Alankit Ltd Management Discussions

The global economy is gradually stabilizing in 2025 as in lationary pressures ease, supply chain disruptions normalize, and major Western central banks move toward interest rate cuts that began in late 2024. While growth in advanced economies remains subdued, emerging markets led by India and Southeast Asia continue to demonstrate resilience. The International Monetary Fund (IMF) projects global GDP growth to remain in the 3% range in 2025, with risks largely balanced between geopolitical tensions and faster-than-expected disin_lation.

Indian Economic Outlook

India remains the worlds fastest-growing major economy, consolidating its position as a global growth driver. The nation is expected to emerge among the top three global economies by the end of this decade, underpinned by structural reforms, strong consumption, digital transformation, and robust partnerships in trade and technology.

For FY 2024 25, Indias growth momentum remains healthy:

Real GDP growth is estimated at 6.5%, moderating from the high base of 8.2 8.3% in FY 2023 24, yet signi icantly above the global average. Nominal GDP is projected to expand by around 9.5 9.8%, supported by stability in commodity prices and domestic demand. Gross Value Added (GVA) is likely to grow 6.4% YoY, re lecting broad-based momentum across agriculture, industry, and services.

Strong macroeconomic fundamentals including healthy foreign exchange reserves, moderating in lation, _iscal consolidation, and growing FDI in lows continue to reinforce Indias standing as a preferred investment destination.

E-Governance Industry Overview

Indias e-Governance ecosystem has witnessed consistent advancement, with state governments, universities, private service providers, technology startups, and research institutions working to expand digital public infrastructure and citizen service delivery.

According to the United Nations E-Government Survey 2024, Indias E-Government Development Index (EGDI) rank improved to 97th (from 100th in 2020), underscoring continued progress in digital platforms, accessibility, and inclusiveness. While the updated E-Participation Index for 2024 is awaited, incremental gains are expected, building on Indias earlier 29th rank in 2020.

Over the years, numerous initiatives by State Governments and Central Ministries have helped usher in the era of e-Government in India. Sustained efforts at various levels have aimed to enhance public service delivery and simplify access for citizens.

The Government of Indias _lagship programs Digital India, Smart Cities Mission, BharatNet, National e-Governance Plan (NeGP), and the India Stack digital public infrastructure collectively provide the backbone for digital-_irst governance and service access. These initiatives emphasize:

Citizen-centricity & transparency in service delivery.

Shared digital infrastructure that lowers costs and improves scalability.

Standardized frameworks that ensure platform interoperability across ministries and states. A programmatic, uni_ied strategy that integrates national, state, and local government efforts.

Indias e-Governance journey has successfully evolved from initial computerization to robust, AI-enabled, mobile-_irst platforms, enabling millions of citizens to access services seamlessly. The integration of Aadhaar, UPI, DigiLocker, and CoWIN -type frameworks has created global benchmarks for scalable digital governance.

Company Overview

Alankit Limited, the _lagship company of the Alankit Group, is a leading e-Governance service provider in India with a strong presence in both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). With more than three decades of expertise, the company has built a reputation for delivering technology-driven, ef icient, and citizen-focused solutions. Its wide-ranging services are designed to promote _inancial inclusion, simplify government-to-citizen interactions, and ensure last-mile accessibility through a robust national network.

The company operates with a diversi ied portfolio covering Business Correspondent Services, PAN services, GST solutions, Aadhaar services, and attestation and apostille support. As a Business Correspondent for 9 leading banks, Alankit manages over 4,500 million in transactions with 0.9 million monthly transactions through its 2,300+ Customer Service Points (CSPs). In PAN services, the company has processed more than 95 million applications, including new requests, corrections, and instant PAN issuance, making it a trusted name across the country.

Alankit is also a trusted GST Suvidha Provider (GSP), offering seamless and reliable GST solutions through robust API integration and management. It stands as the second-highest API consumer in GSTN with over 20 crore API transactions, highlighting its technological strength and ef iciency. In Aadhaar services, the company has successfully facilitated over 43 million registrations, updates, and corrections, enabling millions of citizens to access critical government and _inancial services with ease.

The company is also authorized by the Ministry of External A airs to provide attestation and apostille services through 17 centres across India. In addition, it has strengthened its role in _inancial services through its extensive associate network for NPS enrolments, ensuring broader outreach and accessibility. With advanced capabilities in biometric identity management, document validation, and real-time MIS reporting, Alankit ensures high-quality, transparent, and reliable service delivery across sectors.

With a customer base of over 100 million, 25 regional of ices, and more than 10,000 service points nationwide, Alankit continues to drive large-scale transformation in e-Governance and _inancial inclusion. The companys success is powered by its in-house technology team, advanced digital infrastructure, and a commitment to seamless, scalable, and integrated solutions. Its strong legacy and future-focused approach position Alankit as a trusted partner for individuals, businesses, and government bodies across India.

Vision Statement

To become a distinguished and quality-focused service provider in all the sectors we operate in, setting new benchmarks for excellence, innovation, and impact within the industry.

Mission Statement

The Mission Statement is consistent with Alankit Limiteds current positioning and strategic focus in 2025, based on publicly available information and recent company data. Its emphasis on being a customer-centric organization built on trust and delivering high standards of service excellence aligns with Alankits longstanding values and market messaging. This focus reinforces the companys commitment to providing reliable and quality services across its operations.

The Mission Statement also highlights digital transformation, the adoption of modern technologies, AI, and automation, re lecting Alankits strategic thrust in recent years. These initiatives support the companys efforts to maintain leadership in the e-Governance and _inancial services sectors. The breadth of offerings mentioned, including PAN Services, Business Correspondent services, Income Tax Return services, and Aadhaar services, accurately represents the companys diverse portfolio and operational scope.

Additionally, the statement underscores collaboration with government departments and a commitment to transparency, ef_iciency, and accessibility, which mirrors Alankits core operational philosophy as a trusted G2C service provider. Its tone, expres sing con idence in growth despite macroeconomic challenges, aligns with recent performance trends and commentary from 2024-25.

Identity and Access Management (IAM) Smart ID

The adoption of Smart ID cards as a primary authentication method has grown rapidly across the country. Responding to the increasing demand for plastic identity cards, Alankit, as the national distributor, offers instant and reliable printing solutions. The company manages the distribution of millions of cards, including voter ID cards, Aadhaar cards, and health cards. Over the years, Alankit has achieved signi icant sales of ID card printers, supporting the expanding identity and access management segment.

Attestation Services (MEA)

The Ministry of External A airs, Government of India, has entrusted Alankit with managing the administrative responsibilities of Attestation and Apostille services across the country. Through this engagement, Alankit provides a complete suite of services including MEA Attestation, Apostille Attestation, and HRD Attestation. These services are delivered in a streamlined and ef icient manner, offering clients transparency, speed, and convenience.

Business Correspondent Services (Kiosk Banking)

The rapid advancement in technology and the shift toward digital payments have unlocked new opportunities for _inancial inclusion, particularly among underserved communities. Alankit has made a signi icant impact in this space by partnering with 9 of Indias leading banks, including State Bank of India, Punjab National Bank, Central Bank of India, Bank of Baroda, Union Bank of India, UCO Bank, Uttarakhand Gramin Bank, Indian Bank, and Kotak Mahindra Bank.

As a Business Correspondent, Alankit helps extend banking access to remote and rural populations. The company appoints Customer Service Points using remote biometric-enabled technology, enabling customers to enroll and conduct transactions securely and ef iciently. This model enhances the delivery of financial services and promotes inclusive banking across the nation.

GST Compliance Solutions

Alankit is recognized as a leading integrated service provider offering a full range of GST compliance solutions. With a strong national network and a focus on innovation, the company supports Application Service Providers with high-performance services such as robust API gateway management, failure handling mechanisms, enriched APIs, and responsive callbacks via the Platinum Gateway.

In addition to technical support, Alankit offers end-to-end services for GST registration and consultancy. These services are designed to simplify compliance, improve transparency, and contribute to a more business-friendly environment.

To support the smooth implementation of the Goods and Services Tax across various sectors in India, Alankit has introduced three comprehensive GST solutions available via mobile and web-based platforms:

API Solutions (Pass Through)

GST Smart Muneemji Software, e-Raahi, and e-Invoicing Cloud-based ERP for Billing and e-Invoicing

These solutions are designed to work seamlessly with any ERP system including SAP, Oracle, and Microsoft Dynamics. By increasing compliance and awareness, Alankit ensures that businesses are equipped with ef icient and reliable tools for GST management.

PAN Services

Alankit Limited is a leading provider of Financial and e-Governance services in India, delivering a wide range of citizen-centric solutions through both digital platforms and an extensive network of physical service centres. With over three decades of industry experience, the company specializes in enhancing access to government and inancial services such as PAN card issuance, digital signatures, income tax _iling, Aadhaar services, and more. Leveraging modern technologies including arti icial intelligence and automation, Alankit drives digital transformation to simplify administrative processes and improve service ef iciency across urban and rural areas.

Manpower and Staf ing Management

Alankit delivers customized manpower and staf ing solutions tailored to the unique needs of various organizations, with a strong focus on government departments. Our staf ing services enhance workforce agility and operational ef iciency. In addition, Alankit offers professional training and development programs designed to align organizational learning with business objectives. These programs are developed by experts to empower individuals and enhance talent capabilities across functions.

Digital Signature Certi icates

Through its subsidiary Verasys Limited, Alankit provides innovative and secure Digital Signature Certifiicate (DSC) services. Verasys is a certi ied Certifying Authority (CA) licensed by the Controller of Certifying Authorities (CCA) and specializes in issuing DSCs based on Aadhaar e-KYC, enabling a fast, paperless, and convenient digital signature solution. Our dedicated team is committed to delivering technology-driven electronic signature services that simplify client operations and improve ef iciency in todays evolving digital environment.

Payment Solutions

With deep expertise in the payment domain, Alankit offers modern card payment solutions to businesses of all sizes. By combining advanced technology with a customer-_irst approach, we ensure secure and seamless gateway processing that supports ef icient transactions.

MOSIP Credential Partner

Alankit is proud to be an enlisted credential partner with the Modular Open Source Identity Platform. This recognition places us within an ecosystem focused on developing digital identity systems that are secure, scalable, and customized to the speci ic needs of different regions and populations.

Aadhaar Services

With extensive reach and years of operational experience, Alankit delivers Aadhaar-related services through a wide network of centres across India. Millions of citizens have been successfully enrolled under the Aadhaar scheme through our ef icient and transparent processes.

Atal Pension Yojana

Alankit supports the Government of Indias mission to build a pensioned society through the Atal Pension Yojana (APY) by providing services primarily through its Customer Service Points (CSPs). This scheme encourages individuals, especially from financially vulnerable populations, to save modest amounts during their working years in exchange for a guaranteed monthly pension of up to _ive thousand rupees in old age. Alankits CSP network enables secure and convenient enrollment, contribution management, and assistance, thereby promoting social security and _inancial inclusion across rural and remote areas. This initiative aligns with Alankits commitment to bridging the gap between citizens and government services with transparency and ef iciency.

Opportunities

The evolving policy landscape, digital transformation, and untapped rural markets present signi icant opportunities for Alankits continued growth and innovation.

Government Initiatives

Recent policy measures and reforms introduced by both Central and State Governments have opened new avenues for the growth of the e-Governance sector. Alankit is well-positioned to bene it from these initiatives through its service offerings and domain expertise.

Digital Transformation

With a shift in consumer behavior towards digital platforms for accessing services and engaging with brands, maintaining a strong and meaningful online presence has become essential. Alankit is actively investing in digital content, social media engagement, and mobile and web applications. The company leverages AI-driven solutions, including chatbots, to provide instant support, streamline customer interactions, and enhance user experience. These technology-driven initiatives serve as strategic investments to attract, retain, and build lasting relationships with consumers.

Expanding Market Reach

The Company is focusing on deepening its presence in rural markets by increasing both mind share and market share. A re ined rural distribution strategy, supported by new offerings and a premiumization approach, is being implemented. By leveraging data and a cluster-based market approach, Alankit has successfully penetrated newer markets, uncovered growth opportunities, and introduced transparent planning processes for expansion.

Threats

Alankit recognizes the following challenges that could potentially impact its operations:

Entry of new competitors into the market, leading to increased competition Economic _luctuations that may affect consumer spending and overall demand

Despite these challenges, the Company remains con ident in the long-term growth prospects of the business and the broader industry landscape. Our strategic initiatives and resilience position us well to adapt and thrive in a dynamic environment.

Discussion On Financial Performance with Respect to Operational Performance

During the year under review, your Company recorded a total revenue of 30,105.64 lakhs, as compared to 23,570.45 lakhs in the previous _inancial year (as per consolidated _inancials). The Pro it After Tax stood at 2,167.02 lakhs, as compared to the previous years pro it of 2,198.04 lakhs (as per consolidated _inancials).

Furthermore, the Net Sales/Income from Operations increased by 16.09 percent. The Directors remain committed to enhancing the Companys pro itability and are making continuous efforts towards achieving sustainable _inancial growth.

Material Developments in Human Resources and Industrial Relations

Alankit continues to adopt industry-leading practices in human resource management, ensuring transparent processes across all levels of the organization. The Company recognizes that its employees are its most valuable asset and provides comprehensive bene its aligned with industry standards.

Through ongoing employee engagement, training, and capability-building initiatives, Alankit empowers its workforce with the latest technical skills and domain expertise. These programs are designed to support continuous professional development and align employees with evolving technological and business trends.

Operating across 15 group companies and spanning _ive business divisions, Financial Services, RegTech, Channel Business, Managed Services, and Tech Solutions, Alankit fosters a dynamic and inclusive work environment. The company maintains a strong physical presence with 25 regional of ices across India and three overseas o ices located in the UAE, Germany, and Singapore.

Significant Changes in Key Financial Ratios

The key financial ratios for the _inancial year 2024 25 and their comparison with the previous year are as follows:

A. Trade Receivables Turnover ratio: Net credit sales / Average Account Receivable. The ratio for the year was 4.59 times compared to 3.36 times in the previous _inancial year. This increase re lects better and faster collection of receivables. B. Debt Service Coverage ratio (DSCR): EBIT / Interest Expense. The ratio for the year was 1.00 times as against 0.98 times in the previous year. This substantial increase is due to rising revenue which improved the companys ability to cover interest expenses. Note that DSCR usually measures EBIT divided by total debt service (interest + principal), but a ratio this high indicates strong coverage by EBIT over interest costs. C. Current Ratio: Current Assets / Current Liabilities. The ratio for the current _inancial year was 2.16 times compared to 1.16 times in the previous year. The decline, not increase, is likely due to an increase in short-term debts, reducing liquidity.

D. Debt-Equity Ratio: Total Debt / Shareholders Equity. This ratio was 0.04 times against 0.15 times in the previous year, indicating slightly increased borrowing relative to equity. E. Net Pro_it Margin: Net Pro it / Total Revenue from operations. The margin for the current _inancial year was 7.20% as compared to 9.33% in the previous year. This positive turnaround is attributable to higher revenue and effective cost reduction measures.

Outlook

Despite challenges in the broader macroeconomic environment, Alankit Limited remains con ident about its future prospects. With a strong strategic foundation and continued focus on operational excellence, the Company is well-positioned to capture emerging opportunities in the e-Governance services industry.

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements that are subject to inherent risks and uncertainties. Actual outcomes may differ materially due to factors such as changing market dynamics, economic conditions, regulatory developments, and unforeseen events. Readers are advised not to place undue reliance on these statements, which are based on current expectations and assumptions. For a complete understanding of the risk factors, please refer to our of icial ilings and disclosures.