Alankit Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION & ANALYSIS REPORT</dhhead-

The global economy continues on a path of steady, if uneven, recovery. Major Western central banks have moved through several rounds of rate cuts since late 2024, easing financing conditions even as geopolitical and trade-policy uncertainties persist. Against this backdrop, India has retained its position as the fastest-growing major economy in the world and remains on course to become one of the top three global economic powers within the decade, underpinned by a stable democracy, deepening trade partnerships, and sustained domestic demand. As India moves closer to the worlds third-largest economy by nominal GDP, its consumer market is also on track to become the third-largest globally by 2027.

For the fiscal year 2025-26, Indias real GDP grew by an estimated 7.7%, accelerating from 7.1% growth in 2024-25, per provisional estimates released by the Ministry of Statistics and Programme Implementation in June 2026. Nominal GDP expanded by 8.9% during the year. Real GDP for 2025-26 is estimated at approximately ^323.12 lakh crore, up from ^299.89 lakh crore in 2024-25, while Real Gross Value Added (GVA) grew by 7.9% to reach approximately ^294.91 lakh crore.

India continues to stand out as a distinctive emerging market, driven by knowledge-based services and a broad base of competitive strengths. Government programmes such as Smart Cities, Clean India, and Digital India continue to strengthen the services sector and sustain a supportive environment for growth.

Industry Structure and Developments E-Governance Industry Overview

India has continued to strengthen its e-governance capabilities, with state governments, universities, service providers, app developers, and researchers working together to widen access and improve adoption across the country.

The United Nations E-Government Survey remains the principal global benchmark for assessing digital government development. Indias E-Government Development Index (EGDI) score stood at 0.5964 in 2020, when the country ranked 100th among 193 UN Member States. In the latest United Nations E-Government Survey 2024, India improved its ranking to 97th, reflecting continued progress in digital infrastructure, online public services, and human capital development. The 2024 Survey also provides updated E-Participation Index rankings, highlighting Indias continued efforts to strengthen citizen engagement through digital governance.

Numerous initiatives by State Governments and Central Ministries continue to advance the era of e-Government in India, with sustained efforts across levels aimed at enhancing public service delivery and simplifying citizen access.

Indias e-Governance journey has evolved from the basic computerisation of government departments to advanced, citizen-centric, service-oriented, and transparent digital initiatives. Lessons from earlier e-Governance projects continue to shape the countrys evolving digital governance strategy. A programmatic approach guided by a unified vision now drives faster, more integrated implementation across national, state, and local levels, enabling cost savings

through shared infrastructure, promoting interoperability through standardised frameworks, and giving citizens a seamless, cohesive view of government services.

Company Overview

Alankit Limited is a leading provider of e-Governance services, committed to delivering innovative, citizen-focused solutions to millions across India. A strong emphasis on customer satisfaction guides the Companys strategy, shapes its organisational structure, and informs its investment decisions. Alankit continues to explore new opportunities to enhance its offerings by building capabilities, reskilling its workforce, and introducing modern products and platforms that meet the evolving needs of the market.

By upholding high standards of quality and service delivery, Alankit offers an integrated platform that streamlines access to a diverse range of services, ensuring ease and convenience for customers. The Companys growth strategy remains focused both on deepening its domestic presence across Indian cities and on building global partnerships to expand its international footprint.

Alankits core objective is to build a sustainable organisation that stays relevant to clients, creates meaningful growth opportunities for employees, generates long-term value for investors, and contributes positively to the communities it serves. As a trusted market leader, the Company closely tracks industry developments and applies its deep experience to drive innovation and capture emerging opportunities across its businesses.

Alankit continues to lead the digital transformation of service delivery by adopting advanced technologies, integrating artificial intelligence, and automating operational workflows, helping clients succeed in todays digital environment. The Companys performance continues to be recognised by reputed institutions for excellence in service and customer satisfaction, and it works closely with government departments across India to ensure services are delivered with transparency, efficiency, and accountability.

Headquartered in Delhi, Alankit operates through a nationwide network supported by a skilled and dedicated workforce. Serving a customer base of over 100 million, the Company offers a comprehensive range of services, including Manpower Services, PAN Centre Services, Digital Signature Certificates, Business Correspondent Services, ID Card Printing, GST Suvidha Provider Services, Income Tax Return Services, Aadhaar Services, and other citizen-centric solutions. Acting as a vital link between citizens and government, Alankit remains committed to delivering seamless, technology-driven services guided by its vision and mission to serve the nation with excellence.

Vision Statement

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

Mission Statement

To be a customer-centric organisation built on trust, delivering unmatched standards of service excellence across every offering. Alankit Limited remains confident in its growth outlook, even amid broader macroeconomic challenges. Its strategic focus and dedication to operational

excellence position the Company well to unlock significant opportunities in the expanding e- Governance services sector.

Alankit continues to lead the digital transformation of citizen services by adopting modern core technologies, applying artificial intelligence, and automating key business operations, empowering clients to adapt and succeed in the digital era. These efforts continue to be acknowledged by respected institutions for consistently delivering superior customer service.

With over two decades of industry experience, Alankit works closely with various government departments in India to deliver transparent, efficient, and accessible services to the public. Its expertise spans Manpower Services, PAN Centres, Digital Signature Certificates, Business Correspondent services, ID card printing, GST Suvidha Provider, Income Tax Return services, Aadhaar services, and the Ayushman Bharat Yojana, among others, keeping the Company committed to bridging the gap between citizens and governance with integrity and excellence.

Identity and Access Management (IAM) - Smart ID

The adoption of Smart ID cards as a primary method of authentication continues to grow steadily across the country. Responding to sustained demand for plastic identity cards, Alankit, as national distributor and recognised Original Equipment Manufacturer for IDP, offers instant and reliable printing solutions. The Company facilitates the distribution of cards including voter ID cards, Aadhaar cards, and health cards, and continues to grow its sales of ID card printers in support of this expanding segment of identity and access management.

Attestation Services (MEA)

The Ministry of External Affairs, Government of India, continues to entrust 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, delivered in a streamlined and efficient manner that offers clients transparency, speed, and convenience.

Business Correspondent Services (Kiosk Banking)

The continued shift toward digital payments has unlocked greater opportunities for financial inclusion, particularly among underserved communities. Alankit has established a strong presence in this space through partnerships with 11 leading banks across India. As a Business Correspondent, the Company extends banking services to remote and underserved communities through its network of Customer Service Points (CSPs), promoting secure, accessible, and inclusive financial services.

As a Business Correspondent, Alankit helps extend banking access to remote and rural populations. The Company operates Customer Service Points using remote biometric-enabled technology, allowing customers to enrol and transact securely and efficiently. This model continues to strengthen the delivery of financial services and promote inclusive banking across the nation.

GST Compliance Solutions

Alankit is a leading integrated service provider offering a comprehensive range of GST compliance solutions. With a strong nationwide network and a focus on innovation, the Company supports Application Service Providers (ASPs) through high-performance services, including robust API gateway management, failure handling mechanisms, enriched APIs, and responsive callbacks via the Platinum Gateway.

In addition to its technology-driven offerings, Alankit provides end-to-end GST registration and consultancy services designed to simplify compliance, enhance transparency, and create a more business-friendly environment.

To support the seamless implementation of the Goods and Services Tax (GST) across India, Alankit offers the following GST solutions through web- and mobile-based platforms:

1) API Solutions (Pass Through)

2) GST Smart Muneemji Software, e-Raahi, and e-Invoicing

3) Cloud-based ERP for Billing and e-Invoicing

These solutions integrate seamlessly with leading ERP platforms, including SAP, Oracle, and Microsoft Dynamics, enabling efficient GST compliance and e-Invoicing processes. Through its technology-driven solutions and customer-centric approach, Alankit continues to help businesses simplify GST management while ensuring compliance with evolving regulatory requirements.

PAN Services

With more than a decade of experience, Alankit provides convenient, cost-effective PAN card services across India through digital channels, including acceptance of new PAN applications, correction and update requests, and instant PAN issuance — simplifying administrative tasks for the government while offering ease and efficiency to individuals and businesses.

Manpower and Staffing Management

Alankit delivers customised manpower and staffing solutions tailored to the needs of various organisations, with a strong focus on government departments, enhancing workforce agility and operational efficiency. Alankit also offers professional training and development programmes designed by experts to align organisational learning with business objectives and to enhance talent capabilities across functions.

Digital Signature Certificates

Through its subsidiary Verasys Technologies, Alankit provides innovative and secure electronic signature solutions, delivering technology-driven solutions that simplify client operations and improve efficiency in a digitally evolving environment.

Payment Solutions

With deep expertise in the payment domain, Alankit offers modern card payment solutions to businesses of all sizes, combining advanced technology with a customer-first approach to ensure secure and seamless gateway processing for efficient transactions.

MOSIP Credential Partner

Alankit is an enlisted credential partner with the Modular Open Source Identity Platform, placing it within an ecosystem focused on developing digital identity systems that are secure, scalable, and tailored to the needs of different regions and populations.

National Insurance Repository (NIR)

As a pioneer in insurance services, Alankit provides comprehensive support for both life and non-life insurance products, assisting clients in identifying suitable policies, managing risks, and settling claims efficiently. Its single-window insurance repository simplifies access to multiple policies through a secure digital platform and payment gateway, with the goal of reducing financial risks for individuals and corporations through reliable insurance coverage.

Ayushman Bharat

Under the Pradhan Mantri Jan Arogya Yojana, Alankit offers cost-effective and secure e-card printing solutions for Ayushman Bharat beneficiaries. As an authorised PMJAY Service Agent, Alankit provides advanced desktop ID card printing technologies that are both economical and user-friendly. The scheme continues to support vulnerable populations by offering:

• Cashless coverage for all hospitalisation expenses

• Inclusion of pre and post-hospitalisation costs

• Coverage for all family members without restrictions on size, age, or gender

• Immediate inclusion of pre-existing conditions

Paper-To-Follow (P2F) Process

Alankit supports the Paper to Follow process for the Cheque Truncation System, a key initiative of the National Payments Corporation of India. With its extensive nationwide network, Alankit ensures smooth implementation and management of the process at Grid CTS locations, accelerating cheque clearance cycles and improving access to banking for citizens.

Aadhaar Services

With extensive reach and years of operational experience, Alankit delivers Aadhaar-related services through a wide network of centres across India, with millions of citizens successfully enrolled under the Aadhaar scheme through its efficient and transparent processes.

Atal Pension Yojana

Alankit supports the Government of Indias mission to build a pensioned society through the Atal Pension Yojana, which encourages individuals to save modest amounts during their working years in exchange for a guaranteed monthly pension of up to five thousand rupees during old age — a key social security initiative for financially vulnerable populations.

Scanning and Digitization

Recordxpert.com, Alankits web-based health and wellness portal, enables users to securely store and manage their medical records online. This digital platform allows easy access to health data at any time, improving the accuracy of treatments and reducing medical errors, and helps Alankit support a more responsive and informed healthcare experience.

Our Strengths

a) A highly experienced execution team and a reliable network of associates

b) A strong brand image and solid industry reputation

c) Extensive experience across diverse service domains

Internal Control Systems and Their Adequacy

The Company maintains a robust internal control framework tailored to the scale and complexity of its operations, designed to safeguard assets, ensure operational efficiency, and maintain compliance with all applicable policies and regulations.

Periodic reviews and audits continue to evaluate the effectiveness of internal control systems across all business functions, ensuring adherence to internal protocols and legal standards while identifying opportunities for continuous improvement in systems and procedures.

Opportunities

The evolving policy landscape, ongoing digital transformation, and untapped rural markets continue to present significant opportunities for Alankits growth and innovation.

Government Initiatives

Continued policy measures and reforms introduced by Central and State Governments have opened further avenues for growth in the e-Governance sector. Alankit remains well-positioned to benefit from these initiatives through its service offerings and domain expertise.

Digital Transformation

As consumer behaviour continues shifting toward digital platforms for accessing services and engaging with brands, maintaining a strong and meaningful online presence remains essential. Alankit continues to invest in digital content, social media engagement, and mobile and web applications as strategic investments to attract, retain, and build lasting relationships with consumers.

Expanding Market Reach

The Company continues to deepen its presence in rural markets by increasing both mind share and market share. A refined rural distribution strategy, supported by new offerings and a premiumisation approach, is being implemented. By leveraging data and a cluster-based market approach, Alankit continues to penetrate newer markets, uncover growth opportunities, and introduce transparent planning processes for expansion.

Threats

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

- Entry of new competitors into the market, leading to increased competition

- Economic fluctuations that may affect consumer spending and overall demand

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

Discussion on Financial Performance with Respect to Operational Performance

During the year under review, the Company recorded total revenue of ^ 12,554.89, compared to ^11,262.12 lakhs in FY 2024-25. Profit after Tax stood at ^1,228.24 compared to ^1,163.76 lakhs in FY 2024-25. The Company maintained profitability through focused operational efficiency and cost management.

Furthermore, Net Sales/Income from Operations registered an increased marginally by 0.35% during the year under review. The Directors remain committed to improving the Companys profitability and are actively pursuing strategies aimed at achieving long-term, sustainable financial 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 organisation. The Company recognises that its employees are its most valuable asset and provides comprehensive benefits aligned with industry standards.

Through ongoing employee engagement, training, and capability-building initiatives, Alankit equips its workforce with the latest technical skills and domain expertise, supporting continuous professional development and aligning employees with evolving technological and business trends.

Operating across 15 Group Companies and four primary business verticals—e-Governance, Financial Services, Insurance, and Healthcare—Alankit fosters a dynamic and inclusive work environment. The Company maintains a strong nationwide presence through 25 Regional Offices, serving customers across more than 10,000 business locations in 673+ cities.

Significant Changes in Key Financial Ratios

The key financial ratios for the financial year 2025-26 and their comparison with the previous year are as follows:

• Trade Receivables Turnover ratio: Net Credit Sales divided by Average Accounts Receivable. The ratio for the year improved to 2.35 times, up from 1.97 times in the previous financial year. This increase indicates enhanced efficiency in receivables management and faster collection cycles.

• Debt Service Coverage ratio (DSCR): EBIT divided by Interest Expense. The ratio for the year improved to 24.02 times, compared to 6.84 times in the previous year. The ratio remains strong and reflects the companys solid ability to meet its interest obligations.

• Current Ratio: Current Assets divided by Current Liabilities. The ratio for the year stood at 2.81times, compared to 2.39 times in FY 2024-25, indicating improved short-term liquidity. This increase suggests a stronger ability to meet short-term obligations, despite a rise in short-term debts.

• Debt-Equity Ratio: This ratio stood at 0.04 times in line with FY 2024-25.

• Net Profit Ratio: Net Profit divided by Total Revenue from Operations. For the current financial year, the ratio stood at 11.56%, compared to 10.99% in FY 2024-25.

Outlook

Despite challenges in the broader macroeconomic environment, Alankit Limited remains confident 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 the Companys official filings and disclosures.