Addictive Learning Technology Ltd Management Discussions

COMPANY OVERVIEW AND EDTECH SECTOR OUTLOOK

1. What we do

We build and sell online professional education to working adults. Our two operating brands are LawSikho, which serves lawyers and law students, and SkillArbitrage, which serves professionals across accounting, finance, technical writing, research automation and allied fields. Both sell structured programmes which operate on live classes, practical assignments & placement support services, offered in batches rather than passive video libraries coupled with PDFs, and both are sold predominantly to adults paying for themselves in the expectation of better work and better income, women who took a career break but want to return back to the workforce by working remotely, and retired professionals. Approximately 70% of our learners are above 30 years of age. We have launched some additional brands like AccioFinance, AccioContent, Helloparalegal and Outsource 360 but these are nascent brands with insignificant revenues at this point.

2. How has the Edtech sector changed and how we come in

At the time of the advent of COVID, there were two shifts in the Edtech sector.

The first was a shift in capability - what could credibly be taught online at all. The second, which played out over the funding cycle that followed, was a shift in market structure - where capital and the large platforms chose to concentrate. Between them they explain why a business like ours became viable, and why we now compete in our segments against unusually few others.

High-quality education began to be genuinely deliverable online. The question of whether serious professional learning could happen outside a classroom was settled. Prior to this, there were geographical barriers. But the delivery of high quality education online erased these. And hence, even students or professionals in small towns got access to world class education. Further, specialised learning became possible. If a professional wanted to develop skills in a particular field, he or she was not required to go through an entire curriculum which would include things other than the specialised area. That was the first shift in its early form: access, and the ability to learn one thing well rather than everything that a university or college required.

It did not stop there.

Advanced, practice-oriented material - the kind experienced professionals actually seek - can now be delivered, assessed and supported remotely at a standard that did not exist a few years ago. This removes a ceiling that constrained the entire category. So much for what became possible. The second shift concerned not what could be taught, but who chose to teach it.

The sector has consolidated, and the consolidation happened away from us. A small number of large players now dominate the mass-market segments - K12, competitive exams, degree programmes. But our segments are different: they are narrow, credential-sensitive, and require deep domain content that cannot be produced by a generalist content team.

Several well-funded horizontal platforms attempted to enter professional and legal upskilling during the funding cycle; they did not achieve traction and have redirected their efforts to larger, simpler markets. The practical result is that we face limited direct competition in our specific set of verticals - an unusual position in a sector otherwise characterised by intense price competition. Ground vacated by others is only worth holding if you can produce for it - deep, current, credential-grade material in a narrow field, at a cost the segment will bear. That is the capability we have spent several years building, and it is not confined to law.

Our vertical playbook has proved extensible. What began in law now runs in accounting and finance, and over the past cycle we have added technical writing, research automation and AI-assisted professional skills.

Each new vertical reuses the same machinery: domain-expert faculty, cohort-based delivery, mentor support and a bootcamp funnel supported by callers. This is the capability that larger players attempted and could not replicate at acceptable cost, and it is the basis on which we expect to keep adding verticals. We keep identifying niche areas which are not served, but which are sought after by many professionals and we keep extending our course offerings accordingly. Taken together, the two shifts describe our position: the first made this category possible, the second left it largely to us, and the playbook set out above is how we intend to keep it. What follows is an account of what happened during the year when one input to that playbook - the cost of reaching our audience - moved sharply against us.

3. FY26: what broke, and what it cost

Our acquisition engine is largely through live events. We run free and low-priced bootcamps at scale; attendees who find value enrol in longer programmes. Media spend on Meta and Google feeds those bootcamps. Two features of this model matter for reading our financial statements. First, it is front-loaded: we pay to acquire a registration today and recognise the associated revenue over the following two to three months. Second, it is sensitive to acquisition cost: the unit economics work while return on ad spend holds above roughly 4x and cost per registration stays within a defined ceiling. When that ceiling breaks, the damage appears in revenue a quarter later - and when it is repaired, the recovery appears with the same lag. FY26 and Q1 FY27 are, respectively, a clear demonstration of each.

In October 2025 Meta completed the rollout of a fundamental redesign of its advertising delivery system. The previous model, in which advertisers selected audiences, interests and lookalikes, was replaced by a system that reads the advertising creative itself to decide who sees it. Targeting, bidding and placement - the levers a media buyer controls - were substantially automated. Testing dozens of creatives and messages in ads became the determining variables for success.

This affected every advertiser on the platform all over the world; industry data through 2025 records materially higher CPMs, cost per lead and cost per acquisition across markets.

For us the effect was immediate and severe. Our cost per qualifying registration doubled in a single month, from approximately 1,022 in September 2025 to 2,052 in October. It then settled at a plateau of roughly 1,250 and stayed there for five consecutive months, from

December 2025 through April 2026, despite continuous optimisation by an experienced performance marketing team, a dedicated analyst, and design and technology support.

Because bootcamps sit at the top of our funnel, the revenue consequence arrived with the usual lag and compounded with difficulties in our sales engine over the same window. Monthly cash outflow crossed 8 crore. We were losing approximately 2 crore per month, and we reported a pre-tax loss of 4.7 crore in Q4 FY26.

This was not a demand problem. Enrolment intent among our audiences did not fall. What changed was the cost of reaching that demand, and the reason it changed was that the platform now allocates distribution on the strength of content. Our content production capacity - a handful of landing pages and creative sets, produced on designer and developer timelines - was built for the old system. We were, in effect, competing in a content auction with the output of a manual team that demanded AI augmented speed.

4. How did we fix this and what did it createRs.

From April 2026 we rebuilt the acquisition engine around AI-assisted content production directed by first-party data. In outline:

1. We connected internally developed AI tooling directly to our advertising accounts;

2. We assembled the customer knowledge & data that already existed inside the business but had never been consolidated - sales call transcripts, poll responses, analytics, professional backgrounds and purchase histories of past attendees & analyse it with AI, conducted voice-of-customer research through AI on how our buyers describe their own problems in their own words, and then rebuilt landing pages and creatives around what that evidence said.

3. We also built our own custom-platform that enabled us to deploy 50-100 landing pages & creatives per bootcamp.

That enabled us to target our potential buyers more accurately & extensively at a level that was not possible earlier based on human judgment alone.

The change in production capacity was the operative variable:

Landing pages went from approximately three per day produced manually to twenty in two hours, each with matching statics and carousels, without a designer.

Deployment time for a new page fell from roughly three hours of technology-team effort to ten minutes.

The process itself was codified into an internal playbook, so that the capability now sits with the team and is repeatable, rather than residing with any individual. The results, measured on the same accounts and the same funnel types:

Acquisition cost per registration	Crisis / plateau	May Aug 2026	Change
Qualifying registrations ( 100 200 funnels)	1,235	524	58%
Tripwire registrations ( 10 funnels)	1,120	215	80%
Free bootcamp registrations	150	49	70%
	250	77

We tested the obvious alternative explanation - that the advertising market simply became cheaper. Over the same period CPM, the price the market charged us for attention, fell about 25%, while conversions per impression, which reflects what our message did with that attention, rose about 78%.

The larger part of the improvement was earned, not automatically received.

The financial recovery followed with the expected lag. We reached breakeven in April May 2026 and generated approximately 1.8 crore of net cash in June. Q1 FY27 revenue was 22.7 crore, up nearly 59% quarter on quarter on a consolidated basis, with approximately 4 crore of operating cash flow on a standalone basis, against a 4.7 crore loss in the immediately preceding quarter a swing in monthly cash generation. This was achieved without raising equity, taking on debt, selling assets, or adding headcount in marketing.

5. What we intend to do next

The FY26 episode changed our view of where this companys advantage lies. Four priorities follow from it.

5.1 Deepen and extend the vertical franchise

Our defensibility comes from occupying professional niches that are too small, too specialised and too content-intensive for horizontal platforms to serve profitably, and too demanding for undifferentiated competitors to enter. We intend to keep widening that set - as we have with technical writing and research automation - using the same delivery machinery. The economics of adding a vertical are now substantially better than they were, because content production is no longer the bottleneck it was.

5.2 Sell access to work, not only instruction

The cross-border opportunity for Indian professionals has grown, but the mechanism by which it is captured has changed fundamentally.

Until recently, an individual professional reached international clients through marketplaces, which intermediated, ranked and took margin.

We also trained our students to reach potential clients, SMEs & high-growth startups directly, because a fraction of our learners would execute all the steps by design.

Those who did not systematically invest 2 hours per day and follow the series of steps given or who were not coachable or gave up midway could not get results. Only the driven learners would be able to execute at a high-level earlier. Scaling this process also required availability of very skilled human mentors from our end, which can quickly get costly and unwieldy.

However, we have now found a way to make it easier for our students to land work by creating proprietary AI apps that enable our learners to identify prospective clients for their services directly, research/‘audit? their relevant needs based on publicly available signals, and send customised pitches & follow-ups.

We have made several such applications internally, and are currently in process of deployment of more such apps.

This should enable us to deliver success to a higher volume of learners, and become a new moat in our business.

Here are 27 of the apps we are most excited about:

AI in our students? hands

S. No. Name of the tool	Status	Purpose
1 BriefReach	Live	Law students can find potential clients and send targeted outreach in one pass.
2 PitchMachine	Live	Students can find small-business prospects, check their social media presence and draft a pitch in Gmail. It has a built-in offer creator.
3 LedgerReach	Live	Students can find under-branded US CPAs, score their online presence and write a pitch to them.
4 PitchScholar	Live	Finds a professor?s latest research, analyses it for gaps and creates a pitch that speaks to their work.
5 ApexDraft	Live	Helps create a Supreme Court SLP in around 5 minutes, with Order XXI / XXII structure intact.
6 StageOne	Live	Takes the strongest idea in a career and creates submission-ready pitches for 25 live TEDx India events, checked against 9 signals.
7 Patently	Live	Provides a full USPTO practitioner roster, portfolio analysis, outreach and a content hub from one dashboard.
8 TalentFlow	Live	Takes role, company type and city, and returns matching LinkedIn profiles with work emails. No platform subscriptions, no agency fees.
9 TalentReach	Live	Finds funded startups that are hiring, analyses their branding gaps and queues pitch emails in Gmail for review.
10 TrendScope	Live	Spots content outperforming an account?s own norm, then hands over 5 ideas and a ready-to-film script.
11 CaseCraft	Live	An app that enables lawyers and law students to prepare first drafts of articles on latest judgments in the United States, to build their credibility with US lawyers. Looks at recent judgments and prepares citation-anchored, SEO- optimised drafts for legal writers.
12 ClientLens	Live	Client meeting preparation tool: 45 minutes of prospect research becomes a one-click call brief with an opening line and a pitch angle.
13 InterviewPilot	Live	Drafts candidate-specific interview questions with model answers for evaluations, for HR professionals.
14 Offerly	In testing	Offer-creation tool for our learners based on their prior background. Generates three ready-to-pitch offers, plus the first outreach email.
15 Onboarding Plan Generator	Live	An app to generate customised onboarding plans for new candidates.
16 BrandFlow	In testing	Dedicated employer branding app for follow-up emails. Studies the employer brand gaps of the company and of its competitors.

Fourteen of these sixteen applications are live in learners? hands today.

AI running the business

S. No. Name of the app	Status	Purpose
1 Mailbhejo	Live	Our own email platform, built to make email marketing simple and easy to use, replacing a paid tool. We have already sent around 4.5 lakh emails in the last 20 days through it.
		It comes with AI-powered email generation, along with an AI Buddy where we can analyse campaigns, get insights and understand performance simply by giving it a prompt.
		It also has a full Automation Builder for complete email workflows. We currently have 3 automations live, and these alone have already sent around 80,000 emails on their own.
2 AnswerLens	Live	Shows who answered the most learner queries, and whether the answers were right.
3 ProspectFeed	Live	Generates targeted LinkedIn profiles for our students. So far, around 28,420 target LinkedIn profiles generated for approximately 617 students.
4 Leads Portal Automation	Live	Before this automation, the team spent around 2 hours extracting leads from all the lead descriptions. The same work is now completed in less than 1 minute.
5 BootcampOS	Built, not yet deployed	Internal project management for our live events? team - tasks, chat, clock-in, leave, issues and finance for bootcamp operations in one place.
6 HR Management Software	Built, not yet deployed	Internal HRMS & payroll for our team

 

S. No. Name of the app	Status	Purpose
1 Placement Tracker	Live	Session booking, recording and feedback tracked end to end in the portal. Replaced a freelancing spreadsheet.
2 Dossier Engine	Building	Roadmap and dossier creation in Salesa, automated.
3 MentorFlow	Building	Mentorship emails, documents and follow-ups sent from the sheet, with templates attached and placement IDs CC?d.
4 PlacementPulse	Building	Daily placement-team performance, pulled automatically from Acefone, TD, Zoho and Placement Tracker.
5 JobFeed	Building	Jobs uploaded to LawSikho and the Student Portal automatically.

5.3 Build personalisation and AI guidance

We believe the next leaders in online education will be the organisations that personalise: that adapt the path, the pace, the practice and the guidance to the individual learner, and that use AI to tell a learner what to do next rather than leaving them to navigate a catalogue. The demand for this is evident. We have not achieved it yet, and we say so plainly. We expected suitable off-the-shelf software to become available; it has not, at the standard our programmes require. We are therefore building this capability in-house. It is the single largest product opportunity we see in front of us, and the area in which we intend to concentrate development effort.

5.4 Hold the cost strategy that already works

Our long-standing operating strategy - AI for production and leverage, combined with low-cost community-based resources for delivery and learner support - remains valid and was validated by FY26. The turnaround was executed with existing people and no incremental marketing hires. We intend to keep our cost base structurally light and to convert improvements in AI capability into operating leverage rather than into headcount.

The year just past tested whether this business can identify a structural change, diagnose it correctly and rebuild against it without external capital. On the evidence of Q1 FY27, it can. The work now is to apply the same method to the opportunities described above.

COURSES AND CONTENT

FY 2025-26 was a year of deliberate consolidation even in content creation rather than volume expansion. The Company launched 14 new courses during the year (against 32 in FY 2024-25), with a further 7 courses created since year-end and up to the date of this report. Underlying content volumes across chapters, decks, scripts, templates and assignments were correspondingly lower than the prior year, reflecting a shift in focus toward deepening and operationalising the AI-led initiatives described below rather than pure content throughput. The Company continues to operate its four product categories unchanged.

Item	FY 2025-26	FY 2024-25
New courses launched during the year	14	32
Courses created post year-end, till report date	7	11
Comprehensive chapters	532	2,754
Presentation decks	1,252	1,850
Class scripts	1,090	1,200
Case studies	N/A this year	750+
Professional templates	337	1,941
Practical assignments simulations	588	1,875
Product categories offered	4 categories	4 categories

User Satisfaction

Consolidated performance metrics for the period January 2026 to June 2026 show that 92.17% of all 9,747 sessions carried out for the upskilling courses achieved ratings above 80%, compared with 94.8% of 5,215 sessions in the previous reporting period. The Company also collected 275,117 feedback responses during the period, a marked increase from 179,897 previously, further strengthening its voice-of-customer database even as session volumes and the satisfaction rate normalised slightly from last years exceptional levels.

Metric	FY 2025-26	Prior period (FY25 MDAR)
% of sessions rated above 80%	92.17%	94.8%
Measurement period	Jan 2026 - Jun 2026	Mar 2024 - Aug 2025
Total sessions in period	9,747	5,215
Total feedback responses collected	275,117	179,897

AI INITIATIVES

Status of FY 2024-25 AI Initiatives: What Has Actually Landed and what is already running

Last years MDAR set out some AI initiatives across sales, support, content and risk management. The table below updates investors on the initiatives for which the Company has reported a concrete status change during FY 2025-26.

Initiative	Promised timeline (FY25 MDAR)	Current status	Details / impact
Personalized Career Development at Scale (upskilling AI)	Roll-out by March 2026	Rolled out	Personalised roadmaps and calls are being provided to all enrolled students based on their individual profiles.
Intelligent Assignment Evaluation	January 2026	Rolled out	Evaluation team scaled down to 2 members from 30. All evaluations are AI-handled with under 1% escalation, and satisfaction is 21% higher than the prior manual process.
Dynamic Personalised Learning Dashboards + learner AI agents	January 2026	In progress	First version of three learner-facing apps has been rolled out for beta testing with students.
AI-Powered Voice Agents (sales)	In training (FY25)	Rolled out	Approximately 7 lakh minutes of calling completed through the AI voice agent, driving a significant increase in bootcamp show-up rates.
20 sales callers/month hiring plan	From September 2025	Delayed & substantially redesigned	Callers were hired, but a major part of the pre-sales process was subsequently replaced by the AI voice agent, raising per-caller productivity while downsizing and reducing the overall cost of the sales team.

Status of Arizona University of Management and Technology Inc. (the Company?s US University initiative)

While substantial groundwork relating to the pre-approval for the University has been completed, this requires significant management bandwidth and focus and hence, the initiative has been paused in light of a terrible quarter until we could get to steady net cash generation. However, this project is on the radar of the management as one of the first to be taken up once the profitability and cash flows of the Company are stabilized. The State of Arizona was chosen since the approval is expected to be received fastest in this State and hence, once re-started, the deployment is expected to be speedy.

UPDATE ON COMMUNITIES

As we discussed in our last year?s Annual Report, the WhatsApp and telegram groups that we built for the communities worked as an additional customer acquisition channel for us, to replace the advertising cost. We also onboarded these members on our proprietary apps to improve our communication channels and reachability.

The fact that these communities continue to give and provide ongoing revenue became obvious as we recorded revenue of INR 50-75 lakhs per month coming from reengaging the community members through our owned assets without requiring further advertisements. In some cases, the community members who registered had been in our community for as long as one and half years before they decided to purchase a course from us.

SALES TEAM AND PROCESSES

We have fundamentally restructured our sales approach from rapid headcount expansion to productivity-led, sustainable growth. After recognising that expansion was outpacing management bandwidth, we consciously reduced team size and focused on improving per-caller productivity, manager effectiveness and training quality. With a dedicated training function, AI-led call analysis, transcript-based coaching, LeadSquared integrations and training models built around our highest-performing callers, we are generating higher revenue with roughly one-third of the earlier team size since Q1 2026-27. This has created a much more stable, efficient and scalable sales engine.

OUTLOOK ON THE INDIAN ECONOMY

Indias economy spent FY 2025-26 proving, once again, that domestic demand can carry growth even when the external environment turns hostile. The Provisional Estimates released by the National Statistical Office, Ministry of Statistics and Programme Implementation, on 5 June 2026 place real GDP growth for FY 2025-26 at 7.7%, against 7.1% in the previous year. This acceleration was not evenly spread across the year - it built momentum, culminating in an unusually strong final quarter that surprised even optimistic forecasters growth in the January-March 2026 quarter being placed at 7.8%. The International Monetary Fund raised its growth projection for India by 0.7 percentage points to 7.3% in its World Economic Outlook Update of January 2026, citing the strength of the final quarter. The engine behind this was familiar and reassuring: households spending, services firing on all cylinders, and government capital expenditure holding steady.

What makes this performance noteworthy is the backdrop against which it occurred. Mid-year, the United States imposed some of the steepest tariffs it has placed on any trading partner (an initial 25% tariff imposed in 2025 and subsequently doubled to 50%), driven by geopolitical friction over energy purchases rather than conventional trade disputes. For goods-exporting industries, this created real uncertainty and disruption. But - as this report anticipated a year ago - the services sector, which is where your Companys business is anchored, proved largely insulated from the turbulence; global demand for Indian professional and technology talent does not move with tariff schedules. The India-United States trade agreement announced on 2 February 2026 reduced the tariff on Indian exports to the United States from 50% to 18% with effect from 7 February 2026, substantially de-escalating the tension and bringing Indias tariff treatment roughly in line with regional peers and lifting a cloud of uncertainty that had weighed on investment sentiment through the second half of the year.

Underneath the headline growth numbers, the macroeconomic environment turned unusually benign. Headline consumer price inflation fell to an all-time low in October 2025, giving the Reserve Bank of India room to reduce the policy repo rate by a cumulative 100 basis points during 2025, to 5.25% following the Monetary Policy Committees decision of 5 December 2025, without stoking price pressures. This combination - cheap money, strong balance sheets, and reduced trade uncertainty - is the classic recipe for a private investment cycle, and there are early signs that businesses are beginning to respond. Looking ahead, most major forecasters expect growth to moderate somewhat from FY26s exceptional pace as one-off tailwinds fade, but all agree India will remain among the fastest-growing large economies in the world for the foreseeable future.

For a Company built around professional upskilling, this is a favourable setting on several fronts. Low inflation preserves households ability to spend on education and career investment rather than just essentials. The steady formalization of Indias economy continues to expand the pool of organized-sector professionals who need to keep their skills current. And most significantly, the pace at which Indian businesses - small and large - are adopting AI shows no sign of slowing, continuing to redraw what employers expect from their workforce and reinforcing, year after year, why professionals keep turning to the Company to stay relevant.

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND RISKS FOR THE COMPANY

Strengths

? In addition to a demonstrated control on marketing costs, AI has also cut internal software costs directly: a proprietary in-house email platform (replacing a paid tool) and a proprietary ad-serving platform (replacing paid infrastructure) each cut a specific recurring cost by roughly 80 90%.

? Evaluation of student assignments, certification/refund processing, and roughly a quarter of support tickets are now handled with little or no human involvement, which has both lowered cost and raised satisfaction scores.

? Balance sheet is clean and the recovery has been self-funded. The company carries zero debt, has not diluted shareholders to fund the turnaround, and moved from consuming cash ( 62 L net cash movement in FY26 on a standalone basis) to generating it (+ 2.11 Cr in Q1 alone on a standalone basis). It still holds 7.21 Cr of undeployed IPO proceeds as a reserve, 5.21 Cr of which are now sought to be deployed towards working capital with the approval of the shareholders.

? Three distinct revenue engines, not a single point of failure: Bootcamp-driven sales (up to 4 5 Cr/month), inside sales ( 3.5 Cr/month and growing), and community revenue ( 1 Cr+/month) are three separate engines that management now reports and tracks separately - reducing reliance on any single channel.

? Genuine niche leadership in some certification categories: The Company has a very strong presence in several niche, high-value certification categories such as the UK Solicitor Qualifying Exam, the Canadian NCA exam, and comparable US credentials - areas with very few, and mostly offline, competitors.

? Increased disclosure cadence and transparency versus a year ago: The Company has voluntarily moved from half-yearly to quarterly results and calls, and now maintains granular internal metrics (funnel-level ad costs, net cash by month) that go beyond statutory disclosure requirements.

Weaknesses - and what the Company is doing about it

? Low reported profitability: The Company reported a very low profitability of INR 1.01 Cr on a standalone basis for the entire year 2025-26 and only 22.9 lakh on a standalone basis on 22.6 Cr of revenue for Q1 2026-27. However, the reported profitability has been low on account of amortization of capitalized intangible assets. While the management expects that there will be further impact of amortization for the next few years at the same levels before it starts to taper off, further significant capital expenditure is not envisaged and the Company now expects to derive benefits from the assets already created. We believe that our cash generation will far outrun the amortisation schedule in the medium run.

? High impact of movement of a single cost metric: The prior H2 FY26 loss was caused almost entirely by advertising costs spiking 2 3x from October 2025, which were not anticipated and took roughly two quarters to fix. However, the Company has since brought in strict monitoring of overall costs with the help of AI and therefore any unexpected movement in costs is now caught early, thus reducing its adverse impact.

? Sales execution had been breaking under scale: The Company?s inside sales revenue had crashed from 3.5 Cr to 2 Cr/month during H2 FY26. However, the Company thereafter brought in one of its Co-founders to take over and streamline the functioning, again, with the help of AI. The same Co-founder is further looking to set up a physical team in Indore, thus providing a more direct monitoring of execution and reducing chances of breakage.

? High key-man dependency: The Managing Director had to personally take over the advertising function full-time from around February to April 2026 and remains hands-on. However, he is bringing in people and AI-driven systems which can enable functioning of the advertising function with reduced dependency on him.

? Continuous deferment of certain stated initiatives: Some of the Company?s initiatives like the

US university plan (Arizona University of Management and Technology Inc.), the microlearning app, the Brihaspati.ai and SkillsafterAI brands, the LawSikho Opportunities job platform and the Justice Scanner legal intelligence tool etc. have been deferred since the previous year. However, this is a period of consolidation for the Company and the Company is placing all its resources and management bandwidth in regaining profitability prior to implementation of these initiatives. However, these initiatives have not been shelved - once the Company achieves predictable "net cash" - it?s own internal marker, these initiatives shall be picked up for implementation.

Opportunities

? A dormant, largely-prepared US university initiative: Pre-approval work for a US-accredited institution (Arizona University of Management and Technology Inc.) is already done; final regulatory approval is achievable soon. If pursued successfully, this would open degree-granting status and a US-market growth avenue that is currently on hold.

? Meaningful near-term growth may be achievable just by adding delivery capacity, not by fixing demand. As of Q1 2026-27, the sales team of the Company is only using approximately 50% of the qualified leads being generated by advertising, because trainer and sales capacity - not demand or ad cost - is now the binding constraint. This implies growth is achievable simply by hiring and training more bootcamp leaders and salespeople against an already-proven demand base.

? Reported competitor exits could expand available market share. Management asserts that at least two competitors, including one large, well-funded company, have exited the legal-education space during the period the Company was struggling - potentially leaving a larger addressable share for the Company as it recovers.

? New, higher-value course lines via IIT partnerships, aimed at GCC hiring demand. New courses in quantitative finance and algorithmic/high-frequency trading are being developed in partnership with IIT faculty, targeting demand from Indias Global Capability Centres (GCCs) - a higher-value, less-penetrated segment than the Companys existing legal/compliance courses.

? Early-stage optionality in microlearning and B2B: Microlearning courses and further B2B/licensing angles are in early planning stages, giving the Company additional optionality beyond its current bootcamp/inside-sales/community model.

Threats - and what the Company is doing about it

? Structural dependence on a small number of ad platforms whose pricing the Company does not control: One important event that caused the prior loss-making half-year was a spike in Meta and Google advertising costs. While the Company explicitly worries about the ad cost ballooning, the monitoring mechanisms of the Company are now much better and hence, any change in algorithms or any movements in the costs can now be discovered early and hence tackled early, thus reducing its negative impact.

? AI-driven disruption of the freelance/gig platforms: The same AI wave that is cutting the Companys own costs could also shrink demand for the entry-level freelance/remote-work outcomes it sells. However, the Company is looking to counter this in two ways: first, training its students in AI related skills, thus increasing their hiring potential and second, training its students in outreaching in a different manner, otherwise than through the established remote work platforms.

? Regulatory and accreditation risk, both in India and for the planned US entity: The planned US University will require ongoing, year-on-year regulatory evaluation once operational, and several of the Companys Indian certifications benefit from continued recognition under national education policy and bodies like the NSDC - both are external dependencies outside managements control. This is exactly why the Company is looking to pursue the US University initiative only when there is adequate management bandwidth available, so that the systems can be developed enough to meet the annual regulatory scrutiny. While the Indian certifications do benefit from recognition from NSDC, the sales are not dependent upon such certifications - these are based largely on the value provided by the Company.

? Exposure to discretionary spending in a professional/white-collar customer base: Course prices for the courses offered by the Company range from 40,000 -120,000+ and the courses are thus, not a necessity, but a desire, requiring active sales persuasion. A broader slowdown in Indias white-collar or professional hiring market could reduce willingness to pay for this kind of discretionary upskilling. This is why the Company is looking to tap international markets, so that macroeconomic conditions for one country cannot impact business as a whole.

LIQUIDITY POSITION OF THE COMPANY

As at the end of 31st March 2026, the Company had total available liquidity of INR 7.72 Crores, comprising of INR 74.62 lakhs of cash and cash equivalents and INR 6.97 Crores invested in highly liquid instruments.

However, during the first quarter of 2026-27 itself, the Company generated a net increase in cash of INR 2.11 Crores (published numbers), thus improving the liquidity position.

Therefore, the Company?s actual cash position as on 30th June, 2026 (published numbers) stands as follows:

- Cash and cash equivalents: INR 2.86 Crores

- Readily redeemable investments INR 6.97 Crores

- Total accessible liquidity: Approximately INR 9.83 Crores as at the end of 30th June 2026

However, July 2026 has been the best performing month of the Company and the outlook of the management is positive.

The Company has proposed the reallocation of the funds amounting to INR 5 Crores towards unidentified acquisitions and INR 21.32 lakhs which is the surplus of amount allocated towards issue expenses. The entire amount of approximately INR 5.21 Crores is sought to be deployed towards the working capital, which can help to generate business returns rather than funds lying as investments. The proposed resolution in this regard shall be placed before the members at the 9th Annual General Meeting of the Company.

SEGMENT WISE PERFORMANCE

While for accounting purposes, neither the business nor the geographical segments meet the thresholds of revenue, results or assets as prescribed under AS-17, the Company continues to receive queries from investors requesting a break-up of revenue between the two brands - ‘LawSikho? and ‘Skill Arbitrage? and hence the details are being provided in this section.

The Company offers legal and compliance upskilling and test prep courses under the brand ‘LawSikho?.

While at the end of the year 2025-26, LawSikho courses contributed to approximately 31.6% of the revenue generated, the share of LawSikho courses has increased in the first quarter and the beginning of second quarter of 2026-27 on the foot of increase in the number of bootcamps conducted for these courses. These courses accounted for a revenue of approximately INR 24 Crores during the financial year 2025-26.

The Company conducts courses in accounting, personal branding, AI and business transformation etc. domains under the brand name ‘Skill Arbitrage?. While at the end of the year 2025-26, Skill Arbitrage courses contributed to approximately 66% of the revenue generated. These courses accounted for a revenue of approximately INR 50 Crores during the financial year 2025-26.

The services vertical of the Company contributed towards 2.5% of the total revenue at approximately INR 1.86 Crores during the financial year 2025-26.

Revenue in this vertical is generated through the Company?s proprietary services platforms - HelloParalegal, AccioFinance, AccioContent and AccioESOPs - through which the Company connects trained and verified professionals with businesses requiring specialised expertise. It is these platforms that account for the growth in services revenue during the year.

The corresponding figures for the immediately preceding financial year, as disclosed in the Management Discussion and Analysis Report for FY 2024-25, are set out below. Both years are presented on a consolidated basis.

Brand / vertical	FY 2025-26 (INR Cr)	% of revenue	FY 2024-25 (INR Cr)	% of revenue
LawSikho	24.00	31.6%	31.07	37.6%
Skill Arbitrage	50.00	66.0%	51.34	62.1%
Services vertical	1.86	2.5%	0.24	0.3%
Revenue from operations	75.72	100%	82.64	100%

Brand-wise figures are approximate management estimates and are not separately audited; they may not sum precisely to revenue from operations. The figures for FY 2024-25 are those reported in the

Management Discussion and Analysis Report for that year, namely INR 3,106.59 lakhs for LawSikho, INR 5,134.18 lakhs for Skill Arbitrage and INR 23.59 lakhs for the services vertical.

In proportionate terms, the share of LawSikho courses moved from 37.6% to 31.6% and that of Skill Arbitrage courses from 62.1% to 66.0% during the year, while the services vertical grew from 0.3% to 2.5% of revenue from operations.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Controls at the Company are built around three pillars: independent assurance, management accountability and, increasingly, technology. Independent assurance comes from the internal audit function, which works under the direction of the Audit Committee and reviews financial and operational controls across every process at defined intervals during the year. Management accountability follows from how those reviews are handled - each advisory observation and corrective recommendation is deliberated by the management team and taken to closure, rather than merely noted. The third pillar is the Companys growing use of technology-enabled and artificial intelligence-based tools, which are being introduced to widen monitoring coverage, take manual effort out of routine processes and flag potential risk indicators earlier than conventional methods allow. Judged against the scale and nature of the Companys operations as an SME-listed entity, the Board is satisfied that these arrangements are adequate and offer reasonable assurance on the integrity of financial reporting, compliance with the applicable legal and regulatory framework, and the safeguarding of assets - all of which underpin the Companys approach to transparent and responsible governance.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

(On a consolidated basis)

Ratio	FY2026	FY2025	Change %	Reason for change
Current Ratio	0.35	0.43	-19.54%	The current ratio declined primarily due to a significant increase in current liabilities, driven largely by higher advances received from students. Such advance collections are recognised as current liabilities until the related educational services are delivered. While the increase in advance receipts contributed to the decline in the current ratio, it reflects higher customer collections received in advance during the year.
Trade receivable ratio	103.66	152.79	-32.16%	The trade receivable ratio has improved as compared to last year as company has maintained its receivable cycle through efficient collection systems in place.
Debt-equity ratio	0	0	-	The Company had no outstanding debt as at the end of the financial year.
Net Profit Margin	-0.64%	12.95%	-104.92%	The change in this ratio is primarily due to reduction in profit after tax during FY 2025-26. The decline is attributable to the increase in expenses, including depreciation and amortisation expense from 708.65 lakh in FY2025 to 1,380.16 lakh in FY2026, driven by higher investment in intangible assets, which increased from 4,548.96 lakh to 6,423.76 lakh during the year.
Operating Profit Margin	-1.86%	13.70%	-113.61%	The decline is primarily attributable to the increase in amortisation expense from 708.65 lakh in FY2025 to 1,380.16 lakh in FY2026, reflecting the Companys increased investment in intangible assets, which grew from 4,548.96 lakh to 6,423.76 lakh.
Return on Net Worth	-0.61%	13.53%	-104.54%	The Company reported a loss on a consolidated basis during FY 2025-26 as against a profit in the previous year. The decline is attributable to the increase in expenses, including depreciation and amortisation, and to the change in estimate relating to revenue recognition described earlier in this Report. Return on Net Worth has been computed as profit after tax divided by net worth, being share capital together with reserves and surplus, as at the end of the respective year.
Interest Coverage ratio	-	-	-	Since there are no significant borrowings from banks or financial institutions, this ratio is not required to be calculated.
Inventory Turnover ratio	-	-	-	The Company is an e-learning and skilling platform and therefore this ratio does not apply to the Companys business.

DEPARTMENT WISE EMPLOYEES BREAK UP

Sr. No. Particulars	No. of employees (as on 31st March 2026)	No. of employees (as on 27th August 2026)
1 Content	9	7
2 Executive Office	3	2
3 Finance	1	2
4 Freelance Services	2	0
5 Human Resources	3	2
6 Company Secretarial	1	1
7 Marketing	1	0
8 Sales	13	13
9 Technology	1	0
10 Test Prep	5	2
Total	39	29

DEPARTMENT WISE CONSULTANTS BREAK UP

Sr. No. Particulars	No. of consultants (as on 31st March 2026)	No. of consultants (as on 27th August 2026)
1. Content	147	104
2. Executive Office	8	13
3. Finance	12	8
4. Freelance Services	29	8
5. Human Resources	17	11
6. Marketing	15	3
7. Sales	277	187
8. Technology	36	20
9. Test Prep	33	24
10. Operations	16	18
11. Support	19	14
12. Community	39	29
13. Legal and compliance	1	2
14. Bootcamp team	19	18
Total	668	459

No. of trainees as on 27 August 2026: 66 (of which 48 are in sales)

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Company?s objectives, projections, estimates, expectations, plans or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events over which the Company exercises no control. Actual results could differ materially from those expressed or implied, depending upon economic and market conditions in India and overseas, changes in government regulations, tax laws and other statutes, the cost and availability of digital advertising and changes in the policies or algorithms of the advertising platforms on which the Company relies, litigation and incidental factors, the availability and retention of qualified personnel and faculty, the receipt of regulatory and accreditation approvals in India and overseas, and other risks and uncertainties. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or event, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements. Figures relating to periods after 31 March 2026, and operational metrics not derived from the audited financial statements, represent unaudited management information.

For and behalf of the Board
For Addictive Learning Technology Limited
(Formerly Addictive Learning Technology Private Limited)
sd/-	sd/-
Ramanuj Mukherjee	Abhyudaya Agarwal
Managing Director	Whole Time Director
DIN: 05017261	DIN: 05016416
Date: 27th August, 2026
Place: Gurugram