Accelya Solutions India Ltd Management Discussions

INDUSTRY OUTLOOK:

Global air passenger traffic continued its growth, up 6-7% compared to 2024. The forecast for passenger RPK growth is expected to be around 5-8%. For full Year 2024 and early 2025, International traffic has been growing 12%+ and Domestic traffic, while lower, has also grown by 5%+. Indias domestic aviation industry is experiencing rapid growth and is now worlds third-largest domestic aviation market. Overall growth is expected to carry into FY25, subject to market conditions and geographic political tensions geffing resolved.

Asia-Pacific and Europe led global passenger traffic growth, contributing over 74% of the annual increase in revenue passenger kilometers (RPK). This was mainly due to a surge in international travel in both regions and the rapid recovery of large domestic markets in Asia-Pacific.

Despite ongoing production delays and a massive backlog, FY 25 sees significant aircraft purchasing-driven by both major expansion and replacement needs. Emerging markets (e.g. India, Southeast Asia) are fuelling demand for narrow- body capacity, while established carriers (especially in Asia and the Gulf) focus on widebody fleet renewal and long-haul/ sustainability goals. However, with replacements lagging due to limited delivery pace, airlines are forced to operate older aircraft longer.

NDC adoption made strong leaps in 2024, especially in corporate bookings, which powered over half the global volume. In 2025, adoption continues to grow—over two-thirds of airlines have implemented NDC—butfull migration to advanced retailing models (Offer & Order) remains limited (~27%). Progress is most visible within leisure/OTA channels, with corporate and indirect channels gradually catching up, especially across Asia-Pacific markets. Passengers now started using their choices of purchasing seats, meals, lounge access, and travel upgrades throughout their journey. These ancillaries have gradually added to airlines1 bottom lines. Accelya group continues to be a global leader in this space with 53.3% ofglobal NDC transactions volume for 2024.

One Order standards to streamline the issuance of ancillaries using a single document instead of multiple tickets and EMDs, as is currently the case, are geffing evolved to handle complex scenarios like disruptions and interline settlements. Airlines have now started exploring this area with some airlines releasing RFI to understand current market capabilities. Moving to the world of Retailing using Orders is the next big step within the airline industry, allowing airlines to modernize their entire commercial and settlement platforms.

The Companys development roadmap for Order Accounting solution is on track and in line with the industry adoption. Order Accounting platform aims to provide settlement solutions across all airline business models i.e. Full Service, LCC and Hybrids. Its also designed to be backwards compatible with existing industry standards by leveraging capabilities of existing PRA platform.

The Companys Strategic Product Governance (SPG) group formulated combing airline and business experts within the company, continues to provide direction to the overall product development. This year a new board was elected with the support of customers and will now take on the leadership role in steering product roadmaps.

The Company has started adopting Artificial Intelligence and Machine Learning (AI/ML) within its entire production cycle. These are early stages of the initiative and will achieve significant momentum in the coming years.

ACCELYA GROUPS STRATEGY:

Accelya groups financial services have established themselves as an integral part of the airline decision-making process by providing timely and granular information. The emphasis on traceability and auditability has helped our solutions cement their place within the airline ecosystem.

Accelya group has established itself as the market leader in the NDC space, with over 50% of transactions currently using the Company platform. To maintain this leadership, Accelya group has been investing in new and improved capabilities like Dynamic Pricing and Bundling, as well as building a strong foundation for One Order. Accelya groups platform will offer capabilities for Offer, Order, and Settle, enabling customers to launch new products and seamlessly settle and account for them. With the One Order focus, Accelya group is poised to drive technology transformation within the airline industry, which is embracing new ways of retailing and distribution.

Accelya groups Product Integration (API) project has entered the next phase of proof of concept (POC) after establishing basic connectivity and ensuring controlled flow of Orders from Offer to Settlement.

Our focus is to balance long-term objectives with short-term goals to create a robust foundation for future growth while staying resilient in an ever-evolving business environment. We continue to evolve our products and services to maintain our leadership position in the airline commercial and financial platform domain.

ACCELYA SOLUTIONS MAJOR OFFERINGS:

Revenue Accounting

Revenue accounting is a complex business process in an airline, responsible for accurate and timely revenue declaration, ensuring correct interline payments, and adherence to IFRS and audit compliances. Crucial strategic decisions are made using revenue accounting data in an airline.

With over 30 years of experience and a leadership position in revenue accounting, The Company enables leading global airlines to streamline and simplify their revenue accounting processes. The Company continues to work with airlines in addressing business challenges, such as NDC and Orders facilitating a seamless transition to the new retailing world.

Revenue Assurance

The Revenue Assurance Services portfolio covers a wide range of audit services spanning the entire ticket lifecycle, from original booking to the completion of the journey. This is supported by comprehensive recovery services, including the raising of Agent Debit Memos (ADMs) to fund collection.

Cost Management

The Companys Cost Management Solutions enable airlines to manage their costs more effectively. It automates the payables process, provides deeper insights into costs, and facilitates wiser, more profitable decisions every day. As a result, airlines can control supplier overpayments and transform their procure-to-pay cycle.

Industry Partnerships

ATPCO

The Company continues to provide NFP (Neutral Fare Proration) under ATPCOs RASS (Revenue Accounting Settlement Services) powered by industry recognized APEX? Proration Engine.

IATA

As an IATA Strategic Partner, the Company is involved in various engagements. These include,

• Revenue Accounting

• NDC&OneOrder

• SISDevelopment&Support

ACCELYA SOLUTIONSUPDATES Revenue Accounting

• The efforts to upgrade customers to the latest version and standardizing platform is paying off with just a few

airlines left in the final stages of implementation. The focus for the flagship offering of Revenue Accounting this

year continues to be improve overall application stability, ensure compliance with industry regulations, and support airlines execute their own business strategy be it change in PSS, ERP or embarking on new Joint Ventures.

• The Companys proration engine has been enhanced to handle joint ventures and improve overall automation levels. •

• The Company has started using artificial intelligence and machine learning to improve development and product quality.

Order Accounting

• The Order Accounting platform, based on lATAs One Order standards, has now completed its MVP phase and has been demonstrated to customers during the companys Financial Summit in Madrid and one on one to individual customers and prospects.

• The platform is developed in line with the 21.3 standards to handle financial functions such as Order to Cash, Procure to Pay, Settlement, Accounting, and Reconciliation.

• The next stage for the platform is to begin proof of concept (POC) with existing customers and work with prospective customers.

Accelya Managed Services

• The volume has recovered for most AMS customers, with many experiencing year-on-year growth.

• The Company continues to deliver its processing services at high levels of SLA and consistently meets both internal and external audit requirements.

• Refund volumes have now stabilized and are in line with the previous years volume.

Cost Management

• The Company continues to maintain Miscellaneous Billing capabilities for its customers as this part of the business is still aligned with the overall Revenue Accounting and Settlement standards.

ACCELYA SOLUTIONS STRENGTHS AND OPPORTUNITIES:

Business Focus, Expertise and Continuous Investment in Products and Services

The Company continues to hold a significant advantage due to its extensive business domain knowledge and adaptability to emerging industry changes. Years of experience have endowed the Company with a robust base of Intellectual Property and Intellectual Capital.

Customers regularly engage with the Company to enhance services and strengthen bilateral relationships. Airlines continue to execute their business strategies, including mergers and joint ventures.

The Company continues its investment in Order Accounting platform to meet the anticipated demand from airlines transitioning to Modern Retailing and Orders world in the future.

Readyforthe Evolving Airline Distribution Landscape

The Company is well-aligned with upcoming industry changes related to lATAs Modern Retailing initiatives. In conjunction with Accelya US Inc, we announced FLX One platform that combines OOSD (Offer, Order, Settle and Deliver) as the new airline platform that spans the entire lifecycle from offer to settlement.

Accelya FLX One offers:

• Future-ready architecture: Fully cloud-native, scalable on AWS, API-first design enables airlines to modernize retail capabilities at their own pace

• Unified Offer-to-Settle architecture: Single platform supporting commerce and settlement built around Customer / Passenger centricity

• Proven scale and economics: With tens of billions of offers and precise Al-driven decisioning, FLXONE balances revenue optimization, personalization, process automation, and operational visibility across channels.

Customers have begun engaging with Order Accounting, and there are already a few early adopters with RFIs in the market seeking to understand and collaborate with the Company on these initiatives.

Neutral Service Provider

Accelya Solutions is a neutral service provider, independent of any competing airlines. Its platforms and processes operate independently of any airlines strategic roadmap.

The Company maintains this impartial position in the market and continues to provide fair and neutral services to all its customers.

Data Protection

The Company takes data privacy very seriously and has relevant controls and compliances in place including PCI DSS 3.2 and ISO 27001: 2015. All of the Companys products and services meet the new privacy standards as per the EU General Data Protection Regulation (GDPR) regulations.

Confidentiality and security of customer data are of utmost importance to the Company and the Company is constantly investing in areas that enhance security and compliance.

Single Vendor Accountability

Accelya Solutions has pioneered the concept of platform-based outsourcing in the airline industry. The Company takes complete accountability for the outcome as per the Service Level Agreements (SLAs). It also takes the responsibility for maintaining and upgrading the platform, processes and people skills in line with industry best practices and client requirements.

The Company continues to maintain its high standards of SLA compliance and provides continuous support to its customers to meet their business goals as well as their internal and external audit requirements.

Relationship with Customers

The Company values long-term relationships with its customers, leveraging its strength in forging effective and enduring partnerships with large, global airlines. These relationships continue to strengthen and evolve into robust partnerships. Customers rely on the Company as they develop their own business strategies, and the Company provides essential supportthrough its platforms and services.

The Company is also offering ongoing guidance and support as customers embark on their journey toward modern retailing. This initiative will significantly transform airline operations and passenger services, moving away from the legacy systems ofTickets and EMDs and embracing new technologies and standards.

Pay-as-you-use Model

Accelya Solutions offers its solutions on a pay-per-use model. It enables airlines to have a low capex and variable costs. At the same time, this model ensures the Company annuity revenue streams resulting in revenue visibility and foundation for growth. A win-win for customers and the Company.

Financial Analysis Shareholders Funds

Shareholders funds decreased from ^ 26,319.97 to ^ 25,777.89 lakhs during the year 2024-25.

Equity

During the year, Share Capital, and Securities Premium stand at ^ 1,492.69 lakhs and ^ 3,169.84 lakhs respectively. Presently, Accelya Solutions has 14,926,261 shares (Previous Year 14,926,261) of ^ 10 each fully paid up.

Profit and Loss Account

Accelya Solutions retained earnings as at 30June, 2025, amount to ^ 18,628.46 lakhs.

As at 30 June 2025, Accelya Solutions book value per share decreased to ^ 172.70 per share as compared to ^ 176.33 per share as at 30June 2024.

General Reserves Account

During the year, general reserve stands at ^ 2,391.52 lakhs. There is no change to this balance in the current year. Capital Redemption Reserve

During the year, capital redemption reserve stands at ^ 95.38 lakhs. There is no change to this balance in the current year.

Investment

Investments at cost, as at 30 June 2025 stands at ^4,741.05 lakhs. Provision of ^ 3,532.15 lakhs made during the previous year towards impairment against investment made in Accelya Solutions UK Limited, the wholly owned subsidiary ofthe Company.

Fixed Assets

Product Development

During the year, product development cost amounting to ^ 366.64 lakhs has been capitalised as an intangible asset. Other Fixed Assets

The Company added ^ 660.63 lakhs to the gross block comprising of ^ 655.50 lakhs in plant and machinery and ^ 5.13 lakhs in purchase offurniture.

Sale / Disposal of Assets

During the year, the Company sold/ disposed of assets with a gross and depreciated value of ^ 2,028.76 lakhs.

The Companys gross block as at 30 June, 2025 stood at ^ 21,027.25 lakhs as compared to ^ 22,047.64 lakhs as at 30 June, 2024. The corresponding net block as at 30 June, 2025 is ^ 2,519.92 lakhs as compared to ^ 3,188.86 lakhs as at 30 June, 2024.

Trades Receivables

The Companys net receivables as at June 30, 2025 amounted to ^ 8,943.13 lakhs as compared to ^ 8,630.14 lakhs as at June 30, 2024. These debtors are considered good and realisable.

The need for provisions is assessed based on various factors including collectability of specific dues, risk perceptions of the industry in which the customer operates and general economic factors which could affect the customers ability to settle and finally depending on the managements perception of the risk. The total provision for doubtful debts as at 30 June 2025 stands at ^ 12 lakhs compared to ^ 4.37 lakhs as at 30 June, 2024.

Trade receivables as a percentage of total revenue is 17.24% as at 30 June 2025 as against 18.33% as at 30 June, 2024. Non-current Liabilities

As at 30 June, 2025 the Companys non-current liabilities amount to ^ 6,523.21 lakhs as compared to ^ 3,931.83 lakhs as at 30 June, 2024.

Current Liabilities

As at 30 June, 2025 the Companys current liabilities amount to ^ 10,162.43 lakhs as compared to ^ 7,249.37 lakhs as at 30 June, 2024.

Result of Operations

Sale of services

For the year ended 30 June 2025, the Company recorded operating income of ^ 50,123.32 lakhs.

Operating Profit

The Company reported profit before exceptional items and tax of ^ 17,386.99 lakhs for the year ended 30 June, 2025. Profit after Tax (PAT)

The Company recorded PAT of ^ 13,036.69 lakhs for the year ended 30 June 2025.

Dividend

The Company had declared and paid an interim dividend of ^ 50 per equity share during the year.

IPR Assets and Amortisation

As a value innovator, the Company has always believed in developing its own Intellectual Property (IP) and over the years has invested significant number of resources in this development. All these products have been viewed as the best of the breed products by the industry and highly appreciated by the customers.

Details of IPR assets and amortisation are as follows:

Product IPR	^ Lakhs
Opening Net Block	1,198.72
Additions	366.64
Amortisation	547.83
Closing Net Block	1,017.53

RISKS, CONCERNS AND RISK MITIGATION Increasing Competition

New providers and existing technology vendors are constantly foraying into the airline IT and finance domain. Accelya Solutions invests in people, solutions and processes to ensure maximum value to its customers. The companys in-depth knowledge of the industry and its requirements makes it the partner of choice for airlines.

Uncertain Economic Environment

The airline industry is amongst the first to be impacted by any major economic or political situations. The Company is in a good position to mitigate this risk. The Company has a global customer base. The company has long term contracts with its customers which generates annuity revenues and provides good visibility on business.

Regulatory Risk

Proposed legislation in certain countries in which the Company operates, may restrict airlines in those countries from outsourcing work to the Company, or may limit its ability to send employees to certain client sites.

The Company has employees of different nationalities which helps in mitigating this risk to a certain extent.

Cyber Security and Data Privacy Risk

Global cyber security and data privacy threats are ever increasing. The Company has relevant controls and compliances in place to address these. The Companys Privacy Management Program covers continuous risk analysis and mitigation for all its products, services and processes. Our compliance with internationally recognised standards is demonstrated through our SOC 2 Type II attestation and ISO/IEC 27001 and ISO/IEC 27701 certifications.

Currency Volatility

Being a global organization dealing with global customers, volatility in currency exchange movements may affect the results ofAccelya Solutions operations.

The Company has currency hedging policies and practices in place which are regularly reviewed to mitigate this risk. Resource Availability

The Company is in an industry driven by domain knowledge and intellectual property and the Companys success depends in large part on its ability to attract and retain talent.

Internal Financial Control Systems and their Adequacy

The Companys internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. The Company has a well-defined delegation of power with authority limits for approving contracts as well as expenditure. Processes for formulating and reviewing annual and long-term business plans have been laid down.

The Companys management assessed the effectiveness of internal control over financial reporting as of 30June, 2025.

The Company has appointed Grant Thornton Bharat LLP to oversee and carry out internal audit of its activities. The audit is based on an internal audit plan, which is reviewed each year and approved by the audit committee. The conduct of internal audit is oriented towards the review of internal controls and risks in the companys operations such as operations and revenue review, accounting and finance, treasury management, procurement and facilities management, statutory compliances, human resource, payroll and cyber security.

The audit committee reviews reports submitted by the management and audit reports submitted by internal auditors and statutory auditors. Suggestions for improvement are considered and the audit committee follows up on corrective action.

Based on its evaluation, the audit committee has concluded that, as of 30 June, 2025, the internal financial controls were adequate and operating effectively.

Human Capital

We believe that our people are our most valuable asset. Our approach to human capital is rooted in the belief that an engaged and empowered workforce drives business success. Over the past year, we have continued to build on our strong foundation of people-first practices, with an emphasis on nurturing talent, promoting inclusivity, and fostering a culture of continuous learning and high performance.

We closely monitor our workforce metrics to ensure we attract, develop, and retain the best talent. It is our endeavor to bring in qualified professionals who align with our values and vision.

Educational

Post Graduates	Engineering /Other Graduates	IATA Certified / Diploma holders	Undergraduates
16%	73%	9%	2%

Gender

Men	Women
59%	41%

Attrition : FY 24-25: 8.8%

Period	Product & Technology	Managed Services	Business support
2025 (July 2024 to June 2025)	10.3%	6.0%	14.2%
2024 (July 2023 to June 2024)	8.7%	7.3%	13.1%
2023 (July 2022 to June 2023)	14.1%	9.3%	15.9%

Note: Voluntary attrition

It is our endeavour to have qualified professionals who aligns with our values and vision, while also investing in their continuous development through structured learning and mentoring programs. Our talent strategy is designed to build future-ready capabilities, enhance employee experience, and strengthen our position as an employer in the industry.

We have taken steps to enhance our people policies and strengthen our employee value proposition — aiming not only to attract top talent, but also to retain and develop them into future leaders. Our focus remains on cultivating a collaborative, transparent, and performance-oriented culture that supports innovation and agility. Here are a few highlights from FY25:

• Flexible Work Arrangements: Building on our established hybrid work model, we have continued to enhance flexible work options to support evolving employee needs. Our approach includes greater flexibility in work hours and remote working, enabling employees to maintain a healthy balance between personal and professional commitments, while staying productive and connected.

• Employee Well-being Programs: We have further strengthened our well-being framework with expanded offerings and deeper engagement. These initiatives continue to support the physical, emotional, and mental wellness of our workforce, with increased focus on preventive care, mindfulness, and resilience-building resources.

• Sports and Employee Connect Initiatives: Our sports and Employee Connect activities have grown into a key pillar of our employee engagement strategy. These programs go beyond physical fitness and fun— fostering teamwork, encourage collaboration, and a strong sense of community within the workplace, while also contributing to improved morale and employee satisfaction.

• Career Development Opportunities: We have continued to expand our career development initiatives by enhancing access to internal mobility, upskilling programs, and leadership pathways. These efforts are designed to empower employees to take charge of their growth and explore diverse career trajectories within the organization.

HR Technology and reporting

Workday Utilization Post Implementation

FY25 saw the full-scale utilization of Workday following its successful implementation in FY24. During the year, several enhancements were made to meet both regional and global requirements. Key HR processes were further simplified and standardized across the organization. The onboarding process was improved to create a more engaging experience for new hires, while o^oarding processes were also enhanced to ensure efficiency and audit compliance. These changes reflect our continued efforts to make the best use of Workday and to improve overall efficiency and employee experience.

Employee Engagement Survey

FY25 saw the launch of our second global employee engagement survey through Workdays Peakon tool, providing valuable and actionable insights into our employee engagement.

Reporting & Analytics

Workdays reporting and analytics capabilities were actively utilized in FY25 to support real-time decision-making across HR, Finance, People Leaders, and Leadership teams. A wide range of custom reports and dashboards were developed and made available, enabling stakeholders to access timely insights, monitor key metrics, and drive operational effectiveness.

Learning, Communication and DE&I

The Accelya Academy continues to play a central role in driving enterprise-wide enablement, serving as the cornerstone for capability development across the organization. In FY25, the Academys remit expanded significantly to include immersive, simulation-based enablement programs tailored to our core products and strategic initiatives. These hands- on learning experiences are designed to deepen product knowledge, enhance practical application, and accelerate time- to-competency for key roles.

In addition to internal programs, the Academy has broadened access to external learning pathways through partnerships with leading platforms such as Pluralsight and Linkedln Learning. These platforms offer a wide range of technology certifications and skill-enhancement opportunities, supporting both individual growth and team-level capability building.

The Academy is also introducing innovative approaches to foster cross-functional collaboration and continuous learning, reinforcing our commitment to building a high-performing, agile, and future-ready workforce.

Some of the highlights from FY25 are as follows:

Leadership Faculty

In FY25, the Accelya Academy launched a comprehensive 24-month leadership development program titled "Accelyrate", designed to equip current and emerging leaders with the skills and capabilities required to build and sustain high- performing teams. This flagship initiative reflects our commitment to investing in leadership excellence as a key enabler of organizational growth and transformation.

As part of this broader strategy, the Academy also introduced two targeted learning experiences:

• "High Performance Management" a one-day, in-person workshop focused on practical tools and techniques for driving team effectiveness and accountability.

• "Coaching for Success" an engaging virtual workshop aimed at enhancing leaders coaching capabilities to support individual and team development.

These programs represent the foundational elements of a broader, evolving curriculum that blends digital and live learning formats. The curriculum is specifically designed to support managers in navigating complex challenges such as leading through change, managing multi-generational teams, and fostering a culture of ownership and accountability across the organization.

Together, these initiatives underscore Accelyas strategic focus on building leadership capability at all levels, ensuring our people are empowered to lead with confidence and agility in a dynamic business environment.

Product and Technology Faculty

The Product and Technology Faculty delivered capability expansion and innovation extending our audience reach and building out new modes of learning.

In FY25, the Accelya Academy continued to expand its certification framework with the introduction of Level 300 (L300) modules. These advanced, simulation-based learning experiences are designed to deepen product and solution awareness by providing learners with hands-on exposure to Accelyas core offerings. This experiential approach enhances practical understanding and accelerates readiness for real-world application.

Importantly, the reach of these enablement modules has also extended beyond internal teams. Select programs are now being offered to Accelya customers as part of their onboarding journey, supporting faster adoption and more effective use of our products.

Also, the team launched Accelyas first global Hackathon, which saw enthusiastic participation from employees across multiple regions. The winning team proposed an innovative solution for managing cargo manifests using blockchain technology, demonstrating the creativity and technical depth within our global talent base.

Additionally, in collaboration with the Enterprise IT Services (EITS) team, the Academy introduced an official ITIL accreditation pathway. This initiative is aimed at upskilling critical roles within the organization, ensuring our teams are equipped with globally recognized best practices in IT service management.

These initiatives reflect Accelyas continued investment in building a high-performance, innovation-driven culture through targeted learning, cross-functional collaboration, and strategic capability development.

Expanded Enablement Search and Register via Workday Learn:

In FY25, Accelya expanded its learning operations by integrating key compliance enablement programs into the Workday Learn platform. This strategic move has streamlined access to mandatory training modules covering Information Security, Ethics and Compliance, Prevention ofSexual Harassment (POSH), and Whistleblowing.

By transitioning these programs into a fully digital format within our HRIS ecosystem, employees can now easily search for, complete, and track their compliance training directly within Workday. Successful completion records are automatically stored against individual employee profiles, enhancing both accessibility and audit readiness.

This integration not only improves the user experience but also strengthens our governance framework by ensuring consistent, organization-wide compliance with regulatory and ethical standards.

Communications / Engagement

With Accelyas global team spread across many locations, we continue to develop and strengthen our communications activities, through informing, creating transparency and enabling engagement.

• New initiatives this year included a series of In Conversation with video fireside chats, aimed at giving our teams an insight into the Executive teams both inside and outside of work, launch of news round-up, sharing key highlights from internally and externally published news.

• We ran our company-wide Engagement Survey via Peakon and exceeded our Engagement score by 20 points and survey participation by 12%

Diversity, Equity & Inclusion

At Accelya we embrace diversity and equality in all aspects of our business. We are committed to building a team with a variety of backgrounds, skills, and views - a place where every employee can be themselves so they can reach their full potential and help us achieve our business skills.

This year we increased our ERG activity with the formation of an ERG Chapter for Pune and continuing activities within Mumbai, as well as a revamped mentoring program and continuing our program of specialised events.

We also initiated our global Social Responsibility Program, with both Pune & Mumbai undertaking volunteering activities and donations to the designated charities supporting education.