Adcounty Media India Ltd Management Discussions

INTRODUCTION:

The Management Discussion and Analysis Report (MD&A) presents an overview of AdCounty Media India Limiteds performance, strategies, opportunities, and risks for FY 2025–26. It provides shareholders and stakeholders with insights into the external environment, industry dynamics, financial performance, and the Companys outlook. The analysis is based on current economic conditions, government policies, industry reports, and internal assessments. AdCounty Media India Limited, incorporated in 2017 and headquartered in Jaipur, has rapidly emerged as a global AdTech and brand-tech company. The Company specializes in programmatic advertising, performance marketing, connected TV (CTV) ads, digital solutions, and in-house platforms such as BidCounty, VOOHOO Live, Genwin, iSearch Ads, SeeTV, and Opsis. With operations across 20+ countries, AdCounty Media has positioned itself as a trusted growth partner for brands in e-commerce, gaming, BFSI, FMCG, edtech, travel, entertainment, and automotive.

FY 2025–26 also marked a major milestone for the Company with the successful completion of its IPO and stock market listing, strengthening its capital base and market visibility.

GLOBAL ECONOMIC OVERVIEW

The global economy remained resilient during FY 2025–26, although the operating environment continued to be shaped by geopolitical tensions, trade uncertainties, energy-price volatility, inflationary pressures and uneven economic growth across regions. According to the IMFs July 2026 World Economic Outlook Update, global growth is projected at approximately 3.0% in 2026 and 3.4% in 2027. The IMF notes that the global economy has been affected by the war in the Middle East, with higher energy prices and renewed inflationary pressures creating additional challenges, particularly for energy-importing economies. At the same time, strong technology investment and the continued expansion of AI-related activity are providing an important counterweight to these pressures. The World Banks June 2026 Global Economic Prospects presents a more cautious outlook, projecting global growth at approximately 2.5% in 2026, reflecting the impact of the Middle East conflict, higher energy prices, tighter financial conditions and disruptions across commodity markets. The report also highlights robust AI-related investment as an offsetting factor supporting global economic activity. For the technology, digital advertising and AdTech sectors, these developments have created a combination of challenges and opportunities. Geopolitical uncertainty and softer business sentiment in certain markets have resulted in greater caution in discretionary advertising expenditure, while the continued digitalisation of businesses has sustained demand for measurable, targeted and technology-enabled advertising solutions. At the same time, the rapid adoption of Artificial Intelligence, automation, data analytics and digital platforms is creating new opportunities across the technology and advertising ecosystem. AI is increasingly being applied to audience targeting, campaign optimisation, creative development, automation, performance measurement and fraud detection, enabling advertisers to seek greater efficiency and measurable returns from their marketing investments. For AdCounty Media, the continued global shift towards digital, data-driven and AI-enabled advertising represents a significant long-term opportunity. While near-term geopolitical and macroeconomic uncertainties may influence advertising budgets and campaign timing in certain markets, the underlying structural transition towards digital advertising remains intact. The Company believes its investments in AI-enabled products, proprietary technology, international expansion and strategic acquisitions position it to participate in this evolving global opportunity.

DOMESTIC ECONOMY OVERVIEW

India continued to remain one of the worlds fastest-growing major economies during FY 2025–26, supported by resilient domestic consumption, investment, services-sector growth and rapid digitalisation. Indias real GDP growth was estimated at approximately 7.6% during the year.

Key macroeconomic indicators remained broadly supportive:

GDP Growth: Approximately 7.6% during FY 2025–26.

Inflation: Retail inflation remained moderate, supported by easing food-price pressures and favourable base effects.

Forex Reserves: Indias foreign exchange reserves stood at approximately US$701 billion as of January 2026, providing a strong external-sector buffer. (Union Budget)

Fiscal Deficit: The Union Government targeted a fiscal deficit of approximately 4.4% of GDP for FY 2025–26, reflecting continued fiscal consolidation. (Union Budget)

The Indian technology and AdTech ecosystem continued to benefit from rising internet and smartphone penetration, e-commerce, OTT and online video consumption, and increasing adoption of programmatic, performance-based and AI-driven advertising. Government initiatives supporting digitalisation and technology adoption have further strengthened Indias digital ecosystem.

For AdCounty Media, Indias strong economic fundamentals and expanding digital ecosystem provide a favourable platform for continued growth in digital advertising, AI-enabled solutions and technology-led marketing services.

INDUSTRY OVERVIEW Market Size

The global digital advertising industry continued its strong growth during FY 2025–26. Digital advertising is estimated to account for around 70% of global advertising expenditure, with worldwide digital ad spending projected to exceed US$950 billion in 2026. The industry continues to evolve rapidly with the growth of AI, programmatic advertising, mobile, online video, Connected TV (CTV), retail media and data-driven advertising.

India remains one of the fastest-growing digital advertising markets. Digital advertising expenditure reached approximately 49,000 crore in FY 2024–25, representing 44% of total advertising expenditure and growing 20% year-on-year. Industry estimates projected digital advertising to grow a further 15% in FY 2025–26, reaching approximately 56,400 crore.

Growth Drivers

The growth of digital advertising in India is being driven by:

Increasing internet and smartphone penetration;

Growth in e-commerce, fintech, gaming, OTT and digital services;

Increasing adoption of programmatic and AI-driven advertising;

Growth of CTV, online video and mobile advertising; and

Continued shift of advertising budgets towards measurable, performance-oriented digital channels.

Mobile continues to be the dominant digital advertising environment in India, accounting for approximately 78% of digital advertising expenditure, while CTV and online video are creating additional opportunities for advertisers.

For AdCounty Media, the combination of its technology capabilities, AI-enabled products, advertising expertise and international presence provides an opportunity to participate in these expanding segments.

Regulatory Backdrop

The regulatory environment for AdTech continues to evolve, particularly around data privacy, consumer protection, digital advertising and responsible use of technology. During FY 2025–26, Indias Digital Personal Data Protection Rules, 2025 were notified, further developing the countrys data-protection framework.

Globally, privacy regulations and changes in browser and platform policies continue to reshape data-driven advertising. These developments increase the importance of privacy-compliant technology, responsible data practices, transparency and first-party data capabilities.

Competitive Dynamics

The global AdTech market remains highly competitive, with large technology platforms, advertising networks and specialised programmatic players competing for advertiser and publisher relationships. Competition is increasingly driven by AI capabilities, targeting precision, campaign performance, technology scalability, pricing, data analytics, fraud prevention and measurable ROI.

AdCounty Media seeks to differentiate itself through its proprietary technology platforms, AI-enabled products, multi-format advertising capabilities, international presence and strategic acquisition of Adaxx Adtech and Media LLP. Continued investment in technology, innovation and talent will remain important to maintaining competitiveness.

BUSINESS OUTLOOK

The outlook for AdCounty Media remains positive, supported by the continued shift towards digital advertising and the growing adoption of AI, automation, programmatic advertising, CTV and performance-led marketing. Indias digital advertising spend is projected to grow by approximately 15% in FY 2025–26, reflecting continued demand for technology-enabled advertising solutions.

Going forward, the Companys key priorities include:

Scaling its AI-enabled products, including Opsis Pro, iSearch Ads and Adaxx Pro;

Expanding programmatic, performance marketing, CTV and other digital advertising solutions;

Leveraging synergies from the acquisition of Adaxx Adtech and Media LLP;

Strengthening its international presence, particularly across MENA, Southeast Asia, Europe and Latin America;

Developing AdCounty Global Media LLC, Dubai as a platform for opportunities in the Middle East; and

Continuing investment in technology, R&D and skilled talent.

The Company believes that the convergence of AI, data, automation and digital advertising will create significant opportunities for growth. While geopolitical and macroeconomic uncertainties may continue to affect advertising budgets in certain markets, AdCounty Media remains focused on building scalable technology, diversifying its geographic presence and delivering measurable value to advertisers and partners.

OPPORTUNITIES AND THREATS: Opportunities

Rapid growth of digital advertising and programmatic ecosystems.

Increasing adoption of AI, automation and data analytics.

Expansion of CTV, mobile, video and performance advertising.

Growing domestic and international demand for measurable, technology-led advertising solutions.

Opportunities from international expansion and strategic acquisitions.

Threats

Intense competition from global and specialised AdTech players.

Geopolitical and macroeconomic uncertainties affecting advertising expenditure.

Cybersecurity, data privacy and regulatory risks.

Foreign exchange fluctuations in international markets.

Rapid technological changes and challenges in attracting and retaining skilled talent.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Operational performance of the Company can be obtained from the various following ratio analysis.

Return on Equity Ratio: 27.75%

Current Ratio is 9.11 times

Net Profit Margin Ratio is 23.67% percentage

Return on Capital Employed 25.07%

RISKS AND CONCERNS

AdCounty Media operates in a rapidly evolving and competitive industry. The key risks include:

Macroeconomic and geopolitical uncertainties affecting advertising expenditure.

Foreign exchange fluctuations impacting international operations and earnings.

Data privacy, cybersecurity and regulatory risks, including compliance with GDPR and Indias DPDP framework.

Dependence on technology platforms, publishers and digital ecosystems.

Rapid technological changes and increasing competition in the AdTech industry.

Challenges in attracting and retaining skilled technology and AI talent.

The Board and Senior Management regularly review the Companys enterprise risk management framework and undertake appropriate measures, including geographical diversification, internal controls, compliance monitoring, technology safeguards and insurance coverage, to mitigate identified risks.

INTERNAL CONTROLS AND THEIR ADEQUACIES:

The Company has established robust internal control systems to ensure:

Accurate and reliable financial reporting.

Safeguarding of assets and data.

Compliance with applicable laws and regulations.

Effective risk management and IT controls.

These systems are regularly reviewed by the Audit Committee and management and strengthened through continuous improvements.

OUTLOOK:

Following its listing in July 2025, AdCounty Media has entered a new phase of growth. The Company remains focused on AI-led technology, digital advertising, international expansion and strategic initiatives to strengthen its market position. With continued investment in technology, products and talent, the Company aims to pursue sustainable growth while maintaining operational discipline, sound governance and long-term value creation for shareholders.

HUMAN RESOURCES DEVELOPMENT:

People remain a key strength of AdCounty Media. The Company promotes a performance-driven, inclusive and innovation-focused culture through:

Continuous development in digital advertising, AI, analytics and technology;

A structured performance management and goal-setting framework;

Employee engagement, well-being and professional development initiatives; and

Hiring and retaining skilled talent across India and international markets.

As the Company expands its technology portfolio and global operations, strengthening AI, technology and digital advertising talent will remain a key priority.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis and Directors Report describing the Companies strengths, objectives, strategies, projection and estimate are forward looking and progressive within the meaning of all applicable laws and regulation. Actual results may vary depending upon the various aspects of the economic such as government policies, rules and regulations, economic conditions and other incidental factors. Important factors that could make a difference to our Companys operations include raw material availability and prices, cyclical demand and pricing in our principal markets, changes in government regulations, tax regimes, economic developments within India and outside the countries in which we conduct business and other incidental factors. Management will not be in any way responsible for the actions taken based on such statements.

		For and on behalf of the Board of Directors
		FOR ADCOUNTY MEDIA INDIA LIMITED
	CHANDAN GARG	ADITYA JANGID
	Joint Managing Director	Chairman & Joint Managing Director
	DIN: 06422150	DIN: 01655674
Place: Jaipur
Date: 01/09/2026