Adroit Infotech Ltd Management Discussions

OVERVIEW OF THE ECONOMY

INDUSTRY STRUCTURE ANDDEVELOPMENTS:

The global Information Technology (IT) industry continues to undergo rapid transformation, driven by advancements in Artificial Intelligence (AI), Generative AI, cloud computing, cybersecurity, data analytics, automation, Internet of Things (IoT), blockchain and intelligent enterprise solutions. Organisations across industries are increasingly leveraging digital technologies to improve operational efficiency, enhance customer experience, optimise costs and accelerate business innovation.

The widespread adoption of cloud-native platforms, Software-as-a-Service (SaaS), enterprise resource planning (ERP), intelligent automation and AI-powered business applications is fundamentally changing the way enterprises design, manage and scale their operations. At the same time, increasing cyber threats and evolving regulatory requirements have heightened the focus on information security, data privacy and resilient digital infrastructure.

The rapid pace of technological innovation and the increasing complexity of enterprise IT environments have significantly increased the demand for specialised technology consulting, implementation, application management and managed services. Businesses are increasingly partnering with experienced technology service providers to support cloud migration, enterprise application modernisation, AI adoption, cybersecurity, digital engineering and business process transformation.

India continues to strengthen its position as a global technology and innovation hub, supported by a large pool of skilled professionals, robust digital infrastructure and favorable government initiatives such as Digital India, Make in India and the rapid adoption of Artificial Intelligence and emerging technologies. The Indian IT industry remains well-positioned to benefit from sustained global demand for digital transformation, enterprise modernisation, cloud services, cybersecurity and intelligent automation solutions.

The Company continues to align its service offerings with these evolving industry trends by delivering enterprise software solutions, digital transformation services, managed services and technology consulting, enabling customers to achieve operational excellence, business agility and sustainable growth

GLOBAL DELIVERY MODEL

The Company follows a scalable Global Delivery Model that integrates onsite, offshore and remote delivery capabilities, enabling efficient utilisation of global talent and resources. Supported by standardised delivery processes, agile methodologies and secure digital collaboration platforms, the delivery model enables timely execution of projects, operational flexibility, business continuity and cost optimisation.

The Company continues to enhance its delivery capabilities through process automation, cloud-based collaboration, DevSecOps (Development, Security, and Operations) practices and digital project management tools, thereby improving productivity, quality and customer experience.

OPPORTUNITIES AND THREATS OUR STRENGTHS

The Company continues to leverage its technology expertise, customer-centric approach and scalable delivery capabilities to strengthen its competitive position in an increasingly digital and technology-driven business environment. Our focus on innovation, operational excellence and long-term customer relationships enables us to deliver sustainable value to clients across diverse industry segments.

OUR KEY STRENGTHS INCLUDE:

Technology and Digital Transformation Expertise

The Company provides comprehensive technology consulting and digital transformation solutions that enable customers to modernize their IT landscape, optimize business processes and accelerate digital adoption. Our capabilities span enterprise applications, cloud technologies, managed services, automation, data analytics, artificial intelligence (AI), system integration and application lifecycle management.

Strong Consulting and Domain Knowledge

Our experienced professionals possess deep industry, functional and technology expertise, enabling us to understand complex business challenges and deliver innovative, scalable and value-driven solutions. We partner with our clients to improve operational efficiency, enhance business agility, optimize costs and achieve measurable business outcomes.

Comprehensive Service Portfolio

The Company offers an integrated portfolio of end-to-end technology solutions and services, including: Technology consulting and digital transformation;

Enterprise application implementation and support; SAP consulting and managed services;

Custom application development and modernization; Application maintenance and production support; Cloud migration and cloud-managed services; Infrastructure management services;

Data integration, analytics and automation solutions; Product engineering and software lifecycle management; and Business process and technology support services.

This diversified service portfolio enables the Company to address evolving customer requirements and build long-term strategic partnerships .

Scalable Global Delivery Capabilities

Our Global Delivery Model combines skilled professionals, standardized delivery processes, agile methodologies and secure digital infrastructure to deliver high-quality solutions efficiently across multiple geographies. This enables faster project execution, operational flexibility, cost optimization and consistent service delivery.

Customer Relationships and Trusted Brand

The Company has established long-standing relationships with customers across various industry sectors by consistently delivering quality solutions and reliable services. Our commitment to customer satisfaction, timely project execution and continuous innovation has strengthened our reputation as a trusted technology partner and contributed to high customer retention and repeat business.

Focus on Innovation and Operational Excellence

The Company continuously invests in emerging technologies, process improvements, employee capability development and quality management practices to enhance service delivery and operational efficiency. We remain committed to adopting industry best practices and technology innovations that enable our clients to achieve sustainable business growth .

Opportunities

The increasing adoption of digital technologies, Artificial Intelligence (AI), cloud computing, enterprise automation, cybersecurity solutions and data-driven decision-making continues to create significant growth opportunities for the Company. The growing demand for digital transformation, enterprise application services, managed services and cloud-based solutions across domestic and international markets provides a strong platform for expanding the Companys business.

Threats

The Company operates in a highly competitive and rapidly evolving technology landscape. Key challenges include intense competition from global and domestic IT service providers, rapid technological advancements, cybersecurity threats, evolving regulatory requirements, talent acquisition and retention, pricing pressures and global macroeconomic uncertainties. The Company continues to address these challenges through continuous innovation, investments in employee capabilities, robust risk management practices and a customer-focused business strategy.

OUR STRATEGY

The Companys strategy is focused on achieving sustainable and profitable growth by strengthening customer relationships, enhancing service capabilities and delivering long-term value to all stakeholders. The Company continues to align its business objectives with evolving market dynamics and technological advancements while maintaining operational excellence and financial discipline.

The strategic priorities of the Company include:

? Strengthening existing customer relationships while expanding the customer base across domestic and international markets.

? Enhancing service offerings through continuous innovation and adoption of emerging technologies in line with evolving customer requirements.

? Improving operational efficiency through process optimisation, effective resource utilisation and digital enablement.

? Investing in employee capability development to build a highly skilled and future-ready workforce.

? Maintaining a strong governance framework, effective risk management practices and robust internal controls to support sustainable business growth.

? Pursuing strategic partnerships and business opportunities that complement the Companys core competencies and enhance long-term shareholder value.

? Focusing on prudent financial management, profitability and sustainable value creation through disciplined execution and customer-centric delivery.

The Company remains committed to executing its growth strategy with agility and resilience while adapting to changing business environments and creating long-term value for its customers, employees, investors and other stakeholders.

THESE TRANSLATE TO THE FOLLOWING STRATEGIC FOCUS AREAS:

Strategic Focus Areas

To achieve its long-term strategic objectives, the Company continues to focus on the following key strategic priorities:

Strengthening Customer Relationships

The Company is committed to deepening its engagement with existing customers while expanding its presence across new industry segments and geographies. The focus remains on delivering customer-centric solutions, enhancing service quality and building long-term strategic partnerships through consistent execution and value creation.

Expanding Service Capabilities

The Company continues to strengthen its portfolio of technology solutions and services by enhancing its capabilities in enterprise applications, digital transformation, managed services and emerging technology solutions. This enables the Company to address evolving customer requirements and create new business opportunities.

Operational Excellence

Continuous improvement in operational efficiency remains a key focus area. The Company regularly reviews its business processes, governance framework and delivery practices to improve productivity, optimise resource utilisation, strengthen quality standards and enhance overall business performance.

Innovation and Technology Enablement

The Company continues to invest in innovation, process automation and technology enablement to improve service delivery, accelerate execution and enhance customer experience. The focus remains on adopting industry best practices and leveraging technology to create sustainable business value.

People and Organisational Development

Recognising that its employees are its most valuable asset, the Company continues to invest in talent acquisition, capability development, leadership development and employee engagement initiatives. The Company strives to foster a collaborative, inclusive and performance-oriented work environment that encourages continuous learning and innovation.

Sustainable Growth and Value Creation

The Company remains committed to pursuing sustainable and profitable growth through disciplined financial management, prudent capital allocation, strategic partnerships and selective business opportunities that complement its core competencies and support long-term shareholder value creation.

OUR COMPETITION

We experience intense competition in traditional services and see a rapidly-changing marketplace with new competitors arising in new technologies who are focused on agility, flexibility and innovation. We typically compete with other technology services providers in response to requests for proposals.

Clients often cite our industry expertise, comprehensive end-to-end solutions, ability to scale, superior quality and process execution, Global Delivery Model, experienced management team, talented professionals and track record as reasons for awarding us contracts.

The Information Technology services industry remains highly competitive, with global technology companies, specialised consulting firms, digital engineering organisations and emerging technology startups competing across various service segments.

The Company differentiates itself through its customer-centric approach, domain expertise, quality-focused execution, flexible delivery capabilities and commitment to building long-term customer partnerships. The Company continues to invest in capability enhancement and operational excellence to strengthen its competitive position.

OUTLOOK, RISKS AND CONCERNS; OUTLOOK:

The long-term outlook for the Information Technology industry remains positive, supported by increasing enterprise investments in digital transformation, cloud adoption, cybersecurity, intelligent automation and enterprise applications.

The Company remains optimistic about its growth prospects and will continue to focus on strengthening customer relationships, expanding service offerings, improving operational efficiency and delivering sustainable value to stakeholders while maintaining financial discipline and effective risk management.

RISKS AND CONCERNS:

The Company has established an enterprise-wide risk management framework to identify, assess, monitor and mitigate business risks on a continuous basis.

Key risks monitored by the management include:

? strategic and business risks;

? technology and cybersecurity risks;

? operational and project execution risks;

? regulatory and compliance risks;

? financial and foreign exchange risks;

? human resource and talent management risks; and

? customer concentration and market risks.

The Board of Directors and the Audit Committee periodically review the Companys risk management framework and mitigation initiatives to ensure business resilience.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal financial controls and an effective internal control framework commensurate with the size, nature and complexity of its operations. The internal control systems are designed to safeguard assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws, regulations and internal policies.

The Internal Auditor conducts periodic risk-based audits in accordance with the annual internal audit plan approved by the Audit Committee. Audit observations and recommendations are reviewed by the Audit Committee, and appropriate corrective actions are implemented by the management.

The Company continuously reviews and strengthens its internal control environment to support sound corporate governance.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE -STANDALONE & CONSOLIDATED

Standalone Performance

During the Financial Year 2025-26, the Company recorded standalone revenue from operations of ?883.86 Lakhs and reported a loss of ?37.43 Lakhs .

Consolidated Performance

On a consolidated basis, the Company recorded revenue from operations of ?5,186.53 Lakhs and a profit after tax of ?470.96 Lakhs during the Financial Year ended 31 March 2026.

The management remains focused on improving operational efficiency, enhancing profitability and creating sustainable value through disciplined execution and prudent financial management.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES.

The Company firmly believes that its employees are its most valuable asset and the cornerstone of its long-term success. The Company continues to invest in talent acquisition, learning and development, leadership development, employee engagement and performance management initiatives to build a skilled, motivated and future-ready workforce.

Employee relations remained cordial throughout the year. The Company continues to provide a safe, inclusive and healthy workplace while ensuring compliance with applicable labour laws and promoting a culture of integrity, collaboration and continuous learning

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions 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 changes in economic conditions, market conditions, technological developments, government policies, taxation, foreign exchange fluctuations, competitive pressures, geopolitical developments, natural calamities and other factors beyond the Companys control. The Company undertakes no obligation to publicly update any forward-looking statements except as required under applicable laws

Key Financial Ratios

Sl. No	Particulars	Year Ended 31- 03- 2026	Year Ended 31- 03- 2025	Variance
a	Current Ratio (Current Assets / Current Liabilities)	2.18	2.85	- 23.55%
b	Debt-Equity Ratio, (Non- Current Borrowings+ Current Borrowings)/Total Equity	0.37	0.21	77.96%
c	Return on Equity Ratio ROE = (Net Earnings / Shareholders Equity) x 100	- 0.11	0.01	- 1429.46%
d	Trade Receivables turnover ratio (Sales (net of discounts) / Average Trade Receivables)	0.80	1.11	- 27.93%
e	Net capital turnover ratio (Net annual sales / Working capital) the working capital is calculated by subtracting a companys current liabilities from its current assets	0.18	0.25	-- 26.51%
f	Net profit ratio Net profit after Tax / Net sales) x 100	- 14.26	0.78	- 1938.95%
g	Return on Capital employed, (Earnings before interest and taxes (EBIT), by (capital employed) (Capital Employed = Total Assets - Current Liabilities)	2.34%	4.92%	- 52.40%

COMPLIANCE CERTIFICATE

(Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Board of Directors, Adroit Infotech Limited

Dear members of the Board,

We, Sudhakiran Sunkerneni Reddy, Managing Director and Ravichandra Rao Badanidiyoor (CFO) of Adroit Infotech Limited certify that:

? We have reviewed Financial Statements and the Cash Flow Statement for the year ended March 31, 2026 and that to the best of our knowledge and belief:

? These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

? These statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

? To Their best of Knowledge and belief, no transactions entered into by the company during the year which are fraudulent, Illegal or violate of the Companys code of conduct.

? We accept responsibility for establishing and maintaining internal controls for Financial Reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to Financial Reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

? We have indicated to the Auditors and the Audit Committee.

? Significant changes in internal control over Financial Reporting during the year;

? Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the Financial Statement; and

? Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Companys internal control system over Financial Reporting.

By Order Of The Board For Adroit Infotech Limited

	Sd/-	Sd/-
Place: Hyderabad	Ravichandra Rao Badanidiyoor	Sudhakiran Sunkerneni Reddy
Date: 20 th July, 2026	Chief Financial Officer	Managing Director
		DIN: 01436242