Kirloskar Brothers Limited — Important, 05-12-2025: Disclosure of material issue

Kirloskar Brothers has completed the amalgamation of its step-down wholly-owned subsidiary, The Kolhapur Steel Ltd (TKSL), into another wholly-owned subsidiary, KPML. TKSL is now dissolved, streamlining the company's structure.

**Issue & Impact:** TKSL, the dissolved subsidiary, had a small financial footprint. For FY25, its turnover was Rs 27.9 Cr (0.61% of consolidated turnover) and it had a negative net worth of Rs 103.65 Cr. KPML, the surviving entity, is significantly larger with a FY25 turnover of Rs 574.3 Cr and net worth of Rs 273.5 Cr. This amalgamation simplifies group operations by removing a financially underperforming entity.

**Company’s Response:** This is an internal reorganization via a court-sanctioned scheme. There is no cash consideration or issuance of new shares involved, ensuring no dilution for shareholders and no impact on company cash flow.