Airan Ltd Management Discussions

Financial Year 2025–2026

1. Industry and Business Environment

FY 2025–26 continued to reshape the global IT, ITeS and business services landscape. Enterprises are increasingly looking beyond conventional outsourcing models and seeking partners that can combine domain knowledge, technology, process management and consulting capabilities.

Artificial intelligence and automation are also changing the economics of outsourcing. Routine activities are becoming increasingly technology-assisted, while clients are placing greater value on process redesign, data-led decision-making, regulatory understanding and specialised operational expertise. For Indian service providers, this creates an opportunity to move progressively up the value chain from manpower-led execution towards technology-enabled managed services and consulting-led engagements.

At the same time, global organisations continue to diversify their delivery models across geographies, creating opportunities for companies capable of providing consistent service standards across domestic and international markets.

2. Business Evolution and Strategic Direction

During FY 2025–26, Airan Limited continued to evolve its business around three interconnected capabilities — operations, technology and consulting.

The Company expanded the scope of several existing engagements, moving beyond individual processes towards broader and more integrated client relationships. Our growing experience across banking operations, transaction processing, trade-related services, workforce solutions and customer engagement has strengthened our ability to understand client operations as a whole rather than as isolated assignments.

Internationally, we continued to deepen our presence in the Asia-Pacific region. Our operations in Thailand expanded further and achieved greater integration with the local financial infrastructure ecosystem. The Group also continued to develop its international business through Airan Global, with increasing engagement across the United Kingdom and Australia.

Our objective is increasingly to use the knowledge accumulated through decades of process execution to help clients improve, redesign and transform the processes themselves.

3. Moving Up the Value Chain

The next phase of Airans growth is centred on becoming a more comprehensive business solutions partner. Our approach is evolving from asking "Which process can we execute?" to "Which business problem can we solve?"

This creates opportunities across:

• Consulting-led solutions combining domain knowledge with process redesign and implementation;

• Technology-enabled managed services where automation and software complement human expertise;

• Workforce and manpower solutions supporting large and distributed enterprise requirements;

• Customer experience operations, including an expanded presence in voice and contact-centre services;

• International knowledge services, particularly through our growing UK and Australian operations; and

• Banking and financial operations, where our longstanding sector experience provides a foundation for deeper and more sophisticated engagements. This evolution provides Airan with the opportunity to participate in a larger portion of the client value chain while strengthening the quality and longevity of client relationships.

4. Technology, Automation and AI

Technology is increasingly embedded across Airans delivery model.

During the year, the Company continued to strengthen internal software platforms and explore the practical integration of artificial intelligence into operational workflows. The emphasis remains on using technology where it can improve productivity, accuracy, visibility and scalability rather than adopting technology merely for its own sake.

Automation engines, intelligent workflow tools and AI-assisted applications are also creating opportunities to redesign traditionally manpower-intensive processes.

Going forward, Airan intends to combine its technology capabilities with its operational experience to develop customised solutions around real business requirements, particularly within banking, financial services and knowledge-process environments.

5. Material Developments in Human Resources / Industrial Relations:

The Company continues to maintain cordial and harmonious industrial relations across all levels. We recognize that our employees are our most valuable asset, and their dedication, skill, and commitment have been pivotal in driving the Companys growth and expansion.

As of March 31, 2026, the Company had a total workforce of 1512 employees. We have consistently fostered a culture of inclusivity, collaboration, and performance, while ensuring a safe and conducive work environment.

Our approach to human resources emphasizes merit-based recruitment, diversity, and equal opportunity. The Company is committed to building a diverse and inclusive workforce and continues to provide opportunities for professional development, skill enhancement, and employee engagement.

Going forward, the Company will continue to invest in human capital, focusing on employee well being, training initiatives, and fostering a high-performance culture aligned with our strategic objectives.

6. Opportunities

The Company sees significant opportunities arising from:

• Global demand for specialised and knowledge-led outsourcing;

• Increasing adoption of AI and automation within enterprise operations;

• Demand for partners capable of combining consulting, technology and execution;

• Expansion of banking and financial infrastructure across emerging Asian markets;

• Growth in managed workforce and customer-experience solutions;

• Greater outsourcing opportunities in the UK and Australia; and

• Increasing preference among large enterprises for fewer, deeper and more strategic service-provider relationships. Airans existing domain experience, long-standing client relationships and expanding international presence provide a strong foundation from which to address these opportunities.

7. Risks/Threat and Challenges

The industry continues to face challenges arising from rapid technological change, cybersecurity and data-protection requirements, pricing pressure, talent availability and evolving regulations across different jurisdictions.

AI itself represents both an opportunity and a disruption to traditional outsourcing models. The Company therefore recognises the importance of continuously upgrading its technology, workforce capabilities and commercial models. Geographic expansion also introduces additional regulatory and execution complexity, making strong governance and local understanding increasingly important.

8. Internal Controls and Operational Resilience

As the scale and complexity of operations increase, Airan continues to place emphasis on internal controls, information security, process governance and business continuity.

The Company periodically reviews its operational and financial controls in line with changes in business requirements and regulatory expectations. Greater digitisation of internal processes is also improving visibility and accountability across operations.

The Company remains focused on maintaining appropriate controls proportionate to its expanding geographic footprint and service portfolio.

9. Human Capital

Airans growth continues to depend upon the quality and adaptability of its people. As engagements become more specialised, the skill mix required within the organisation is also changing.

The Company increased its workforce capabilities during the year while continuing to develop domain knowledge, technology familiarity and client-management skills across teams.

Our long-term objective is to build teams capable not only of executing defined processes, but also of understanding client businesses, identifying improvements and participating meaningfully in transformation initiatives.

10. Outlook

Airan enters FY 2026–27 with a broader ambition.

The opportunity before us is not simply to process more transactions or deploy more people. It is to use our experience, technology and international reach to solve larger and more valuable business problems.

The Company intends to deepen existing relationships, expand selectively across international markets and progressively increase the contribution of consulting-led, technology-enabled and managed solutions to its overall business.

Our long-term direction is clear: to evolve from a trusted outsourcing partner into a trusted transformation partner. 11. Internal Control System and Their Adequacy

The Company has established adequate internal control systems commensurate with the nature, size and complexity of its business.

These controls are designed to ensure the orderly and efficient conduct of operations, safeguarding of assets, accuracy and reliability of financial reporting, and compliance with applicable laws, regulations and internal policies. The Company has a well-defined delegation of authority and standardized operating procedures to ensure effective monitoring and control over business processes. The internal control framework is periodically reviewed and strengthened to address changing business requirements and ensure operational efficiency. The Management believes that the existing internal control systems are adequate and effective for the Companys operations.

12. Discussion on Financial Performance with respect to Operational Performance:

Particulars	Standalone		Consolidated
	Year ended March 31, 2026	Year ended March 31, 2025	Year ended March 31, 2026	Year ended March 31, 2025
Revenue from operations	10,137.08	9,407.52	11,223.74	10649.84
Other Income	577.39	1,029.51	729.42	1113.21
Total Income	10,714.47	10,437.03	11,953.16	11763.05
Operating expenditure before Finance cost, depreciation and amortization	8836.59	7856.99	9796.9	8840.21
Earnings before Finance cost, depreciation and amortization (EBITDA)	1877.88	2580.04	2156.26	2922.84
Less: Finance costs	427.93	431.29	533.75	551.31
Depreciation and amortization expense Profit before tax	1449.95	2148.75	1622.51	2371.53
Less: Tax expense	338.05	468.14	391.84	494.97
Add: Total Other Comprehensive income	(39.41)	(7.94)	(44.81)	(19.54)
Profit for the year (PAT)	1,058.14	1672.67	1171.15	1857.02

*Company is operational in single segment.

13. Details of significant changes in key financial ratio, along with detailed explanations:

Ratios	Numerator	Denominator	For the year ended March 31, 2025	For the year ended March 31, 2026	Change in Percentage	Reason
Current ratio (in times)	Total current assets	Total current liabilities	4.96	5.00	0.82	-
Debt - Equity ratio (in time)	Debt consists of borrowings and lease liabilities	Total equity	0.004	-	-	-
Debt service coverage ratio (in times)	Earning for debt Service = Net Profit after taxes + Non-cash operating expenses + Interest + Other non-cash adjustments	Debt service = Interest and lease payments + Principal repayments	504.28	13.59	-97.30	Due to decrease in Loans
Return on equity ratio (in %)	Profit for the year less Preference dividend (if any)	Average total equity	13.67	8.04	-41.19	Due to decrease in Profits during the year
Trade receivables turnover ratio (in times)	Revenue from operations	Average trade receivables	4.04	4.72	16.84	-
Trade payables turnover ratio (in times)	Direct expenses + Other expenses	Average trade payables	12.31	14.69	19.30	-
Net capital turnover ratio (in times)	Revenue from operations	Average working capital (i.e. Total current assets less Total current liabilities)	2.01	1.78	-11.72	-
Net profit ratio (in %)	Profit for the year	Revenue from operations	17.86	10.83	-39.39	Due to Decrease in Profits during the year
Return on Capital employed (in %)	Profit before tax and finance costs	Capital employed = Net worth + Lease liabilities + Deferred tax liabilities	15.59	9.78	-37.29	Due to Decrease in Profits during the year
Return on investment (in %)	Income generated from invested funds	Average invested funds	23.97	13.92	-41.96	-

14. Disclosure of Accounting Treatment

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard ("IND-AS") notified under the Companies (Indian Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.

Registered office:	For and on behalf of Board of Directors
408, Kirtiman Complex, B/h. Rembrandt Building,	Airan Limited
C. G. Road, Ahmedabad, Gujarat-380006.	CIN: L74140GJ1995PLC025519
Date : August 31, 2026	Sandeepkumar Vishwanath Agrawal
Place : Ahmedabad	Chairman and Managing Director
	DIN 02566480