Accel Ltd Management Discussions

Business Overview

Accel Limited, since its inception, has focused on building a business around customer services. Our reputation, built over the years as a reliable service provider of IT infrastructure, has helped us to embrace several challenging new opportunities, centered around our core competency of customer service. Over the last few years, we have been investing in building a robust business model around our Accel 2.0 vision. We have embraced new lines of services including Cloud Infrastructure, Cyber Security and Managed Services. In line with our vision of leadership through service, we provide customers with predictable outcomes when it comes to delivering value.

Our Businesses

? IT infrastructure Management services (IMS)

? System Integration Services (SI)

? Cyber Security Managed Services (CSMS)

? Warranty and Logistics Management Services (WLMS)

? Managed Print Services (MPS)

? Realty Services

? Media And VFX related services

The year gone by

The Indian IT industry continues to evolve and grow despite global economic uncertainties and a rapidly changing business environment. Accelerated technology adoption, digital transformation, artificial intelligence and an increasing emphasis on cybersecurity and sustainability are reshaping the way enterprises operate.

Financial Year 2025-26 was a year of consolidation and transition for the Company, marked by the completion of the amalgamation of Accel Media Ventures Limited with the Company pursuant to the NCLT order dated 10th March 2026.

Revenue from operations remained broadly stable, growing marginally over the previous year. Our focused business segments such as Banking, Finance and manufacturing continued to help us win new customers. Our niche business segments such as Cyber Security and Managed Print Services continue growing rapidly in India with the organizations focus on secured infrastructure. Our company is working vigorously to win new projects that shall improve profitability going forward.

Performance Review

The financial year 2025-26 witnessed broadly stable overall business performance, notwithstanding continued softness in the rental offtake at KINFRA IT SEZ, Trivandrum, on account of the slowdown in the software sector. As an India focused business entity, our IT services division has continued helping many organizations in their digital transformation journey and to improve productivity and efficiency. In the IT services business, we continued to add new customers for IMS, MPS and Cyber security services.

Performance Highlights of Financial year 2025-26

Revenue grew by 0.79% to reach Rs 164.33 crore. EBITDA declined by 2.13% to reach Rs 16.03 crore. Profits before tax declined to Rs 1.69 crore.

The profitability got impacted due to the adoption of new labor code towards the year end. The business teams relentlessly pursued new business opportunities. Over 70% of our revenues continue to be driven by annuity-based services business.

Various divisions performed well in terms of contributing to the increase in Revenue from operations.

IMS division turnover for the year is 66.79 crore compared to Rs. 64.06 crore in the previous year.

WLMS turnover for the year is 46.05 crore compared to Rs. 44.15 in the previous year.

MPS turnover for the year is 6.51 crore compared to Rs. 6.34 crore in the previous year.

Systems Integration turnover for the year is 1.86 crore and Cybersecurity turnover for the year is 3.72 crore. These two divisions, though performed below projections - have created a strong footing for future revenues. At the segment level, the IT Services segment recorded a turnover of Rs. 156.43 crore, broadly flat compared to Rs. 156.53 crore in the previous year, while the Realty segment recorded a turnover of Rs. 7.90 crore, an increase of 21.38% over Rs. 6.51 crore in the previous year.

FINANCIAL PERFORMANCE:

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time (SEBI LODR) the Company is required to give details of significant changes (change of 25% or more as compared to the previous financial year) in sector-specific key financial Operating Profit Margin (EBITDA).

EBITDA for the year worked out to Rs. 14.81 crore as against Rs. 18.17 crore in the previous year. PAT increased to Rs. 5.44 crore from Rs. 1.79 crores in the previous year.

Net Profit Margin (NPM):

The following have been identified by the Company as key financial ratios, which are tracked only at the consolidated level.

Key Financial Ratios:

Particulars	31st March 2026	31st March 2025
Debt service coverage Ratio	1.45	1.31
Current Ratio	0.84	0.93
Debt Equity Ratio	0.87	0.93
Operating Profit Margin	5.00%	7.33%
Net Profit Margin	3.31%	1.10%
Service Revenue to Total Revenue	81.70%	80.09%
Return on Net worth	7.99%	2.80%
Days Sales Outstanding (DSO in nos)	76.41	82.85

? Net Decrease in Employee cost benefit - (Rs. 0.24 crores).

? Decrease in Finance Costs- (Rs. 1.30 crores).

? Increase in Depreciation and amortization expense - Rs. 0.36 crores.

? Decrease in Provision for Doubtful Debts and advances - (Rs. 0.79 crores).

? Increase in Other expenses Rs.4.05 crores

Interest Coverage Ratio:

The finance costs have decreased to Rs. 6.53 crores during the current year compared to Rs. 7.83 crores during the previous year.

Rs. In crores

Current Assets	Amount
Trade receivable	29.81
Other financial assets	11.67
Other current assets	2.34
Inventory	6.89
Cash & Bank	3.69
Loans	0.07
Total	54.48

Rs. In crores

Current Liabilities	Amount
Borrowings	27.90
Trade payables	15.42
Other financial liabilities	3.38
Other current liabilities	17.32
Others	0.79
Total	64.82

Current ratio: 0.84

Risk Management:

Macro risks such as slow opening of the global market after the Covid 19 Pandemic, geo-political events in eastern Europe continue to challenge businesses around the world. At Accel Limited, we have a risk management system that identifies and monitors the key risks and its impact on the businesses. The uncertainty of these risks can substantially impact, or have the potential to affect the organizations strategy, business model or available resources. These material risks are evaluated against industry and the global landscape to ensure that relevant emerging and existing factors are considered. We have identified such potential risks and set up mitigation measures to reduce the impact. Besides, the Companys internal auditors regularly assess the adequacy of risk management strategies and report its findings to the Audit Committee and the Board of Directors.

Challenges:

Our Companys businesses evolved through the acquisition of Ensure Support services limited in June 2000, the integration and cultural transformation is an evolving process. The recent turbulence in the middle east, resulting in slow growth and high operational cost coupled with high cost associated with recruitment and induction of new manpower into the Company is posing major challenges.

Outlook:

We are witnessing a continuous shift to cloud and increased enterprise IT spending. The traditional IT infrastructure services business is seeing a declining trend with more opportunities in managed services, cloud infrastructure services and managed security services. We have modeled our business around new emerging opportunities and hence we are confident of growing our business without interruptions barring unforeseen circumstances.

Internal Control Systems:

The Company has an internal control system, commensurate with the size and nature of its operations, which has been designed to provide reasonable assurance of recording the transactions of its operations in all material aspects and providing reliable financial and operational information, complying with applicable laws, and safeguarding the assets of the Company.

The Company constantly reviews its processes and the systems to address the changing regulatory and business environments. The Company uses Microsoft Navision as its enterprise resource

planning system for recording accounting data and for management information purposes. The Company has also got an online Operation support software to take care all operations and has aligned the internal financial control system with the requirement of Companies Act, 2013 (the Act). The Company has a reputed audit firm carrying out the internal audit, based on a plan finalized in consultation with some of the major operational risks recognized and managed by the Company include:

The Internal Auditors directly report to the Audit Committee. The internal audit reports are submitted / presented in the Audit Committee and discussed. The Audit Committee also obtains the views of the internal and statutory auditors to ascertain the adequacy of internal control systems.

The statutory auditors have issued a report on internal control over financial reporting (as defined in Section 143 of the Act). The Company assessed the effectiveness of the internal control over financial reporting (in accordance with Regulation 17(8) of SEBI LODR) as of 31 March 2026. Based on its evaluation (in accordance with Section 177 of the Act and Regulation 18 of SEBI LODR), our Audit Committee has concluded that, as of 31 March 2026, our internal financial controls were adequate and operating effectively barring a few improvements.

Risk Mitigation:

Talent attrition is a major risk assessed by the Company. Many steps are taken to reduce the attrition including variable pay and incentives. The Company is also working with BOAT to recruit and train manpower on a constant basis. Salary review is being done annually, and every effort is being made to retain performing work force and to retain senior managers. We have started creating a buffer of resources to mitigate the manpower risk.

Spiraling overhead cost has been a matter of risk for the company as it services companies operating at multi locations- Periodical review is taken up to rationalize cost in line with profitability.

IT infrastructure and software used in the operations are critical for the Company. We have moved all our development servers and operations platform to cloud. We have segmented the network to prevent any cyber-attack on servers that effect on one segment to another. We have also taken up development of a new generation software to manage our critical operations and our ERP system to latest Navision Business Central We also have implemented adequate business continuity plans with adequate back-up and disaster recovery.

Future Outlook

The company is seeing better utilization for its real estate assets and intake of more annuity contract in past few months gives the hope that our business will do better in the coming year.

For and on behalf of the Board of Directors,

Sd/- N R PANICKER Chairman & Managing Director DIN: 00236198

Sd/- K NAGARAJAN Director DIN: 02172617

Place: Chennai Date: 11-08-2026