3i Infotech Ltd Management Discussions

Emerging markets and developing economies are likely to face greater near-term challenges arising from commodity price volatility, geopolitical tensions, softer external demand and currency-related pressures. Economies with a high dependence on imported food, fuel and raw materials remain particularly vulnerable to inflationary shocks and balance-of-payment stresses. Nevertheless, the medium-term outlook remains constructive, supported by easing supply-side constraints, the gradual realignment of global trade routes, and improving policy stability across key markets.

Against this macroeconomic backdrop, two key headwinds warrant close attention for technology services companies with significant exposure to the United States and the Middle East and North Africa (MEA) region. First, US tariff and immigration measures, while not directly affecting IT services exports, influenced enterprise discretionary spending through their effect on client industries, particularly in sectors like manufacturing, retail, and logistics. Second, ongoing geopolitical tensions in the Middle East continue to pose risks to business continuity, technology infrastructure, and project execution within the region. Consequently, FY2026 was characterised by a heightened focus on operational resilience, disciplined capital allocation, and selective growth investments. As a result, technology services providers increasingly prioritised disciplined client selection, margin protection, and outcome-led engagements.

Despite these challenges, global economic activity continues to be supported by sustained investments in technology and Artificial Intelligence (AI), which are driving improvements in automation, operational efficiency, and productivity across industries. Businesses are also strengthening supply chain through diversification strategies, reducing dependence on individual markets and enhancing their ability to withstand external disruptions. In addition, supportive financial conditions in select economies are expected to facilitate infrastructure development, digital transformation initiatives and encourage private-sector investment. The continued expansion of services trade, including tourism, finance, education, digital services and professional consulting, is further contributing to global economic growth and reinforcing the increasing importance of knowledge-based and technology-enabled sectors within the global economy.

Global IT spending is projected to surpass US$ 6.3 trillion by 2026, driven by continued investments in software, IT services, cloud infrastructure, and artificial intelligence (AI). AI remains a key growth catalyst, with the global AI market expected to expand from approximately US$ 1.5 trillion in 2025 to more than US$ 2 trillion in 2026, reflecting accelerating enterprise adoption and increasing deployment of AI-powered solutions across industries.

The rapid scaling of AI workloads has also fuelled significant investment in digital infrastructure. Global data centre spending increased by 42.4% in 2025, reaching US$ 475 billion, largely driven by demand for AI-optimised servers, high-performance computing capabilities and advanced storage solutions. At the same time, software spending rose to US$ 1.2 trillion in 2025, supported by sustained enterprise investment in cloud-based platforms, cybersecurity, automation, and intelligent applications. By 2026, more than 50% of enterprise applications are expected to incorporate AI capabilities, highlighting its increasing impact on productivity and innovation.

For 3i Infotech, this market expansion has created addressable opportunities across its key service lines and platform-led offerings:

Applications, Automation and Analytics (AAA) services are expected to benefit from increasing investments in application modernisation and AI-led transformation initiatives.

Infrastructure Services (IS) are well positioned to capitalise on growing demand for data centre modernisation, cloud adoption, and the management of hybrid and multi-cloud environments.

Business Process Services (BPS) are likely to gain from continued enterprise focus on cost optimisation, operational efficiency, and process automation, particularly across the BFSI, healthcare, and other regulated sectors.

In India, the technology services landscape is expected to benefit from the continued expansion of Global Capability Centres (GCCs), increasing cloud migration initiatives, sustained investments in digital public infrastructure, and the deeper integration of AI into enterprise platforms, workflows and decision-making processes.

Enterprises continued to invest in core system modernisation, cloud migration, cybersecurity, and embed automation across operations. AI, data modernisation, digital engineering, and intelligent platforms emerged as key spending areas driven by the need to improve productivity, accelerate decision-making, and enhance customer experience.

Cloud is evolving from a platform of storage and scalability to a foundational layer for AI-driven enterprises. Organisations are increasingly adopting hybrid and multi-cloud architectures that combine public cloud flexibility with on-premises control and edge-computing capabilities. This shift enables real-time decision-making, strengthens data governance, enhances operational resilience and reduces reliance on a single cloud provider. Blockchain is increasingly emerging as a trusted infrastructure that enhances transparency, security, and operational efficiency. Through smart contracts, tokenisation, and cryptographic verification, it enables greater traceability, reduces reliance on intermediaries and accelerates transactions across sectors such as banking, supply chains, real estate, and capital markets. As enterprises pursue more automated and digitally integrated operating models, blockchain is becoming an important enabler of trust and process integrity at scale.

The IT services industry is witnessing a shift from traditional transformation programmes to outcome-driven, platform-led, and AI-enabled engagements. Demand is expected to be supported by application modernisation, hybrid cloud adoption, cyber resilience, enterprise automation, and human-AI collaboration. While macroeconomic uncertainty, spending scrutiny, talent availability, cybersecurity risks and evolving regulatory requirements may influence decision-making, technology continues to remain a strategic priority for enterprises, supporting the sectors long-term growth prospects.

Regional Spotlight

North America - Digital Leadership

North America continues to be a key driver of the global digital economy. Valued at US$ 3,026.3 billion in 2025, the region accounted for 32.1% of the global IT market, underscoring its scale, technology maturity, and high levels of enterprise adoption. The market is projected to grow at a CAGR of 6.1% through 2030, supported by increasing investments in AI-driven IT automation, cloud transformation, cybersecurity, and next-generation digital infrastructure. The adoption of AI in business operations increased from 14.2% in 2024 to over 20.2% in 2025 across major economies, driving demand for AI-enabled platforms, infrastructure upgrades, and automation of routine IT functions. At the same time, continued investment in 5G networks is supporting hardware deployment, network modernisation, and large-scale infrastructure programmes.

As a result, the North American IT market is increasingly transitioning from digital experimentation to scaled deployment, with enterprises prioritising technologies that enhance productivity, strengthen resilience, and enable data-driven decision-making.

Asia Pacific - Accelerated Digital Growth

The Asia Pacific (APAC) region continues to be a major growth engine of the global digital economy. Valued at US$ 3,035.9 billion in 2025, APAC accounted for 32.2% of the global IT market, reflecting its scale, expanding enterprise landscape, and rapid pace of technology adoption. The market is projected to grow at a CAGR of 9.3% through 2030, outpacing most other regions.

Growth is being driven by continued investments in 4G and 5G infrastructure, AI-enabled automation, cloud migration, and cybersecurity. Enterprises across the region are increasingly adopting scalable and data-driven digital platforms to enhance operational efficiency and support business transformation. The APAC IT market is advancing towards intelligent, outcome-led digital transformation, with Forrester projecting regional technology spending to grow 9.3% in 2026, driven by software, services, communications equipment and technology outsourcing. AI remains a central growth catalyst, as IDC expects Asia/Pacific AI and GenAI spending to reach US$ 370 billion by 2029, growing fivefold as enterprises move from experimentation to scaled deployment. As a result, enterprises are prioritising automation, cloud, cybersecurity, and advanced data capabilities to improve agility, resilience and business outcomes.

Middle East - Transformation-led Expansion

The Middle East IT market continues to exhibit strong long-term growth potential, supported by sustained investments in digital infrastructure, cloud modernisation, and AI adoption. Valued at US$ 307.2 billion in 2025, the market is projected to expand at a CAGR of 13.9% through 2030, making it one of the fastest-growing technology markets globally. Government-led transformation initiatives across the Gulf Cooperation Council (GCC) remain key growth drivers. National digital strategies of Saudi Arabia, the UAE, and Egypt are accelerating investments in smart city infrastructure, sovereign AI capabilities, hyperscale data centres, and digital public services. These initiatives continue to create significant demand for IT services, systems integration, managed services, cloud solutions, and cybersecurity across both public and private sectors.

Growth continues to be underpinned by government-led digital investment programmes that prioritise technology infrastructure despite near-term geopolitical uncertainties. Initiatives such as Vision 2030 in Saudi Arabia, the UAEs digital transformation agenda, and Egypts New Administrative Capital project are accelerating the adoption of IoT, AI, edge computing, and integrated digital platforms across public-sector and urban environments. At the same time, investments in hyperscale data centres across Riyadh and Abu Dhabi are strengthening the regions digital infrastructure and supporting data sovereignty objectives. The fintech ecosystem is also expanding rapidly, driven by supportive progressive regulatory frameworks, embedded finance solutions, and growing adoption of digital payments and blockchain-enabled transactions.

As a result, the Middle Easts long-term digital transformation and infrastructure investment thesis remains strong, notwithstanding the near-term uncertainties arising from regional geopolitical developments.

However, ongoing geopolitical tensions in the Middle East continue to create near-term uncertainty for the regions technology outlook. Despite these challenges, cybersecurity, sovereign AI and critical digital infrastructure remain priority investment areas. For cloud providers and IT service providing companies, geopolitical developments have elevated the importance of operational resilience and risk management. For IT services providers operating the Middle East region, business continuity planning and diversified delivery infrastructure are increasingly critical in maintaining operational resilience.

India - Global Capability Hub

The India IT services market continues to demonstrate steady growth, supported by ongoing enterprise digital transformation, accelerating cloud adoption, and increasing demand for AI-led technology solutions. According to IMARC, the market reached US$ 42.7 billion in 2025 and is projected to grow to US$ 78.1 billion by 2034, registering a 6.9% CAGR during 2026-2034. The country continues to strengthen its position as a leading global technology services hub, supported by a deep talent pool, mature delivery capabilities, and extensive experience serving international enterprises. Indias role is increasingly evolving beyond traditional outsourcing towards higher-value technology services, including product engineering, data analytics, AI-enabled solutions, and enterprise transformation. At the same time, domestic demand is emerging as a significant growth driver. Enterprises are accelerating investments in cloud, data and cybersecurity application modernisation, and AI-led automation to enhance operational efficiency and business outcomes. Government initiatives, including digital public infrastructure programmes and the India AI Mission, are further strengthening the countrys digital ecosystem and innovation capabilities.

With increasing demand for multi-cloud solutions, automation, cybersecurity, AI, ML, and managed digital platforms, India is well positioned to serve as a strategic partner in both global and domestic digital transformation initiatives.

Indian IT Market - Key Drivers

Company Overview

Founded in 1993 and headquartered in Navi Mumbai, India, 3i Infotech Limited (3i Infotech or The Company) is a global information technology services and solutions provider. The Company partners with enterprises in their digital transformation and modernisation journeys, delivering technology-led solutions that drive agility, efficiency, and measurable business outcomes.

3i Infotech serves clients across Banking, Financial Services and Insurance (BFSI), healthcare, manufacturing, retail, education, the public sector and other industries through an integrated portfolio of Application, Automation & Analytics (AAA), Infrastructure Services (IS), Business Process Services (BPS), and AI, ML, Blockchain and other new age technology solutions. Supported by a diversified global client base and a workforce of approximately 3,700 professionals, the Company continues to strengthen long-standing customer relationships through innovation, operational excellence and technology-driven transformation.

Building on this stronger foundation, the Company is now entering the next phase of its transformation through Vision 2030, a long-term strategy designed to accelerate innovation, deepen customer value, expand higher-value offerings and create sustainable value for all stakeholders.

Vision 2030 represents 3i Infotechs ambition to become a globally recognised AI-first, platform-led technology partner delivering intelligent, outcome-driven digital transformation. By combining deep domain expertise with Artificial Intelligence, cloud, cybersecurity, automation and proprietary NuRe™ platforms, the Company is creating differentiated capabilities that help enterprises modernise, optimise operations and accelerate innovation.

Guided by its capability-led Centre of Excellence (CoE) model, strategic technology partnerships and disciplined execution, the Company seeks to accelerate profitable growth, enhance operational efficiency, strengthen its presence across North America, India and the Middle East, and create sustainable long-term value for customers, employees and shareholders.

Executing Vision 2030 through Integrated Services and Platforms

The execution of Vision 2030 is driven by an integrated portfolio of technology services, proprietary platforms and AI-enabled capabilities, designed to help enterprises modernise, optimise and transform their businesses.

The Companys portfolio is organised around three core business segments, Applications, Automation & Analytics (AAA), Infrastructure Services (IS), and Business Process Services (BPS), complemented by the NuRe™ suite of platforms and IP-led solutions. Within each business segment, specialised Centres of Excellence (CoEs) serve as the Companys capability-led delivery model, bringing together deep domain expertise, standardised methodologies, reusable accelerators and strategic technology partnerships. These capabilities are further strengthened by enterprise-wide AI and Information Security CoE, which enable intelligent automation, data-driven decision-making and a robust security framework for trusted, resilient digital transformation. This integrated operating model enhances delivery excellence, accelerates time-to-value, strengthens customer outcomes and positions 3i Infotech for scalable, sustainable growth under Vision 2030.

The AAA business unit delivers application development and modernisation, application maintenance and support, digital quality engineering and test automation, intelligent process automation, data engineering, DataOps, governance, business intelligence, and analytics solutions to support enterprise transformation and operational excellence.

Data & Analytics

The Data & Analytics services enable enterprises to transform data into a trusted, governed, and AI-ready strategic asset. By leveraging modern data platforms, cloud data engineering, data governance, business intelligence, advanced analytics, and AI, this helps organisations derive actionable insights from structured and unstructured data. It builds secure, scalable, and intelligent data ecosystems that improve decision-making, enhance operational efficiency, accelerate AI adoption, and drive sustainable business growth.

This business segment delivers IT infrastructure managed services, hybrid IT, cloud management, end-user services, data centre and network management, observability, and integrated cybersecurity solutions. These services are delivered through 3i Infotechs Global Command Centre, supported by round-the-clock operations, ITIL-aligned processes, and SLA-driven services to ensure reliability, performance and business continuity.

The segment provides voice and non-voice customer experience services, registrar and transfer agent services, digital sales and collections support, back-office operations, and automation-led digital processes. These services help clients enhance operational efficiency, optimise costs, and improve customer experience.

RTA Next

The Companys Registrar and Transfer Agent (RTA) business delivers end-to-end registry and investor servicing solutions for listed and unlisted equity, debentures, commercial papers, and security receipts. Powered by its RTA Next platform, the business enables efficient record management, seamless transaction processing, regulatory compliance, corporate action management, and comprehensive investor servicing, helping issuers strengthen operational efficiency, governance, and stakeholder confidence.

As a part of its long-term strategy to build differentiated digital capabilities and remain at the forefront of technology-led transformation and in addition to the business-focused Centres of Excellence embedded within AAA, Infrastructure Services and BPS, the Company has established enterprise-wide Centres of Excellence that provide strategic capabilities across all business units and corporate functions. These CoEs drive innovation, strengthen governance, enhance cyber resilience and accelerate the adoption of emerging technologies, enabling the delivery of secure, intelligent and scalable solutions across the enterprise.

The CoE serves as a strategic horizontal capability, bringing together expertise across Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Intelligent Automation, Generative AI, Data Engineering and other emerging technologies to accelerate innovation across the organisation.

By creating reusable intellectual assets, standardised AI models and industry-specific accelerators, the CoE reduces implementation timelines, enhances delivery quality, improves productivity and enables scalable growth. It also fosters a culture of innovation through capability building, cross-functional collaboration and proof-of-concept initiatives, ensuring the structured and commercially viable adoption of emerging technologies.

Going forward, the CoE will continue to strengthen AI-enabled, domain-led and platform-centric offerings, expand strategic technology partnerships and accelerate innovation across industry verticals, reinforcing the Companys commitment to delivering intelligent, secure, scalable and future-ready digital transformation solutions.

The Information Security CoE establishes the enterprise security strategy, governance framework and best practices that safeguard the Companys digital ecosystem while supporting secure service delivery across all business segments. The CoE drives security architecture, risk management, regulatory compliance, cyber resilience, security operations and secure-by-design principles, while enabling customer-facing cybersecurity services through standardised frameworks, advanced security capabilities and continuous monitoring to protect critical business operations and digital assets.

Going forward, the Innovation (AI/ML) and Information Security CoEs will play a pivotal role in advancing the Companys strategy of building domain-led, AI-enabled and platform-centric offerings. Through continued investments in AI-led engineering, Generative AI, intelligent automation, data-driven platforms and secure-by-design capabilities, the Company will strengthen strategic technology partnerships, expand its portfolio of reusable digital assets and accelerate innovation across industry verticals. Together, these enterprise-wide capabilities will enable intelligent, secure and future-ready digital transformation while creating sustainable long-term value for customers, employees and shareholders.

Complementing its capability-led service portfolio, 3i Infotech has developed a suite of proprietary platforms and IP-led solutions under the NuRe™ umbrella. These platforms extend the Companys transformation capabilities beyond traditional services by combining domain expertise, automation, data intelligence and configurable workflows to address industry-specific business challenges.

Designed with a cloud-first, AI-enabled and modular architecture, the NuRe™ portfolio empowers enterprises to accelerate digital adoption, improve operational efficiency, strengthen governance and compliance, and deliver measurable business outcomes. Together with the Companys Centres of Excellence, these platforms reinforce 3i Infotechs strategy of delivering differentiated, scalable and outcome-driven solutions while creating long-term value for customers.

NuRe EnGRC

Governance, Risk and Compliance with Modern Document Management System (DMS)

Integrates risk management, compliance, and ESG goals in enterprise operations Enables focus on high-value activities through a collaboration module and an integrated DMS replace spreadsheets and manual processes Complete Modular Approach Strong Document Management (DMS) capability as an independent module that facilitates modern workflow management, document summary, meta and content search

NuRe Flexib+

Digital-First Quality Engineering and Test Automation

Enables test automation across functional and nonfunctional requirements throughout the software development lifecycle Supports test scheduling, repeatable test execution, and accelerated quality validation Helps enterprises test early and test repeatedly to reduce release risk and time to market

NuRe Campus

Cloud-Based Enterprise Automation System for Higher Education Institutions

Automates end-to-end operations for higher education institutions, including admissions management, academic governance, compliance and reporting, and examinations and assessments Enables data-driven decision making, improves institutional performance, and promotes operational transparency and inclusivity Supports inclusive, transparent and data-rich campus management across student lifecycle, faculty governance, and institutional compliance, enabled by real-time dashboards and configurable workflows that reduce manual intervention and improving institutional accountability

NuRe™ Flowbit

Unified Sales CRM and Pipeline Management Platform

Unified sales CRM platform designed to strengthen pipeline visibility and sales governance Enables end-to-end management of leads, opportunities, and customer engagement activities Provides real-time insights to support data-driven decision-making and performance tracking

Strategic Impact

Through its diverse range of digital services and proprietary solutions, 3i Infotech enables clients to:

Adopt advanced technologies Automate enterprise processes

Scale digital operations and strengthen resilience Improve customer and business outcomes

This impact spans Application, Automation and Analytics, Infrastructure Services, Business Process Services and innovation-led products including EnGRC and NuRe Campus supported by Innovation Centre of Excellence - our AI led COE working across businesses and product lines, positioning the Company as a trusted transformation partner across industries and geographies.

Strategic Shift towards Capability-led Growth

FY 2025-26 marked a significant milestone in 3i Infotechs transformation with the formalisation of its Centre of Excellence (CoE) operating model. More than an organisational initiative, the CoE framework represents a strategic shift towards capability-led growth, embedding specialised expertise, AI-led innovation, standardised delivery, and reusable assets across the Companys core businesses.

3i Infotechs competitive differentiation is anchored in three strategic strengths. First, its integrated services model brings together Application, Automation, Analytics (AAA), Infrastructure Services (IS), and Business Process Services (BPS), enabling enterprises to execute end-to-end transformation through a unified delivery framework that reduces complexity and improves execution. This enables faster solution development, greater delivery consistency, and improved scalability while strengthening collaboration across sales, pre-sales, delivery, and product teams.

The second is the CoE framework, which provides a scalable engine for capability-led growth. Structured across business units and enterprise functions, the framework integrates domain expertise, technology partnerships, delivery frameworks, and proprietary platforms into a unified operating model. During the year, the Company strengthened specialised talent, institutionalised governance, developed reusable accelerators, and embedded AI, automation, cloud, cybersecurity, and observability capabilities across its service lines.

This has accelerated the transition from project-centric execution to solution-led, platform-enabled delivery, where standardised methodologies, automation, and reusable intellectual property enhance execution quality, scalability, operational efficiency, and speed-to-market.

As the CoE framework continues to mature, it is expected to play a central role in advancing Vision 2030 by strengthening differentiation, accelerating innovation, expanding higher-value offerings, and supporting sustainable, profitable growth.

Third, its proprietary platforms, including NuRe™ Campus, NuRe™ Flexib+, and NuRe™ EnGRC, combine software IP with services delivery, creating differentiated, outcome-oriented solutions, strengthening pricing power and enhancing the Companys competitive positioning. Its Global Command Centre, operating 24x7 across NOC, SOC, and infrastructure management, represents a capital-intensive capability that mid-market competitors cannot easily replicate.

Strategic Foundations and Profitability Momentum

FY 2025-26 marked the Companys transition from strategic repositioning to disciplined execution and initial scaling. Following portfolio rationalisation in FY 2024-25, the Company focused on strengthening scalable and higher-quality revenue streams, enhancing delivery capabilities and deepening client relationships across sectors. The AAA business recorded a significant improvement in resource utilisation, increasing from 83% to 94%, while direct delivery costs declined, reflecting improved operational efficiency and a stronger engagement mix.

The Company also continued to optimise its portfolio by selectively exiting low-margin legacy engagements and prioritising opportunities with stronger commercial potential. Within Business Process Services, evolving regulatory requirements in the BFSI sector resulted in more rigorous vendor evaluation by clients. In response, the Company strengthened its governance, data security, and compliance frameworks while repositioning the business towards AI-assisted customer support, speech analytics, workflow automation, and digital operations. These initiatives will support the development of a scalable human-plus-AI delivery model and will enhance the segments long-term growth potential.

The CoE-led approach was initiated during the second half of FY 2025-26 to strengthen solution standardisation, accelerate AI adoption, and improve delivery quality over time. These initiatives are expected to support outcome-led transformation as execution scales in FY 2026-27.

Supported by disciplined working capital management, lower voluntary attrition, and enhanced leadership capabilities, the Company strengthened its operational foundation and advanced its readiness for sustained profitability and long-term growth under Vision 2030.

Talent, Technology, and Partnerships

As technology priorities and client expectations continue to evolve, 3i Infotech has aligned its talent strategy to build future-ready capabilities across key growth areas. The Company continued to invest in upskilling and capability development in Artificial Intelligence (AI), Machine Learning (ML), cybersecurity, cloud, data analytics and emerging digital technologies, ensuring its workforce remains equipped to support next-generation delivery models and evolving client needs.

This was supported by structured hiring, continuous learning frameworks, certifications and leadership development initiatives, strengthening the organisations ability to support evolving customer requirements.

At the same time, the Company expanded its investment in technology platforms, Centres of Excellence (CoEs), reusable assets, accelerators and solution frameworks. These initiatives are enhancing delivery consistency, improving efficiency and accelerating time to value for customers.

Acting as a trusted orchestrator, 3i Infotech integrates the right mix of technologies, platforms and domain capabilities to address complex business challenges and deliver measurable outcomes. By combining global innovation with local execution strength, the Company ensures solutions that are scalable, relevant and cost-effective, while remaining aligned to regional business priorities.

Together, talent, technology and platforms are enabling 3i Infotech to unlock new possibilities for customers, employees and partners, while building a scalable foundation for future growth.

Driving Value through Innovation

3i Infotechs profitability improvement reflects focused strategic execution, supported by operating discipline, portfolio optimisation and establishment of a CoE-led operating model. Technology enablers such as HyperOps, NuRe Flexib+, and Power BI together with modern DevOps practices, proprietary IP, SAP capabilities, and strategic partnerships are expected to enhance automation, strengthen decision-making, improve delivery efficiency and support long-term competitiveness.

The BPS segment navigated a dynamic operating environment during FY 2025-26, characterised by evolving regulations and client portfolio rationalisation. In response, the business continued its transition towards digital operations, AI-assisted customer support, speech analytics and workflow automation. This repositioning supports a human-plus-AI operating model aligned with the growing enterprise focus on digitally enabled, outcome-driven operations.

As AI becomes increasingly embedded across business processes, value creation is expected to be driven not only by scale, but also by deeper insights, faster execution, greater agility and measurable business outcomes.

Looking ahead, the Company remains focused on building a more scalable operating model, deepening its domain and technology expertise, and strengthening its outcome-driven approach to client delivery.

Industry Outlook and Growth Opportunities

Global IT spending is projected to exceed US$ 6.3 trillion by 2026, driven by continued investments in software, IT services, AI infrastructure, cloud computing and digital transformation initiatives. Enterprises are increasingly prioritising data and application modernisation, AI adoption, core system upgrades, cybersecurity, automation, and AI adoption to enhance agility, resilience and operational efficiency. In India, expanding digital infrastructure, data centre investments, AI adoption, connectivity, IoT, and edge computing are creating additional opportunities across the technology ecosystem.

Against this favourable industry backdrop, 3i Infotech is well positioned to capitalise on the growing demand for outcome-driven digital transformation. Leveraging its integrated services portfolio, proprietary NuRe™ platforms, AI-enabled capabilities and deep domain expertise, the Company helps enterprises modernise applications, optimise infrastructure, transform business processes and strengthen operational resilience. As enterprise technology investments increasingly focus on measurable business outcomes, 3i Infotechs capability-led operating model, strategic technology partnerships and platform-driven solutions position it to deliver scalable, future-ready transformation while supporting sustainable long-term growth.

Potential Threats

Macroeconomic uncertainty, inflationary pressures, and geopolitical developments may continue to influence enterprise technology spending and investment priorities Clients are exercising greater caution in approving transformation programmes, with increased emphasis on measurable ROI, business outcomes, and near-term value realisation Technology spending remains active but selective, with budgets increasingly directed towards productivity enhancement, automation, cybersecurity and cost optimisation initiatives

Changes in outsourcing regulations, data privacy, and operational risk frameworks may affect business models and engagement structures, particularly in regulated sectors Vendor governance requirements, contract reviews, and vendor rotation policies in certain industries may influence contract continuity irrespective of service delivery performance Legacy regulatory matters may require ongoing management attention due to historical process gaps, documentation limitations and evolving compliance expectations

Legacy tax matters, contractual disputes, and ongoing litigations may create financial and operational uncertainty for the Company Adverse outcomes in material disputes or claims could impact profitability, liquidity, cash flows and stakeholder confidence The Company continues to pursue the resolution of legacy exposures through appropriate legal, regulatory, and settlement mechanisms

The successful execution of strategic initiatives depends on effective implementation, operational alignment, and market adoption Dependence on key leadership personnel and specialised talent may create continuity risks in the event of attrition or unforeseen departures Cybersecurity incidents, data breaches, technology disruptions, or system failures could adversely affect service delivery, business operations and client trust Current profitability levels and the Companys capital structure may limit flexibility with respect to near-term shareholder distributions

Consolidated Financial Highlights

During the financial year ended March 31, 2026, 3i Infotech delivered a resilient performance, reflecting its continued focus on operational discipline, revenue quality, and business realignment. The Company recorded total income of 783.68 Crores in FY 2025-26, compared with 751.80 Crores in FY 2024-25.

Operating performance improved during the year, with the Company reporting positive EBITDA of 68.91 Crores in

FY 2025-26. The improvement was driven by cost optimisation initiatives, a stronger contribution from higher margin engagements, improved resource utilisation, and the planned rationalisation of legacy and underperforming businesses.

The Company also reported Profit Before Tax (PBT) of 45.14 Crores for FY 2025-26, reflecting the benefits of a sharper portfolio focus, increased operational efficiency, disciplined pricing, and continued emphasis on scalable and outcome-driven revenue streams. The financial performance highlights for the year are summarised below:

Risk Management and Governance

Effective risk management remains integral to 3i Infotechs approach to safeguarding business continuity, supporting sustainable growth, and enhancing stakeholder value. The Company has established a comprehensive Risk Management Framework to identify, assess, mitigate, monitor and manage risks that could affect its strategic objectives, operational performance or reputation.

The Boards Risk Management Committee provides oversight of the Companys risk management practices. The Committee reviews the evolving risk landscape, evaluates key risk exposures and guides the development of appropriate mitigation measures in alignment with the Companys strategic priorities, risk appetite and regulatory obligations.

The Risk Management Framework is aligned with applicable regulatory requirements and industry best practices, and is reviewed periodically to address emerging risks and changing business conditions. The Company continues to foster a proactive risk management culture, integrating risk awareness into business planning, and day-to-day operations to strengthen organisational resilience and support long-term value creation.

Internal Control Systems and their Adequacy

3i Infotech maintains an adequate system of internal controls designed to safeguard assets, to ensure the accuracy and reliability of financial reporting, to support operational efficiency and to ensure compliance with regulations and internal policies. The Companys internal control framework is aligned with the requirements of Companies Act, 2013 and is commensurate with the nature, scale and complexity of its operations.

The internal control environment encompasses financial controls, operational processes, information technology systems, compliance mechanisms, and risk management practices. These controls are designed to provide reasonable assurance regarding the effectiveness of operations, the reliability of financial information, the safeguarding of assets, and adherence to statutory and regulatory requirements.

The Company has an independent internal audit function that conducts periodic reviews of key processes and controls. Internal audit findings and recommendations are reviewed by management and presented to the Audit Committee, which oversees the adequacy and effectiveness of the internal control framework. Corrective actions, if and where required, are implemented in a timely manner.

The internal control framework is reviewed and strengthened on an ongoing basis to address evolving business requirements, regulatory developments, and emerging risks. Through this structured approach, the Company continues to reinforce governance standards, operational discipline, and stakeholder confidence.

Strengthening Cyber Resilience

Subsequent to the year, in FY 2026-27 beginning, 3i Infotech activated its established cyber incident response framework following a cybersecurity event. Working in collaboration with an external CERT-In-empanelled forensic auditor, the Company implemented comprehensive containment, forensic investigation, and recovery measures in line with its incident response protocols.

Affected systems were promptly isolated, identified security risks were remediated, and critical operations were restored within a short timeframe. The Company also fulfilled all applicable regulatory reporting requirements with the relevant authorities and stakeholders.

Building on the learnings from the incident, 3i Infotech further strengthened its cybersecurity posture through enhanced security monitoring, SIEM optimisation, geo-fencing, dual-layer endpoint protection, and continued investments in network redesign, segmentation, and security controls. These initiatives reinforce the Companys commitment to cyber resilience, operational continuity, and the protection of client and enterprise information assets.

Global Geopolitical Developments

Middle East & Africa (MEA), Asia-Pacific (APAC), and Thailand, may influence the Companys operating environment. Evolving immigration and visa policies in the United States could affect onsite deployment, workforce mobility, project staffing, and delivery costs. In addition, ongoing geopolitical tensions and conflicts in West Asia and the Middle East may impact client investment decisions, business confidence, employee mobility and safety, travel, and the continuity of regional operations. These evolving dynamics underscore the importance of a diversified global delivery model, localised talent strategy, resilient technology infrastructure, and robust business continuity and risk management frameworks.

People and Culture

3i Infotechs people strategy in FY 2025-26 focused on strengthening organisational capability while aligning its workforce with the Companys evolving business priorities. Key areas of focus included consolidating the talent base following portfolio rationalisation and building future-ready, capability in AI, cloud, SAP, cybersecurity, analytics and next-generation capability-based delivery model.

As of March 31, 2026, the Company employed around 3,700 professionals. The reduction from the previous year reflects the rationalisation of legacy and non-core business lines as part of the Companys strategic transformation programme.

During the year, workforce productivity was enhanced through improved utilisation, greater offshore leverage, and the increased adoption of automation-led processes, supporting operational efficiency while maintaining service quality. Voluntary attrition declined during FY 2025-26, supported by the proposed revamped ESOP structures and expanded learning and development programmes. The revival of the Management Trainee programme further strengthened the campus talent pipeline and contributed to the development of future-ready skills.

The Company continued to strengthen leadership, technical, and sales capabilities through structured development programmes, digital and cloud technology certifications, and enhanced consultative selling initiatives.

Employee engagement remains a key focus area and is assessed through periodic surveys, pulse checks, and structured feedback mechanisms. Insights from these initiatives are translated into targeted action plans across teams and functions, supported by leadership accountability and continuous improvement.

Diversity, equity and inclusion continue to be integral to the Companys talent strategy. The Company promotes inclusive hiring practices and supports professionals returning after career transition opportunities, reinforcing its commitment to building a diverse and inclusive workplace.

Employee well-being is supported through a range of initiatives including learning and development programmes, skill enhancement workshops, wellness awareness campaigns, and flexible work practices. Together, these initiatives contribute to a safe, healthy, and supportive work environment.

Through its Campus-to-Corporate initiative, the Company partners with educational institutions across non-urban regions to expand access to employment opportunities and strengthen the future talent pipeline. The programme supports the development of a more diverse workforce while helping bridge the gap between emerging talent and industry requirements.

With a presence across multiple geographies, the Company continues to foster a diverse and multicultural workforce. Its focus on talent, employee engagement and inclusive workplace practices supports organisational resilience, long-term growth ambitions in an ever-evolving global marketplace.

Cautionary Statement

This Management Discussion and Analysis contains certain forward-looking statements relating to the Companys objectives, expectations, projections and future business prospects. These statements are based on managements current assumptions, estimates, and expectations and are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.

Important factors that may influence actual outcomes include changes in economic conditions, industry trends, market demand, competitive intensity, pricing dynamics, technological developments, regulatory and policy changes, tax laws, geopolitical events, with other factors beyond the Companys control.

Readers are therefore cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.