41  Employee benefits

      

The Group has certain defined contribution plans as below:

(i)      Defined benefit obligations in Indian entities
      

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Indian Accounting Standard 19 the details of which are as hereunder.

Funded schemes
    

Gratuity

The Company provides for gratuity and ex-gratia payments, if applicable, to employees. The gratuity and ex-gratia benefit (if any) payable to the employees of the Company is greater or equal to the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time, including consequent changes arising from the Code on Social Security,2020 and related rules). Employees who are in continuous service for period as specified under the Act are eligible for gratuity and ex-gratia, if any. This plan is a funded plan and the Company makes contributions to approved gratuity fund.

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Amount recognised in Balance Sheet
Present value of funded defined benefit obligation (DBO)		571.55		480.45
Fair value of plan assets		(500.22)		(495.53)
Net funded obligation		71.33		(15.08)
Present value of unfunded defined benefit obligation		–		–
Amount not recognized due to asset ceiling		–		1.46
Net defined benefit liability/(asset) recognised in Balance Sheet		71.33		(13.62)
Expense recognised in the Statement of Profit and Loss
Current service cost		34.60		29.70
Past service cost		73.74		–
Interest on net defined benefit liability/(asset)		(0.46)		(1.77)
Total expense charged to Statement of Profit and Loss		107.88		27.93
Amount recorded as Other Comprehensive Income
Opening amount recognized in OCI outside Statement of Profit and Loss		2.25		22.78
Remeasurements during the period due to
Changes in financial assumptions		(6.66)		9.35
Changes in demographic assumptions		0.64		(11.29)
Experience adjustments		10.12		(5.03)
Actual return on plan assets less interest on plan assets		(0.55)		(9.86)
Adjustment to recognize the effect of asset ceiling		(1.55)		(3.70)
Closing amount recognized in OCI outside Statement of Profit and Loss		4.25		2.25

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Reconciliation of net liability/(asset)
Opening net defined benefit liability/(asset)		(13.62)		(16.45)
Expense charged to Statement of Profit and Loss		107.88		27.93
Amount recognized outside Statement of Profit and Loss		2.00		(20.53)
Employer contributions		(24.93)		(4.57)
Impact of liability assumed or (settled)		–		–
Closing net defined benefit liability/(asset)		71.33		(13.62)

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Movement in benefit obligation
Opening of defined benefit obligation		480.45		478.60
Current service cost		34.60		29.70
Past service cost		73.74		–
Interest on defined benefit obligation		30.47		30.26
Remeasurements due to:
Actuarial loss/(gain) arising from change in financial assumptions		(6.66)		9.35
Actuarial loss/(gain) arising from change in demographic assumptions		0.64		(11.29)
Actuarial loss/(gain) arising on account of experience changes		10.12		(5.03)
Benefits paid		(51.81)		(54.62)
Liabilities assumed/(settled)		–		3.48
Closing of defined benefit obligation		571.55		480.45

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Movement in plan assets
Opening fair value of plan assets		495.53		499.86
Employer contributions		24.93		4.57
Interest on plan assets		31.01		32.37
Remeasurements due to:
Actual return on plan assets less interest on plan assets		0.56		9.87
Benefits paid		(51.81)		(54.62)
Assets acquired/(settled)		–		3.48
Assets distributed on settlements		–		–
Closing fair value of plan assets		500.22		495.53

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Disaggregation of assets
Category of assets
Insurer managed funds.		500.22		495.53
Others		–		–
Grand Total		500.22		495.53

Sensitivity Analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

Particulars		As at 31 March 2026				As at 31 March 2025
		Discount rate		Salary escalation rate		Discount rate		Salary escalation rate
Senior staff
Impact of increase in 50 bps on DBO		(2.66%)		2.55%		(2.79%)		2.86%
Impact of decrease in 50 bps on DBO		2.82%		(2.42%)		2.96%		(2.73%)
Junior staff
Impact of increase in 50 bps on DBO		(3.56%)		3.11%		(3.49%)		3.66%
Impact of decrease in 50 bps on DBO		3.86%		(2.84%)		3.79%		(3.41%)

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Funding arrangement and policy

The money contributed by the Group to the fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to insurance companies. The insurance companies in turn manage these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations.

There is no compulsion on the part of the Group to fully pre fund the liability of the Plan. The Group’s philosophy is to fund the benefits based on its own liquidity and tax position as well as level of under funding of the plan.

The expected contribution payable to the plan next year is ₹ 50.5 crore.

Projected plan cash flow

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan:

(₹ In Crore)
Particulars		Less than a year		Between 1 – 2 years		Between 3 -5 years		Over 5 years		Total
31 March 2026
Senior staff		85.83		25.71		55.45		265.12		432.11
Junior staff		81.43		35.11		77.98		448.04		642.56
31 March 2025
Senior staff		41.99		50.11		56.09		227.72		375.91
Junior staff		74.38		31.70		59.14		343.64		508.86

Particulars		As at 31 March
		2026		2025
Weighted average duration of defined benefit obligation (in years)
Senior Staff		7.80		5.75
Junior Staff		8.61		7.27

		As at 31 March
Particulars		2026		2025
Principal Actuarial Assumptions (Expressed as Weighted Averages)
Discount rate (p.a.)		7.13%		6.85%
Salary escalation rate (p.a.) – senior staff		10.00%		10.00%
Salary escalation rate (p.a.) – junior staff		10.00%		10.00%

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market.

     

Provident Fund:

(₹ In Crore)
		As at 31 March
Particulars		2026		2025
Amount recognised in Balance Sheet
Present value of funded defined benefit obligation		1,641.06		1,571.04
Fair Value of Plan Assets		(1,692.52)		(1,600.19)
Net funded obligation		(51.46)		(29.15)
Amount not recognized due to asset ceiling		51.46		29.15
Net defined benefit liability/(asset) recognized in balance sheet		–		–
Expense recognised in the Statement of Profit and Loss
Current service cost		47.98		45.85
Total expenses charged to Statement of Profit and Loss		47.98		45.85
Amount recorded as Other Comprehensive Income
Opening amount recognized in OCI outside Statement of Profit and Loss		–		–
Remeasurements during the period due to
Changes in financial assumptions		71.58		48.76
Changes in demographic assumptions		–		–
Experience adjustments		(50.21)		(28.22)
Actual return on plan assets less interest on plan assets		(41.69)		4.28
Adjustment to recognize the effect of asset ceiling		20.32		(24.82)
Closing amount recognized in OCI outside Statement of Profit and Loss		–		–
Reconciliation of net liability/(asset)
Opening net defined benefit liability/(asset)		–		–
Expense charged to Statement of Profit and Loss		47.98		45.85
Employer contributions		(47.98)		(45.85)
Closing net defined benefit liability/(asset)		–		–
Movement in benefit obligation
Opening of defined benefit obligation		1,571.04		1,516.11
Current service cost		47.98		45.85
Interest on defined benefit obligation		105.66		106.56
Remeasurements due to:
Actuarial loss/(gain) arising from change in financial assumptions		71.58		48.76
Actuarial loss/(gain) arising on account of experience changes		(50.21)		(28.22)
Employee contributions		81.15		80.53
Benefits paid		(183.79)		(176.61)
Liabilities assumed/(settled)		(2.35)		(21.94)
Closing defined benefit obligation		1,641.06		1,571.04
Movement in plan assets
Opening fair value of plan assets		1,600.19		1,566.45
Interest on plan assets		107.65		110.19
Remeasurements due to:
Actual return on plan assets less interest on plan assets		41.69		(4.28)
Employer contributions during the period		47.98		45.85
Employee contributions during the period		81.15		80.53
Benefits paid		(183.79)		(176.61)
Assets acquired/(settled)		(2.35)		(21.94)
Closing fair value of plan assets		1,692.52		1,600.19

(₹ In Crore)
		As at 31 March
Particulars		2026		2025
Disaggregation of assets
Quoted
Government debt instruments		1,001.52		1,007.28
Other debt instruments		560.35		499.57
Others		66.87		30.08
Unquoted
Others		63.78		63.26
Total		1,692.52		1600.19

Particulars		As at 31 March
		2026		2025
Key actuarial assumptions
Discount rate (p.a.)		7.00%		6.85%
Future derived return on assets (p.a.)		8.38%		8.22%
Discount rate for the remaining term to maturity of the investment (p.a.)		6.55%		6.55%
Average historic yield on the investment (p.a.)		7.93%		7.92%
Guaranteed rate of return (p.a.)		8.25%		8.25%

        

Unfunded schemes

(₹ In Crore)
Particulars		Compensated Absences
		As at 31 March 2026		As at 31 March 2025
Present value of unfunded obligations		168.87		149.64
Expense recognized in the Statement of profit and loss		29.93		10.16
Amount recorded as Other Comprehensive Income
Discount rate (p.a.)		7.13%		6.85%
Salary escalation rate (p.a.) – senior staff		10.00%		10.00%
Salary escalation rate (p.a.) – junior staff		10.00%		10.00%

Compensated absences

The compensated absences cover the Group’s liability for casual and earned leave.

Entire amount of the provision is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

(₹ In Crore)
		As at 31 March
Particulars		2026		2025
Compensated absences expected to be settled after 12 months		133.47		118.85

(₹ In Crore)
		As at 31 March
Particulars		2026		2025
Amount recognised in the Statement of Profit and Loss
Defined contribution plans:
Superannuation paid to trust		8.62		8.67
Pension fund paid to Government authorities		10.74		11.36
Provident fund paid to Government authorities		10.04		6.10
Others		0.70		1.62
Defined Benefit Plans:
Gratuity		107.88		27.93
Provident fund paid to trust		47.98		45.85
Others		5.32		2.72
Total		191.28		104.25

(ii)	Defined benefit obligations in foreign entities
	Defined benefit obligations in foreign entities: Contributions are made to defined contribution plans in foreign entities as per regulations of the respective region. i) Group is obliged to make a severance payment to all employees in Austria whose employment relationship began before 1 January 2003 upon termination by the employer or at the time of retirement. This performance-based obligation depends on the number of years of service and the relevant salary at the time of severance pay and amounts to between two and twelve months’ salary.
	For all employment relationships established in Austria after 31 December 2002, the Group pays 1.53% of the salary per month into a employee provision fund, in which the contributions are invested in an employee’s account and paid out to him or passed on as an entitlement upon termination of the employment relationship. The Group is only obliged to pay the contributions that are recognized in the expenditure for which they were paid in the financial year for which they were paid (defined contribution obligation). For employees of Austrian group companies who entered into employment on or after 1January 2003, contributions for severance payments to a statutory employee provision fund in the amount of 1.53% of wages or salaries were paid.

Details of net debts from Severance pay plans as follows:

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Amount recognised in Balance Sheet
Present value of funded defined benefit obligation (DBO)		238.46		–
Fair value of plan assets		–		–
Net funded obligation		238.46		–
Present value of unfunded defined benefit obligation		–		–
Amount not recognized due to asset ceiling		–		–
Net defined benefit liability/(asset) recognized in balance sheet		238.46		–
Expense recognised in the Statement of Profit and Loss
Current service cost		76.98		–
Past service cost		–		–
Interest on net defined benefit liability/(asset)		3.03		–
Total expense charged to Statement of Profit and Loss		80.01		–
Amount recorded as Other Comprehensive Income
Opening amount recognized in OCI outside Statement of Profit and Loss		–		–
Remeasurements during the period due to
Changes in financial assumptions		–		–
Changes in demographic assumptions		–		–
Experience adjustments		–		–
Actual return on plan assets less interest on plan assets		–		–
Adjustment to recognize the effect of asset ceiling		–		–
Closing amount recognized in OCI outside Statement of Profit and Loss		–		–
(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Reconciliation of net liability/(asset)
Opening net defined benefit liability/(asset)		–		–
Add: Increase in DBO liability due to acquisition of subsidiary		155.32		–
Expense charged to Statement of Profit and Loss		80.01		–
Amount recognized outside Statement of Profit and Loss		–		–
Employer contributions		–		–
Impact of liability assumed or (settled)*		–		–
Effects of foreign exchange rate		3.13		–
Closing net defined benefit liability/(asset)		238.46		–
Movement in benefit obligation
Opening of defined benefit obligation		–		–
Add: Increase in DBO liability due to acquisition of subsidiary		155.32		–
Current service cost		76.98		–
Past service cost		–		–
Interest on defined benefit obligation		3.03		–
Remeasurements due to:
Actuarial loss/(gain) arising from change in financial assumptions		–		–
Actuarial loss/(gain) arising from change in demographic assumptions		–		–
Actuarial loss/(gain) arising on account of experience changes		–		–
Benefits paid		–		–
Liabilities assumed/(settled)		–		–
Liabilities extinguished on settlements		–		–
Effects of foreign exchange rate		3.13
Closing of defined benefit obligation		238.46		–
Movement in plan assets
Opening fair value of plan assets		–		–
Employer contributions		–		–
Interest on plan assets		–		–
Remeasurements due to:
Actual return on plan assets less interest on plan assets		–		–
Benefits paid		–		–
Assets acquired/(settled)		–		–
Assets distributed on settlements		–		–
Closing fair value of plan assets		–		–
Disaggregation of assets
Category of assets
Insurer managed funds.		–		–
Others		–		–
Grand Total		–		–

Sensitivity Analysis

A change (+/- 0.5 percentage points) in the ‘actuarial interest rate’ and ‘wage/salary trend’ parameters would have had the following impact on the present value of future payments as of 31 December 2025:

Particulars		As at 31 March 2026				As at 31 March 2025
		Discount rate		Salary escalation rate		Discount rate		Salary escalation rate
Impact of increase in 50 bps on DBO		(4.50%)		4.80%		–		–
Impact of decrease in 50 bps on DBO		4.80%		(4.50%)		–		–

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Projected plan cash flow

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan:

(₹ In Crore)
Particulars		Less than a year		Between 1 – 5 years		Between 6 -10 years		More than 10 years		Total
31 March 2026		12.10		53.58		55.09		119.70		240.47
31 March 2025		–		–		–		–		–

The weighted remaining terms (duration) of the severance pay obligations are 9 years as of 31 March 2026.

		As at 31 March
Particulars		2026		2025
Principal Actuarial Assumptions (Expressed as Weighted Averages)
Discount rate (p.a.)		3.98%		–
Salary escalation rate (p.a.)		1.90%		–

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market.

        

Unfunded schemes

(₹ In Crore)
Particulars		Compensated Absences
		As at 31 March 2026		As at 31 March 2025
Present value of unfunded obligations		69.25		–
Expense recognized in the Statement of profit and loss		–		–
Amount recorded as Other Comprehensive Income		–		–
Discount rate (p.a.)		0.00%		0.00%
Salary escalation rate (p.a.)		0.00%		0.00%

Compensated absences

The compensated absences cover the Group’s liability for casual and earned leave.

Entire amount of the provision is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations.

(₹ In Crore)
		As at 31 March
Particulars		2026		2025
Compensated absences expected to be settled after 12 months		–		–

Jubilee/Anniversary bonuses

On the basis of collective agreements, companies of the BAIHAG-Group are obliged to pay jubilee bonuses to employees in Austria in accordance with the achievement of certain years of service (from 25 years of service) (performance-oriented obligation). The interest on this is recognized in other financial income.

The obligations for claims from anniversary bonuses developed as follows:

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Reconciliation of net liability/(asset)
Opening net defined benefit liability/(asset)		–		–
Add: Increase in liability due to acquisition of subsidiary		70.09		–
Expense charged to Statement of Profit and Loss		(1.97)		–
Amount recognized outside Statement of Profit and Loss		–		–
Employer contributions		–		–
Impact of liability assumed or (settled)		–		–
Effects of foreign exchange rate		1.41		–
Closing net defined benefit liability/(asset)*		69.53		–
* The weighted remaining terms (duration) of the jubilee bonus obligations are 13 years as of 31 March 2026.

(₹ In Crore)
Particulars		As at 31 March
		2026		2025
Amount recognised in the Statement of Profit and Loss
Defined contribution plans:
Superannuation paid to trust		–		–
Pension fund paid to Government authorities		–		–
Provident fund paid to Government authorities		–		–
Others		59.48		4.76
Defined Benefit Plans:
Severance Pay		80.01		–
Anniversary Bonus		(1.97)		–
Others		–		–
Total		137.52		4.76