statutory Auditors, M/s S R Batliboi & Co. LLP (Regd No. 301003E/ E300005) form part of the Annual Report. Consolidated Financial Statements have been prepared considering Financial Statements of Subsidiary Companies and Reports of Auditors relating thereto wherever applicable.

Cash Flow Statement

As required under Regulation 34 of the SEBI LODR, 2015, Cash Flow Statement for FY 2025-26 forms part of the Annual Report.

Business Responsibility and Sustainability Report

Following provisions of Regulation 34(2)(f) of SEBI LODR, 2015, Business Responsibility and Sustainability Report for FY 2025-26 of your Company, being Annexure 'A' to this Report, has been hosted at https://ifglgroup.com/wp-content/uploads/2026/07/Business-Responsibility-and-Sustainability-Report-FY-2025-26.pdf .

Corporate Governance Report and Independent Auditors Report thereon

Corporate Governance Report (CG Report) pursuant to provisions of Regulation 34(3) read with Schedule V(C) of the SEBI LODR, 2015, along with Independent Auditors Report of M/s S R Batliboi & Co. LLP on compliance of conditions of Corporate Governance, which is self explanatory, form part of this Report and is annexed as Annexure 'B'.

Vigil Mechanism, Prevention of Sexual Harassment etc

Your Company have in place Policies including Vigil Mechanism (Whistle Blower), Prevention of Sexual Harassment, Insider Trading and Risks Management etc, which are commensurate to nature and size of Company's business and strengthened from time to time. Said Policies are also appearing at https://ifglgroup.com/investor/policy/. During the year under review, no complaint and/or alert was received or disposed off or pending under any of the aforesaid Policies. Internal Complaints Committees following provision of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 are also in place and functioning at each of the Manufacturing Facility and at Head & Corporate Office of your Company. The Risk Management framework is aimed at effectively mitigating company's various Business and Operational Risk through strategic actions. There were no elements of risk identified which may threaten the existence of the Company.

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, Annual Return as on 31st March 2026, is available at Company's website at https://ifglgroup.com/wp-content/uploads/2026/07/Annual-Return.pdf .

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

Prescribed particulars relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required under Section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are given in Annexure 'C' hereto.

Transactions with Related Parties

During FY 2025-26, your Company entered into transactions with Related Parties in ordinary course of its business at arm's length only. Since none of the transaction with Related Parties fell within scope of Section 188(1) of the Act, Related Party Transactions as required Section 134(3)(h) of the Act in Form AOC-2 are not required to be disclosed and form part of this Report.

During the year under review your Company did not enter any Material Related Party Transactions i.e transactions exceeding threshold specified in Schedule XII of SEBI LODR, 2015.

Related Party disclosures have been provided in notes to accounts annexed to the Financial Statements.

Internal Controls of the Company

Your Company has in place established Internal Control system designed to properly record financial and operational information and compliances of various Internal Controls and other Regulatory and Statutory Requirements. Internal Control system is commensurate to size, scale and complexity of Company's business operation and with the help of External and Internal Auditors functioned satisfactorily and effectively during the year under review. Said System was periodically reviewed and changes made wherever and whenever necessary.

Internal Financial Controls

Your Company has in place adequate Internal Financial Control Systems.

Disclosures

Your Company has neither given Loans nor Guarantees nor made Investments exceeding limits specified under Section 186 of the Act. Your Company did not accept any Deposits from the Public during FY 2025-26 too.

Other Disclosures including those to be made as per Section 134(3) of the Act read with Rules framed for the purposes thereof and those in SEBI LODR, 2015 have been included in Annexures forming part of this Report and also in Audited Statement of Accounts and Notes thereto. For the sake of brevity, they have not been reproduced herein again. CG Report contains details of meetings of your Board of Directors and Committees thereof held during FY 2025-26 and attendance thereat.

Following Regulation 17(8) read with Part B of Schedule II of SEBI LODR, 2015, Certificate on Financial Statements has been received from Managing Director and Chief Financial Officer of the Company.

Your Company have continued to place utmost importance to IT Security and strengthened the same including by introducing checks and balances.

Directors Responsibility Statement

Your Directors state that :

(a) in preparation of Annual Accounts, applicable Accounting Standards have been followed.

(b) Accounting Policies selected and applied are consistent and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the State of Affairs of the Company at the end of the FY and of the Profit and Loss of the Company for that period.

(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with provisions of the Act for safeguarding the Assets of the Company and for preventing and detecting fraud and other irregularities.

(d) the Annual Accounts have been prepared on a Going Concern basis.

(e) Internal Financial Controls i.e. Policies and Procedures for ensuring orderly and efficient conduct of business, including adherence to Company's Policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information, have been laid down and that such controls are adequate and operating effectively.

(f) proper systems to ensure compliance with provisions of all applicable laws have been devised and that such systems are adequate and operating effectively.

Financial Statements for FY 2025-26 have been Audited in accordance with Accounting Principles Generally Accepted in India as indicated in Report of the Statutory Auditors.

CSR, Human Resource and Industrial Relations

Your Company's CSR initiatives and activities are aligned with the requirements of Section 135 of the Act. The CSR Policy of your Company and initiatives undertaken by the Company on CSR activities during the year are included in Annual Report prepared in compliance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, which form part hereof as Annexure 'E'. Other details relating to Company's CSR are forming part of CG Report.

Details of Nomination and Remuneration Committee (NRC) are also provided in the CG Report. The Nomination and Remuneration Policy adopted by your Directors based on recommendation of NRC is available at https://ifglgroup.com/wp-content/uploads/2025/03/ nomination an remuneration policy2018.pdf. Said Policy inter-alia provides for matters concerning appointment and remuneration of Directors including criteria for determining qualifications, positive attributes, Independence of Directors and those provided in Section 178(3) of the Act.

The Company has complied with the applicable provisions of the Maternity Benefit Act ,1961.

An Annexure containing information in accordance with the provisions of Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Report as Annexure 'F'.

During FY 2025-26, 9 persons (including Executive Directors) employed with your Company received remuneration of ? 10.2 million per annum or more or ? 0.85 million per month or more. As on 31st March 2026, your Company including its Subsidiaries had directly employed 1513 people worldwide including 1180 in India.

The Company sustained its 5S initiative with active employee participation, further driving operational efficiency and reinforcing a culture of ownership and engagement.

The Company advanced its 'People First' program to strengthen employee engagement and well being, while investing in customer facing teams to drive greater value and performance.

Industrial Relations continued to remain cordial in your Company.

Directors and Key Managerial Personnel (KMPs)

Mr James Leacock McIntosh (DIN : 09287829) was to step down as Managing Director on 1st September 2025 but at the Board's request, continued in office until 28th February 2026. He ceased to be Managing Director on 1st March 2026 due to efflux of time. In line with Succession Planning, Mr Mihir Prakash Bajoria (DIN : 09346426) was appointed as Managing Director with effect from 1st March 2026 for a three year term.

Mr Arasu Shanmugam (DIN : 02316638) resigned as Director and CEO India on 6th April 2026. On 21st April 2026, Board approved appointment of Mr Mukesh Harshadrai Rawal (DIN : 11676514), as Additional Director and Non Executive Non Independent Director. He is proposed to be appointed as Whole time Director and to assume office as Director and CEO with effect from 16th August 2026, subject to requisite approvals. Mr Rawal, presently President of Company's US Subsidiary Mono Ceramics Inc., will cease to hold that position from close of 15th August 2026. Mr Rawal brings with him years of experience with your Company and in the Industry.

To comply with the provisions of Section 152 of the Act, Mr Mihir Prakash Bajoria (DIN : 09346426) is liable to retire by rotation at ensuing Annual General Meeting (AGM) and being eligible, has offered himself for re-appointment for further period liable to retire by rotation. The Board of Directors on the recommendation of Nomination and Remuneration Committee have recommended his re-appointment for consideration by the members at ensuing AGM.

Pursuant to the provisions of Section 149 of the Act, the Independent Directors have submitted declarations that each of them meets criteria of Independence as provided in Section 149(6) of the Act along with Rules framed thereunder and Regulation 16(1)(b) of the SEBI LODR, 2015. There has been no change in the circumstances affecting their status as Independent Directors of the Company. The Board is of the opinion that each Independent Director of the company possess requisite qualifications, experience and expertise and they hold highest standards of integrity (including the proficiency) and are eligible and independent of the Management.

All of the Directors, Key Managerial Personnel, Senior Management and other Management Personnel as on 31st March 2026, have confirmed compliance of Code of Conduct for Board of Directors including Independent Directors, Key Managerial Personnel, Senior Management and other Management Personnel of the Company. This Code continues to help the Company maintain standard of ethics and ensure compliance of Legal Requirements applicable.

Particulars of Company's Key Managerial Personnel are appearing at Note 36 of Audited Standalone Statement of Accounts as per Section 203 of the Act.

Performance Evaluation

Evaluation of Performance of the Board of Directors, its Committees, Individual Directors including Independent Directors and Chairman of Board, was carried out in accordance with the Companies Act, 2013 and SEBI LODR, 2015. The review confirmed that the Board and its Committees functioned satisfactorily, with an effective flow of information aligned to the Company's business and scale. Directors also received briefings on key regulatory and strategic matters, which further enhanced their performance.

Cost Auditor

Your Directors have re-appointed M/s Mani & Co., Practicing Cost Accountants as Cost Auditors of the Company for FY 2026-27. Your approval for payment of remuneration not exceeding ? 5 (five) lakhs to them is being sought inasmuch as an Ordinary Resolution has been included in Notice of ensuing AGM.

In accordance with the provisions of Section 148 of the Act, your Company maintained Cost Records and Accounts during FY 2025-26. Cost Audit Report for FY 2024-25 was filed with the Ministry of Corporate Affairs within prescribed time limit.

Secretarial Auditor

During FY 2025-26, M/s P Sarawagi & Associates, Practicing Company Secretaries, has been appointed as Secretarial Auditor of the Company for a five year term from FY 2025-26 to FY 2029-30.

Their Secretarial Audit Report in Form MR-3 form part hereof as Annexure 'G. They have also issued Secretarial Compliance Report in compliance of Regulation 24A of SEBI LODR, 2015, for Financial Year 2025-26. Both Secretarial Audit Report and Secretarial Complaince Report are self explanatory.

Statutory Auditors

Reports of the Statutory Auditors M/s S R Batliboi & Co. LLP (Regd No. 301003E/E300005), Chartered Accountants on Statement of Accounts for FY 2025-26 on Standalone and Consolidated basis are self-explanatory and do not contain any qualification, reservations, adverse remarks or disclaimers.

Report on Fraud by Auditors

For the year under review, neither Statutory Auditors nor Cost Auditors nor Secretarial Auditors have reported any instances of frauds committed in your Company by its Officers and/or Employees, to the Audit Committee/Board under Section 143(12) of the Act.

Material Changes and Commitments after the Financial Year

There have neither been any material changes and/or commitments, between 31st March 2026 and date of this report, affecting your Company's financial position nor nature of your Company's Business.

General

Your Directors confirm that no disclosure or reporting is required in respect of the following items as there was no transaction on these items during the year under review:

• Issue of Equity Shares with Differential Voting Rights as to Dividend, Voting or otherwise.

• No significant or material orders have been passed by any of the Regulators, Courts or Tribunals impacting the going concern status of your Company and its future operations.

• Issue of Sweat Equity Shares.

• No application made or any proceeding pending under Insolvency and Bankruptcy Code, 2016 during FY 2025-26

• No instance of One-Time Settlement with any Bank or Financial Institution.

The Company is in compliance of the applicable provisions of Secretarial Standards issued by the Institute of Company Secretaries of India.

Annexures forming part of this Report

Acknowledgement

Your Directors place on record their sincere appreciation for the dedication, commitment and hard work of all employees across the organization. They further acknowledge the invaluable support and cooperation received from Customers, Suppliers, Bankers and Other Stakeholders. Above all, the Board conveys its deep gratitude to the Shareholders for their continued trust, confidence and encouragement, which remain the cornerstone of the Company's growth and success.