Adisoft Technologies Ltd Management Discussions

INDUSTRY STRUCTURE & DEVELOPMENTS

The technology industry continues to evolve rapidly, driven by increasing digitalization, cloud adoption, artificial intelligence, automation, data analytics, cybersecurity, digital platforms and the growing demand for technology- enabled business solutions.

Businesses across sectors are increasingly investing in digital technologies to improve operational efficiency, enhance customer experience, optimise costs and strengthen decision-making capabilities. The increasing adoption of cloud-based solutions, software platforms, automation and emerging technologies is creating opportunities for technology companies to develop new products and services.

At the same time, the industry remains highly competitive and is subject to rapid technological changes. Companies operating in this sector are required to continuously upgrade their capabilities, invest in technology and skilled personnel, and respond effectively to changing customer requirements.

Market leaders from focus sectors have recently announced plans of massive expansion over the next 5 years. With its strong standing and robust solution base, the management is confident of capitalizing on this huge opportunity in the upcoming years.

The Management truly believes that continued digital transformation and technology adoption will provide opportunities for companies with appropriate technical capabilities, service offerings and customer relationships.

BUSINESS OVERVIEW

Adisoft Technologies Limited is an industrial digital automation company with 13+ years of experience, offering automated assembly lines, robotic work cells, material handling systems, special purpose machines (SPMs) and Industry 4.0 solutions. The company integrates shop-floor equipment and processes with the IT layer to reduce human intervention, supported by in-house design, development, assembly and testing capabilities. It serves automotive, automotive OEM, packaging & printing, pharmaceutical and other industrial sectors.

IPO AND CAPITAL STRUCTURE

Subsequent to the closure of the financial year 2025-26, the Company successfully completed its Initial Public Offering (IPO), pursuant to which it issued 43,08,000 equity shares. Consequently, the paid-up equity share capital of the Company increased from ^12,01,00,000 to ^16,31,80,000.

Following the successful completion of the IPO, the equity shares of the Company were listed on the National Stock Exchange of India Limited (NSE) on 30 April 2026.

The successful completion of the Initial Public Offer (IPO) has significantly strengthened the Companys capital structure, enhanced its net worth, improved liquidity and increased its visibility and credibility in the capital market. The funds raised through the IPO will support the Companys growth strategy by enabling investment in business expansion, strengthening execution capabilities, augmenting working capital, enhancing operational

efficiencies and pursuing new business opportunities in line with the objects of the Issue. The strengthened financial position also provides greater flexibility to capitalize on future growth opportunities and create longterm value for stakeholders.

OPPORTUNITIES

The continuing digital transformation of businesses presents significant opportunities for technology companies.

The key opportunities available to the Company include:

- Increasing adoption of digital solutions by businesses.

- Growth in cloud-based technology services.

- Increasing demand for automation and artificial intelligence-enabled solutions.

- Expansion into new customer segments and geographies.

- Development of new technology-enabled products and services.

- Increased demand for cybersecurity and data protection solutions.

- Opportunities arising from partnerships and strategic collaborations.

- Improving operational efficiency through technology and automation.

- Availability of IPO proceeds to support future business expansion.

Management remains confident of sustaining growth momentum through operational excellence, strategic business development and prudent financial management

OUTLOOK

The Companys strengthened capital base following the successful Initial Public Offer (IPO) provides financial flexibility to pursue future growth opportunities, expand geographical presence, diversify its client base and enhance execution capabilities.

The management remains focused on sustainable growth through prudent financial management, technological adoption, operational excellence and customer-centric service delivery while maintaining strong corporate governance standards.

RISKS & CON CERNS

The Company continuously evaluates risks associated with its operations and has established suitable mitigation mechanisms.

Major risks include:

a. Project execution delays.

b. Regulatory and compliance risks.

c. Competition from established industry participants.

d. Client concentration and collection risks.

e. Inflationary pressure on operating costs.

f. Economic slowdown affecting infrastructure spending.

g. Human resource retention and skill availability.

The Company has established a structured risk management framework for identification, assessment, monitoring and mitigation of business risks. The Board of Directors and Senior Management periodically review the risk management framework to identify emerging risks and ensure that appropriate mitigation measures are implemented in a timely manner. The Company continuously monitors its internal and external business environment to strengthen its resilience and support sustainable long-term growth.

CORPORATE SOCIAL RESPONSIBILITY

In accordance with Section 135 of the Companies Act, 2013, the Company spent Rs. 30 Lakhs towards CSR activities during FY 2025-26 against the prescribed CSR obligation of Rs. 30 Lakhs. CSR initiatives were undertaken in the areas defined in Schedule VII of the Companies Act 2013, The company remains committed to creating sustainable value for society through impactful CSR initiatives in accordance with its CSR Policy and the provisions of the Companies Act, 2013.

INTERNAL CONTROL SYSTEMS

The Company has adequate internal control systems commensurate with the nature, size and complexity of its operations. Internal controls are designed to ensure:

a. Protection and safeguarding of assets.

b. Accuracy and reliability of accounting records.

c. Compliance with statutory requirements.

d. Prevention and detection of frauds and errors.

e. Efficient utilization of resources.

The Audit Committee regularly reviews internal financial controls, audit observations and corrective actions undertaken by the management.

FINANCIAL HIGHLIGHTS

The Companys key financial indicators remained strong during FY 2025-26:

TECHNOLOGY & DIGITAL INITIATIVES

The Company continues to leverage digital technologies to improve project execution, operational efficiency and customer service. The management remains committed to adopting modern automation engineering tools, Robotics digital project monitoring systems and technology-enabled business processes.

HUMAN RESOURCES

The Company firmly believes that its employees are its most valuable asset and continues to invest in human capital through training, skill enhancement, leadership development and professional growth initiatives. The Company promotes a performance-driven work culture founded on integrity, innovation, teamwork, equal opportunity, employee engagement and workplace safety.

The management remains committed to fostering a safe, inclusive and motivating work environment that encourages continuous learning and sustainable growth

C AUTIONARY STATEMENT

Certain statements contained in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates, projections and outlook may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, changes in Government policies, market developments, competition, regulatory changes and other risks beyond the control of the Company.