3C IT Solutions & Telecoms India Ltd Management Discussions

1. MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report ( MD&A ) for the financial year 2025 26 provides an overview of the Companys business performance, operating environment, strategic developments, financial performance, opportunities, risks and future outlook. The discussion should be read together with the audited financial statements and related notes forming part of this Annual Report.

2. CORPORATE PROFILE

3C IT Solutions & Telecoms (India) Limited ( 3CITS or the Company ) is engaged in providing Information Technology and Telecom solutions, including IT infrastructure, IT hardware, IT asset management, IT rental and refurbished assets, managed services, cloud solutions, cybersecurity and related technology services.

The Company seeks to provide customer-centric technology solutions by combining infrastructure capabilities, technology products, implementation and support services with emerging capabilities in cloud, cybersecurity and managed services.

During FY 2025 26, the Company continued to strengthen its business portfolio and technology ecosystem while expanding its geographic presence and developing new service capabilities.

3. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Information Technology and Telecom industry continues to undergo rapid transformation, driven by digitalisation, cloud adoption, cybersecurity requirements, artificial intelligence, automation, data protection and increasing dependence on technology-enabled business processes.

Organisations across sectors are increasingly investing in IT infrastructure, cloud solutions, cybersecurity, managed services and technology lifecycle management. The growing complexity of IT environments has resulted in increasing demand for technology partners capable of providing integrated hardware, infrastructure, implementation, support and managed services.

Cybersecurity and data protection have emerged as critical business priorities due to the increasing sophistication of cyber threats and evolving regulatory requirements. Similarly, cloud adoption and managed services continue to provide opportunities for technology service providers to deliver scalable, secure and cost-efficient solutions.

The Company believes that these developments provide opportunities for businesses with capabilities across IT infrastructure, cloud, cybersecurity, managed services and technology support. 3CITS continues to strengthen its capabilities in these areas with the objective of developing a diversified and integrated technology solutions portfolio.

4. BUSINESS PERFORMANCE

During FY 2025 26, the Company continued to focus on business growth, strengthening of technology capabilities, development of new service offerings and expansion of its strategic partner ecosystem.

A significant strategic milestone during the year was the establishment of the AMD Centre of Excellence (COE) in Pune, which was inaugurated on 10 October 2025 at the Companys office. The Centre of Excellence represents the Companys focus on innovation-led and customer-centric IT and Telecom solutions and provides a platform for demonstrating and leveraging advanced AMD technology solutions.

During the year, the Company received various recognitions from its technology partners, including:

AMD Club Award;

AMD Award for Best Partner E&R Segment;

AMD Savex Best Performing Partner recognition;

AMD Lenovo Emerging Partner Mid-Market Business recognition; and

Vodafone Idea (Vi) recognition for Best Backend Technology.

The Company also established a Cloud Lab in Pune at Trinity Academy, supporting its efforts to strengthen its cloud capabilities and develop technology demonstration and service capabilities. The Company undertook a project for the supply and installation of Digital Labs at the State Academy of Training, Takyelpat, Manipur, strengthening its presence in technology-enabled institutional and infrastructure projects.

During the year, the Company received significant purchase orders from customers including Bajaj Housing Finance Limited, Cerebrat Tech Ventures & Midastech Ventures, Credence Infotech, D Y Patil International University, K J Infra Developers Private Limited and Kay Kay Overseas Corporation.

The significant purchase orders included approximately 1.00 crore from Bajaj Housing Finance Limited, 5.38 crore from Cerebrat Tech Ventures & Midastech Ventures, 3.21 crore from Credence Infotech, 3.83 crore from D Y Patil International University, 8.58 crore from K J Infra Developers Private Limited and 2.75 crore from Kay Kay Overseas

Corporation.

These orders reflect the Companys continued ability to address IT infrastructure and technology requirements across enterprise and institutional customers.

The Company also initiated development of a new Services segment, with particular focus on cybersecurity and other technology-enabled services, with the objective of progressively expanding its presence in higher-value technology services.

5. STRATEGIC DEVELOPMENTS AND PARTNERSHIPS

During FY 2025 26, the Company continued to strengthen its technology ecosystem through strategic collaborations and partnerships. The Company entered into a strategic collaboration with Rudrarya International LLP (Cybernara) to strengthen capabilities in cybersecurity, cloud, managed security, compliance, advisory, implementation and support services. The Company also developed partnerships and business relationships with NeSecure Telecoms for managed and support services and with other technology and service organisations including Metisoft, CMS Computers India and Grok Learning, among others.

The Company has also progressed towards a distributor arrangement with Jio Platform Limited for enterprise offerings, subject to completion of applicable commercial and contractual formalities.

The Company entered into an MOU with MIT ADT University for skill development and industry exposure.

The Company also entered into an MOU with SPPU Research Park Foundation for fostering innovation, entrepreneurship, incubation, industry-academia collaboration and technology commercialisation through strategic partnership initiatives.

To support customer servicing and business development, the Company expanded its support presence through locations in Delhi, Mumbai, Manipur and Guwahati.

The Company also initiated a Business Development / Associate Partners segment with the objective of expanding its market reach, strengthening its partner ecosystem and generating additional business opportunities.

6. PRODUCTS AND SERVICES / SEGMENT-WISE PERFORMANCE

The Companys business comprises multiple complementary technology segments.

A. IT Infrastructure and Hardware

IT infrastructure and hardware continue to form an important part of the Companys business. The Company provides IT hardware and infrastructure solutions to enterprise, institutional and other customers based on their technology requirements.

B. IT Rental and Refurbished Assets

The Company continues to develop its IT rental and refurbished asset business, providing customers with flexible and cost-effective technology deployment options. This segment also supports the Companys focus on IT asset lifecycle management.

C. Managed Services

The Company is developing its managed services capabilities through strategic partnerships and service arrangements with specialised technology partners. The focus is on providing ongoing technology support, infrastructure management and related services.

D. Cloud Services

The Company has strengthened its cloud capabilities through the establishment of the Cloud Lab in Pune. Cloud infrastructure and related services represent an important area of future business development for the Company.

E. Cybersecurity and Technology Services

The Company has initiated development of a dedicated Services segment with emphasis on cybersecurity and other technology-enabled services. Through strategic collaborations and partnerships, the Company is developing capabilities in cybersecurity, managed security, compliance, advisory, implementation and support services.

7. COMPETITIVE ADVANTAGE

The Company believes that its competitive position is supported by its integrated technology capabilities and expanding service portfolio.

Key strengths include:

Integrated IT infrastructure and technology solution capabilities;

Growing capabilities in cloud, cybersecurity and managed services;

AMD Centre of Excellence and Cloud Lab initiatives;

Strategic relationships with technology and service partners;

Ability to provide hardware, infrastructure and technology support services;

Expanding geographic support presence;

Development of an associate partner/business development ecosystem; and

Strengthening of quality, information security and process maturity capabilities through relevant certifications and assessments. The Company continues to focus on customer-centric solutions, technology partnerships and development of specialised capabilities to strengthen its competitive position.

8. FINANCIAL PERFORMANCE

The Companys financial performance during FY 2025 26 reflected significant improvement in revenue and profitability as compared with FY 2024 25.

Financial Highlights (Rs. in lakh)

Particulars	FY 2025 26	FY 2024 25	Change
Revenue from Operations (Net)	5,847.26	3,650.59	60.17%
Other Income	18.51	29.60	(37.47%)
Total Revenue Income	5,865.78	3,680.19	59.39%
Expenditure	5,806.84	3,668.02	58.31%
Profit Before Tax	58.94	12.16	384.54%
Profit After Tax	57.52	(5.70)	Significant

Revenue from Operations increased from 3,650.59 lakh in FY 2024 25 to 5,847.26 lakh in FY 2025 26, registering growth of approximately 60.17%.

Total Revenue Income increased from 3,680.19 lakh to 5,865.78 lakh, representing growth of approximately 59.39%. Profit Before Tax increased from 12.16 lakh in FY 2024 25 to 58.94 lakh in FY 2025 26, representing an increase of approximately 384.54%.

The Company reported a Profit After Tax of 57.52 lakh during FY 2025 26 as against a loss after tax of 5.70 lakh in FY

2024 25, reflecting a significant turnaround in profitability.

The improvement in financial performance was primarily supported by increased business volumes, execution of customer orders, growth in IT infrastructure and technology solutions and expansion of the Companys business relationships and service capabilities.

The Company continued to incur expenditure towards business development, expansion of service capabilities, technology initiatives and strengthening of its operational infrastructure. Management remains focused on improving operating efficiencies, strengthening margins and increasing the contribution from value-added technology services.

Financial Performance vis-à-vis Operational Performance:

The financial performance of the Company during FY 2025 26 reflects an improvement in its operational performance.

Revenue from Operations increased from 3,650.59 lakh in FY 2024 25 to 5,847.26 lakh in FY 2025 26, representing an increase of approximately 60.17%.

The growth in revenue was supported by increased business volumes, execution of customer orders and continued focus on the Companys IT infrastructure, technology solutions and service offerings. The Company also continued to strengthen its capabilities in areas such as IT infrastructure, cloud, cybersecurity, managed services and other technology-enabled solutions.

The improvement in operational performance was accompanied by an improvement in profitability. Profit Before Tax increased from 12.16 lakh in FY 2024 25 to 58.94 lakh in FY 2025 26, while the Company reported Profit After Tax of 57.52 lakh during FY 2025 26 as against a loss of 5.70 lakh in FY 2024 25.

The Company continues to focus on expanding its customer base, strengthening technology and service capabilities, improving operational efficiencies and developing strategic business relationships to support sustainable growth.

9. KEY FINANCIAL RATIOS

The following key financial ratios shall be incorporated based on the audited financial statements for FY 2025 26:

Ratio	Particulars Description	Ratio as on For the year ended March 31, 2026	Ratio as on For the year ended March 31, 2025	% Variance	Reason for change exceeding 25%
Current Ratio	Measures a company \u2019 s ability to pay short-term obligations or those due within one year.	1.52	6.01	-74.70%	The ratio has decreased significantly as compared to previous year, primarily due to a increase in current liabilities particularly borrowings, resulting in a reduced liquidity position.
Debt-Equity Ratio	Compares a companys total liabilities to its shareholder equity and can be used to evaluate how much leverage a company is using.	0.03	0.04	-28.73%	The ratio has decreased as compared to the previous year, mainly due to a reduction in borrowings and a corresponding increase in shareholders equity, resulting in a lower proportion of debt in the capital structure.
Debt Service Coverage Ratio	It indicates the ability of the company to service its Debt obligations, both principal and interest, from earnings generated from its operations.	11.25	3.55	217.22%	The Company has repaid significant borrowings during the year leading to a reduction in Interest cost & decrease in Total Debt due to which there is an increase in the ratio.
Return on Equity Ratio	It is a measure of financial performance calculated by dividing net income by shareholders equity.	0.04	- 0.0045	-1065.49%	The ratio has increase as compared to previous year, primarily due to increase in profitability during the year along with an increase in the Average Shareholders Equity base, resulting in a higher return on equity.
Inventory turnover ratio	It is the rate that inventory stock is sold, or used, and replaced.	14.76	6.67	121.23%	The ratio has increased as compared to the previous year, primarily due to a reduction in average inventory held during the year, resulting in improved efficiency in inventory utilisation.
Trade Receivables turnover ratio	It is a measure that quantifies a companys effectiveness in collecting its accounts receivable.	2.78	4.49	-38.14%	The decrease in ratio is primarily on account of decreased collection efficiency in the Current year resulting in a reduction in the Average Trade Receivables outstanding during the year.
Trade payables turnover ratio	It measures the average number of times a company pays its creditors over an accounting period.	4.01	8.48	-52.75%	Increase in credit Purchases & increase in trade payable leading to decrease in trade payable turnover ratio.
Net capital turnover ratio	It calculates how efficiently a company uses working capital to generate sales.	4.67	4.29	8.93%	-
Net profit ratio	It measures how much net income or profit is generated as a percentage of revenue.	0.01	- 0.0015	-733.16%	The ratio has increased as compared to the previous year, primarily due to a inclines in net profit margins, which increase the overall profitability in relation to revenue from operations.
Return on Capital employed Interest	It measures the companys profitability after factoring in the capital used to achieve that profitability. Measures the Company \u2019 s ability to meet its interest obligations from its earnings.	0.05	0.05	-1.45%	- The ratio increased significantly primarily due to a substantial increase in
Coverage Ratio		7.21	1.22	489.34%	Profit Before Tax coupled with a significant reduction in finance costs during FY 2025 26.
Operating Profit Margin	Measures the operating profitability of the Company as a percentage of revenue from operations.	0.85%	1.03%	-17.48%	-
Net Profit Margin	Measures the net profitability of the Company as a percentage of revenue from operations.	0.98%	-0.16%	Not meaningful	The ratio improved from a negative margin of 0.16% in FY 2024 25 to a positive margin of 0.98% in FY 2025 26, primarily due to the significant improvement in profitability during the year.
Return on Net Worth	Measures the return generated on the shareholders \u2019 net worth	4.47%	-0.67%	Not meaningful	The ratio improved from a negative return of 0.67% in FY 2024 25 to a positive return of 4.47% in FY 2025 26, primarily due to the significant improvement in profitability during the year.

General Ratios:

Gross Profit Ratio	Measures profit from direct operation of Organisation.	0.10	0.11	-8.54%	-
EBITDA
Ratio	-	0.02	0.03	-23.60%	-

The reasons for material variations in the above ratios will be provided based on the audited financial statements and underlying operational and financial factors.

10. OPPORTUNITIES

The Company believes that continued digital transformation and increasing dependence on technology provide significant opportunities across its business segments.

The key opportunities identified by the Company include:

Increasing adoption of cloud infrastructure and cloud services;

Growing demand for managed IT and technology support services;

Increasing cybersecurity awareness and security requirements;

Business opportunities arising from data protection and DPDP-related requirements;

Increasing technology adoption by enterprises and institutions;

Growing demand for integrated IT infrastructure and technology lifecycle management;

Opportunities in the Banking, Financial Services and Insurance (BFSI) sector;

Opportunities in the FinTech ecosystem;

Government and institutional digitalisation projects;

Expansion of the Companys geographic and partner network; and

Cross-selling of IT hardware, infrastructure, cloud, cybersecurity and managed services.

The Company intends to leverage its technology partnerships, expanding service capabilities and geographic presence to pursue these opportunities in a measured and sustainable manner.

11. THREATS AND CHALLENGES

The IT and technology industry is characterised by rapid technological changes, intense competition and evolving customer requirements. The Company faces competition from established technology companies, system integrators, specialised service providers and other market participants. Competitive intensity may result in pricing pressure and may impact operating margins. Rapid technological developments may also result in shorter product and technology lifecycles, requiring continuous investment in knowledge, technology capabilities and strategic partnerships. Other challenges may include fluctuations in hardware prices, supply-chain disruptions, vendor dependencies, customer credit cycles, working capital requirements and the need to continuously develop specialised technical capabilities. The Company also operates in an environment where cybersecurity threats and data protection requirements are continuously evolving. Management continues to monitor these developments and strengthen the Companys capabilities and processes accordingly.

12. RISK MANAGEMENT FRAMEWORK

The Company follows a risk management approach aimed at identifying, assessing, mitigating, monitoring and reporting material risks that may affect its business and operations. The principal areas of risk considered by the Company include:

Risk Category	Key Risk	Broad Mitigation Approach
Operational Risk	Operational disruptions, process inefficiencies and service delivery risks	Process controls, monitoring and periodic reviews
Financial Risk	Revenue fluctuations, cost pressures and liquidity requirements	Financial monitoring, budgeting and periodic review
Credit Risk	Delays in customer payments and receivables	Customer assessment and receivables monitoring
Cybersecurity Risk	Cyberattacks, data breaches and security incidents	Information security controls, security practices and continuous monitoring
Compliance Risk	Changes in laws, regulations and industry requirements	Compliance monitoring and periodic review
Market Risk	Competition, changing customer requirements and economic conditions	Market monitoring, diversification and strategic partnerships
Technology Risk	Rapid technological changes and obsolescence	Technology evaluation, partner engagement and capability development
Human Resource Risk	Talent acquisition, retention and skill requirements	Employee development, training and HR processes
Supply Chain / Vendor Risk	Vendor dependency, availability and pricing fluctuations	Vendor relationships, procurement planning and monitoring

The Company continues to review its risk environment and take appropriate measures based on the nature and materiality of identified risks.

13. RISKS AND CONCERNS

Competition Risk

The Company operates in a competitive market with the presence of established players and specialised technology service providers. Increased competition may exert pressure on pricing, customer acquisition and margins.

Technology Obsolescence Risk

Rapid technological advancement may result in obsolescence of products and technologies. The Company seeks to address this risk through continuous engagement with technology partners and development of newer service capabilities.

Supply Chain and Vendor Risk

Availability, pricing and delivery of hardware and technology products may be affected by supply-chain conditions, vendor policies and market fluctuations. The Company seeks to mitigate such risks through vendor relationships and appropriate procurement planning.

Customer and Credit Risk

The Companys business involves credit exposure to customers and delays in collection may affect working capital and liquidity. The Company monitors customer receivables and undertakes appropriate credit and collection measures.

Working Capital and Liquidity Risk

Growth in business volumes may increase working capital requirements. The Company continues to monitor cash flows, receivables and working capital requirements in line with its business activities.

Cybersecurity and Data Protection Risk

As the Company expands its cloud, cybersecurity and managed services offerings, protection of information systems and data remains an important operational consideration. The Company continues to strengthen its technology capabilities, information security processes and compliance framework.

Regulatory Risk

Changes in technology, cybersecurity, data protection and other applicable regulatory requirements may affect the Companys operations. The Company monitors applicable regulatory developments and seeks to maintain appropriate compliance mechanisms.

14. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems and procedures commensurate with the size, scale and nature of its operations. The internal control framework is designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, prevention and detection of fraud and errors, operational efficiency and compliance with applicable laws and regulations.

The Companys internal controls cover, among other areas, financial reporting, procurement, sales, inventory, receivables, payments, authorisation processes and operational activities. The adequacy and effectiveness of internal financial controls are reviewed periodically by the management and through the Companys internal audit mechanism. Significant observations, if any, are reviewed by the appropriate management and corrective measures are undertaken.

Based on the managements assessment and the reports available during the year, the internal control systems of the Company were considered adequate and operating effectively, commensurate with the size and nature of its operations.

15. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources remain an important component of the Companys growth strategy, particularly in view of its increasing focus on specialised technology and service offerings. As at 31 March 2026, the Company had 35 employees.

During the year, the Company implemented PeopleHR software with the objective of improving employee management, HR processes and administrative efficiency.

The Company continues to focus on employee capability development, strengthening technical and functional skills and fostering a work environment conducive to professional development and organisational growth. The Company maintains cordial and constructive relations with its employees and continues to focus on employee development, training and retention.

16. QUALITY, INFORMATION SECURITY AND PROCESS CAPABILITIES

During FY 2025 26, the Company continued to strengthen its quality, information security and process management capabilities.

The Company maintained/obtained the following certifications and assessments during the relevant period:

ISO 9001:2015 Quality Management System;

ISO 27001:2022 Information Security Management System, obtained on 24 November 2025;

ISO 10002:2024 Customer Satisfaction Management / Complaints Handling;

CMMI Level 5 Process Maturity Assessment Framework, obtained on 10 July 2025.

These certifications and assessments support the Companys focus on quality management, information security, customer satisfaction and process maturity.

17. FUTURE OUTLOOK AND BUSINESS STRATEGY

The Company remains cautiously optimistic about the medium- to long-term prospects of the IT infrastructure, cloud, cybersecurity and managed services markets. For FY 2026 27, the Company intends to focus on strengthening its existing business verticals while selectively developing new technology services and markets.

The Companys key focus areas include:

Expansion of cloud infrastructure and related services;

Development of cybersecurity and managed security services;

Opportunities arising from DPDP and related data protection requirements;

Expansion into BFSI and FinTech customer segments;

Strengthening managed services capabilities;

Expansion of the Companys presence in the Western and North-Eastern regions;

Development of strategic technology and service partnerships; and

Expansion of the associate partner and business development network.

The Company may undertake investments in technology, infrastructure, people and business development activities based on business requirements and available resources. The Company has considered a capital expenditure plan of approximately 5 crore for FY 2026 27, subject to business requirements, management evaluation, availability of resources and applicable approvals. The Company will continue to pursue growth opportunities while maintaining an appropriate focus on profitability, cash flows, working capital management and risk mitigation.

18. DEVELOPMENTS SUBSEQUENT TO THE FINANCIAL YEAR

Subsequent to 31 March 2026, the Company continued to strengthen its cybersecurity and data protection capabilities and explore opportunities arising from increasing demand for cybersecurity, data protection and technology compliance services. The Company obtained/achieved additional certifications and assessments subsequent to the financial year-end, including:

ISO 37001:2016 Anti-Bribery Management System, dated 30 April 2026;

SOC 2 Security and Compliance Attestation, dated 18 May 2026; and

GDPR-related compliance assessment/attestation, dated 18 May 2026.

These developments further support the Companys focus on corporate governance, information security, process maturity, data protection and compliance.

The Company continues to evaluate and develop opportunities in cybersecurity and DPDP-related services as part of its broader technology services strategy.

19. MANAGEMENTS ASSESSMENT OF FY 2025 26

FY 2025 26 was a year of business growth, improved profitability and capability development for the Company. Revenue from Operations increased by approximately 60.17%, from 3,650.59 lakh in FY 2024 25 to 5,847.26 lakh in FY 2025 26. The Company also recorded a significant improvement in profitability, with Profit Before Tax increasing from 12.16 lakh to 58.94 lakh and Profit After Tax improving from a loss of 5.70 lakh to a profit of 57.52 lakh.

The improvement in performance was supported by increased customer engagement, execution of IT infrastructure and technology orders, development of new business opportunities and expansion of the Companys technology and service capabilities.

The Company also made significant efforts towards strengthening its future growth platform through the AMD Centre of Excellence, Cloud Lab, cybersecurity initiatives, strategic partnerships, geographic expansion and development of new service capabilities.

Management recognises that expansion into new technology and service segments requires continued investment in people, technology, infrastructure and business development. Accordingly, the Company remains focused on achieving sustainable growth while maintaining prudent financial and operational management. Management believes that the Companys expanding technology portfolio, strategic partner ecosystem, growing presence in cloud and cybersecurity and focus on managed services and data protection provide a foundation for future growth.

20. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations.

These statements are based on certain assumptions and expectations of future events and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, market demand, competition, technology, regulatory requirements, customer behaviour, supply-chain conditions, availability of resources and other factors beyond the Companys control. The Company assumes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments, except as may be required under applicable laws and regulations.rs.

For and on behalf of Board of Directors of
3C IT Solutions & Telecoms (India) Limited
(Formerly known as 3C IT Solutions & Telecoms (India) Private Limited)

Sd/-	Sd/-
Authorized Signatory	Authorized Signatory
Name: Ranjit Kulladhaja Mayengbam	Name: Gangarani Devi Mayengbam
Designation: Chairman & Managing Director	Designation: Director & CFO
DIN: 06929013	DIN: 07093162
Address: Flat no. 302, Tiara-A, Palace Orchard Society,	Address: Flat no. 302, Tiara-A, Palace Orchard Society,
Undri, Pune, Maharashtra 411060	Undri, Pune, Maharashtra 411060.

Date: 07 th September, 2026
Place: Pune