Aptech Ltd Management Discussions

Global Economy Overview

The global economy witnessed steady growth in 2024, accompanied by moderating inflation and improved financial conditions. In 2024, the global economy recorded a year-over-year growth of 3.3%, driven primarily by the strong performance of Emerging Market and Developing Economies (EMDEs), which grew by 4.3%. In contrast, advanced economies registered a more modest growth rate of 1.8% during the same period. The United States economy demonstrated resilience in 2024, supported by robust labour markets and strong domestic demand. Meanwhile, the Eurozone continued to struggle with structural challenges, particularly in energy-intensive sectors. Among regional leaders, India and Southeast Asia stood out due to strong domestic consumption, rapid digital transformation and significant investments in infrastructure. Although China?s economy showed signs of recovery, its momentum was constrained by ongoing weaknesses in the property sector and subdued external demand.

Global Economic growth (%) domestic demand, a favourable demographic profile, ongoing economic reforms and increased investments in infrastructure and digital initiatives. India?s Gross National Income (GNI) grew by 5.4% in FY 2024–25, increasing to 1,31,556 from 1,24,764 in the previous fiscal year. This rise reflects the country?s continued economic momentum despite global uncertainties and domestic challenges. India recorded a strong GDP growth of 9.2% in FY 2023-24, supported by a favourable base effect and resilient domestic fundamentals. Although growth is expected to moderate to 6.5% in FY 2024-25 due to the high base, it continues to reflect solid economic momentum, driven by ongoing structural reforms, rising infrastructure investments and the sustained performance of the services sector.

Source: International Monetary Fund April 2025 report, P= Projected Looking ahead, the global economic growth rate is projected to moderate, with forecasts of 2.8% in 2025 and 3.0% in 2026. EMDEs are expected to remain the primary engines of global growth, with projected growth rates of 3.7% in 2025 and 3.9% in 2026. In comparison, advanced economies are likely to experience continued subdued growth, with estimates of 1.4% in 2025 and 1.5% in 2026. Despite persistent risks such as geopolitical tensions, climate-related disruptions and trade fragmentation, long-term economic resilience is expected to be supported by accelerated investments in clean energy and ongoing digital transformation. However, renewed discussions around the reintroduction or escalation of US tariffs have added to trade policy uncertainty, potentially impacting global supply chains and investment sentiment. Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025

Indian Economy Overview

India continued to be one of the fastest-growing major economies in FY 2024-25, registering a GDP growth rate of 6.5% year-over-year. This performance was supported by strong

Source: *MOSPI Report dated 30th May2025, E=Estimate, P= Projected #Reserve Bank of India (RBI) Monetary Policy Committee (MPC) report dated 6th June 2025 The Indian economy remained on a stable path during the year under review, sustained by robust government initiatives aimed at promoting financial inclusion, advancing digital transformation, facilitating trade through new free trade agreements and encouraging the adoption of clean energy. Rising urbanisation and an expanding middle class further contributed to sustained consumer demand. Looking ahead, India?s economic outlook remains positive, with GDP growth projected to remain steady at 6.5% in FY 2025-26. Programs like Samagra Shiksha Abhiyan, PM SHRI (Pradhan Mantri Schools for Rising India) and PM POSHAN (Pradhan Mantri Poshan Shakti Nirman) are playing a vital role in strengthening the foundations of India?s human capital. By enhancing school infrastructure, improving teacher training and driving better learning outcomes, these initiatives are contributing to a more skilled, productive and inclusive workforce—supporting India?s long-term economic growth and development goals.

Source: https://mospi.gov.in/sites/default/files/press_release/ NAD_PR_30may2025.pdf?utm_source=chatgpt.com https://www.pib.gov.in/PressNoteDetails.aspx?NoteId= 154573&ModuleId=3#:~:text=Policy%20repo%20rate%20is% 20being,per%20cent%20with%20immediate%20effect

Industry Overview

Indian Education industry

India is home to one of the largest and most diverse education ecosystems globally, including all levels of learning and catering to a vast student population. With over 250 million school-going students and approximately 265 million learners overall, the country has built the world?s largest higher education network.

Under the FY 2025–26 Budget, the Government of India has announced a range of strategic initiatives to enhance skilling and education. Five National Centres of Excellence will be set up with international collaborations to prepare youth for "Make for India, Make for the World" manufacturing opportunities. A Centre of Excellence in Artificial Intelligence for education will be established with an outlay of 500 crore to encourage technology-led learning. For gig and platform workers, the government will issue identity cards, facilitate registration on the e-Shram portal and provide healthcare under the PM Jan Arogya Yojana. To promote innovation in schools 50,000 Atal Tinkering Labs will be established over the next five years. The Bharatiya Bhasha Pustak Scheme will ensure Indian language books are made digitally accessible for school and higher education. Furthermore, the Union Cabinet approved the continuation and restructuring of the Skill India Programme (SIP) till 2026 with a total outlay of 8,800 crore. This consolidated scheme integrates three flagship initiatives—Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0, Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS) and Jan Shikshan Sansthan (JSS)—which have together benefitted over 2.27 crore individuals as of February 7, 2025. These measures reflect the government?s continued commitment to building an inclusive, future-ready and skilled workforce.

Source: https://www.wrightresearch.in/encyclopedia/chapter-report/chapter-1-introduction-to-indian-education-sector-2024/ https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID= 2100845#:~:text=Programme%20to%20Strengthen%20 Workforce%20Development,aligned%20training%20across% 20the%20country https://www.pib.gov.in/PressReleasePage.aspx?PRID= 2098352

Indian Media & Entertainment Sector

The Indian Media and Entertainment (M&E) sector demonstrated resilience in 2024 amid ongoing digital disruption and shifting consumer behaviours. The sector grew by 3.3%, adding 81 billion to reach a size of 2.5 trillion, contributing 0.73% to India?s GDP. Growth was primarily driven by digital media, live events and out-of-home (OOH) advertising. Notably, new media—which includes digital media and online gaming—expanded by 12% to 113 billion and accounted for 41% of total M&E revenues. For the first time, digital media surpassed television to become the largest segment, contributing 32% of the industry?s revenue. Although the overall M&E sector in India was 30% above its pre-pandemic 2019 levels by 2024, traditional segments such as television, print and radio continued to lag in their recovery, reflecting a shift in consumer preferences toward digital platforms.

The animation, Visual Effects (VFX) and post-production segment faced challenges in 2024, recording a 9% decline in overall revenues to 103 billion. The animation industry saw the steepest decline at 19%, falling to 29 billion in

2024. This was largely attributed to a global reduction in the commissioning of animated TV and OTT content, cost optimisation efforts and shifting content strategies among major platforms and networks. The Hollywood writers? strike disrupted global supply chains, prompting international studios—already grappling with profitability challenges in 2024—to scale back on the production of films and series. Domestic production also suffered due to reduced Pay TV ad revenues, mergers among large buyers and internal restructuring, which delayed commissioning of new content. While Indian studios increased participation in global forums, limited access to project financing hindered content scale-up and co-productions. However, India?s adult animation segment showed modest growth, with studios exploring new monetisation models. Adoption of Artificial Intelligence (AI) technologies helped improve operational efficiency in content production during 2024.

In 2024, the global VFX segment saw a 10% decline in production, reducing outsourcing opportunities for Indian providers as OTT platforms cut back on new content and prioritised franchise renewals to manage costs and maximise returns. Amid these challenges, the post-production segment recorded strong growth of 16% in 2024, reaching 27 billion in revenue. Increased demand for content localisation—driven by the rising consumption of international OTT content dubbed in multiple Indian languages—was a key growth factor. Additionally, domestic tentpole content and nationally-themed films had been launched in several languages, further fuelling localisation demand. Growth in ad films, social media content and short-form videos also boosted demand for high-quality post-production services.

Indian Media & Entertainment Sector Trends

	2019	2022	2023	2024	2025E	2027E	CAGR 2023-2027
Digital media	308	571	686	802	903	1,104	11.2%
Television	788	726	711	679	676	667	(0.6)%
Print	296	250	259	260	262	267	0.9%
Online gaming	64	222	236	232	260	316	10.8%
Filmed entertainment	191	172	197	187	196	213	4.3%
Animation and VFX	95	107	114	103	113	147	12.5%
Live events	83	73	88	101	119	167	18.2%
Out of Home media	51	48	54	59	66	79	10.2%
Music	15	46	54	53	60	78	13.4%
Radio	31	21	23	25	27	30	6.6%
Total	1,922	2,237	2,422	2,502	2,682	3,067	7.0%
Growth		23.3%	8.3%	3.3%	7.2%

All figures are gross of taxes (INR in billion) for calendar years EY estimates

Source: FICCI EY

Looking ahead, the M&E sector is projected to grow by 7.2% in 2025, reaching 2.68 trillion and is expected to expand further at a CAGR of 7% to 3.07 trillion by 2027. The animation, VFX and post-production segment is expected to recover with a projected CAGR of 12.5% through 2027, potentially reaching 147 billion. The global content market is set to rebound, with programming spend expected to grow by

5.3% in 2025 to USD 206 billion. Additionally, the VFX domain is expanding into experiential content such as virtual events, stage-craft, theme parks and holographic concerts—areas that require advanced skillsets and represent a long-term opportunity for Indian players. India is also emerging as a major force in the global animation market. India is expected to contribute 60% of global animation growth in next few years. Indian studios are increasingly exploring partnerships with Japanese studios, developing local animation IPs and tapping into ancillary revenue streams like merchandise and gaming.

Government policies such as the establishment of the National Centre of Excellence (NCoE), state-level Animation, Visual Effects, Gaming and Comics (AVGC)-Extended Reality (XR) policies, innovation funds and skilling initiatives are building a strong foundation for talent and entrepreneurial growth. States like Karnataka, Kerala and Telangana have introduced targeted AVGC policies and funding mechanisms to support the employment ecosystem. AI adoption is transforming the content creation landscape by automating tasks such as rotoscopy, compositing and localisation. In the next few years, AI is expected to generate substantial parts of films, including animation and effects, creating new job roles like prompt engineers and AI tool specialists. While this may impact traditional outsourcing jobs, it presents an opportunity for India to lead in content-tech innovation and IP creation.

Source: https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/media-entertainment/ey-shape-the-future-indian-media-and-entertainment-is-scripting-a-new-story.pdf

Beauty & Wellness

India?s beauty and personal care industry is undergoing a significant transformation, driven by rising disposable incomes, increasing digital penetration and changing consumer aspirations—particularly among Gen Z and Millennials. The Indian beauty and personal care market was valued at USD 28 billion in 2024 and according to IMARC Group, the industry is projected to reach USD 48.3 billion by 2033, growing at a CAGR of 5.6% during the forecast period. West and Central India held a dominant share in 2024, reflecting strong regional demand.

The evolving landscape of India?s beauty and personal care industry is significantly boosting job prospects across various domains. As the shift towards premiumisation becomes more pronounced, there is rising demand for skilled professionals who can formulate and market high-quality products that deliver superior results and emotional value. The rapid expansion of e-commerce, particularly in Tier 2 and Tier 3 cities, is not only increasing product accessibility but also creating employment opportunities in logistics, supply chain management, digital marketing and customer service.

With daily beauty routines becoming more elaborate and multi-step regimens gaining popularity, the need for trained beauty advisors, cosmetologists and product specialists is growing. At the same time, the growing importance of influencer marketing has opened new career paths in content creation, social media strategy and brand collaboration management. Micro-influencers, with their strong community connect, are carving out niche roles in the marketing.

The rapid rise of microtrends driven by social media is generating demand for skilled professionals in marketing and trend analysis who can respond swiftly to evolving consumer preferences. At the same time, the growing adoption of technologies such as artificial intelligence (AI) and augmented reality (AR) is creating new job roles in virtual try-on development, data interpretation and personalised product recommendation systems. These advancements are reshaping the beauty and styling industry, expanding employment opportunities across technology, retail, marketing, research and beauty services. As digital tools continue to redefine how consumers engage with beauty products, the industry is witnessing a surge in tech-enabled roles aimed at enhancing customer experience and personalisation.

Source: https://www.imarcgroup.com/india-beauty-personal-care-market https://redseer.com/reports/indias-beauty-industry-expanding-across-audiences-and-categories/

Information Technology (IT)

India?s IT industry is undergoing a transformative shift, emerging as a global innovation hub fuelled by cutting-edge technologies, digital talent and rising global demand. India is home to approximately 5.8 million skilled professionals and over 40,000 IT firms, with women comprising around 36% of the tech workforce in FY 2024-25. This robust talent base, combined with a thriving entrepreneurial ecosystem, positions India as one of the largest and fastest-growing IT and startup hubs in the world.

The Indian IT industry maintained its growth momentum, with total IT revenues estimated to have reached USD 283 billion in FY 2024-25, reflecting a growth rate of 5.1% year-on-year (YoY). Indian IT exports stood at USD 224 billion and were estimated to have grown by 4.6% YoY, while the domestic IT industry has been projected to have surpassed USD 58.2 billion, recording a 7.0% YoY growth in FY 2024-25. India?s IT industry experienced strong growth driven by innovation, emerging technologies and rising global demand.

India is positioning itself as a global IT leader—offering innovation, cost-efficiency and world-class capabilities with increasing focus on data engineering, digital product development and regional manufacturing. The number of Global Capability Centres (GCCs) grew from around 1,285 in FY 2018–19 to over 1,750 in FY 2024-25. Key drivers included the adoption of generative AI (GenAI), cloud-native solutions and advanced cybersecurity. In FY 2024-25, all IT segments saw steady growth, with Engineering Research and Development (ER&D) leading at 7% YoY, followed by Business Process Management (BPM) at 4.4%, Software Products at 3.9% and IT Services at 3.7%, driven by digital innovation, AI adoption and industry-specific solutions.

India strengthened its position as a global cybersecurity leader, driven by skilled talent and a robust startup ecosystem, amid rising demand in Banking, Financial Services and Insurance (BFSI) and healthcare for real-time data. India?s IT industry, backed by rising digital maturity and advancing deep tech capabilities, is poised to lead the next phase of global technology transformation—seamlessly combining scale with innovation to drive long-term impact.

India?s IT Revenue (in USD billion)

Source: Nasscom

Source: https://nasscom.in//modules/custom/nasscom_ general/docs/Nasscom-Strategic%20Review-2025-Executive%20Summary.pdf

Company Overview

Aptech Limited (hereafter referred to as ‘Aptech? or ‘the Company?) is a pioneer in vocational and non-formal academic training, with nearly four decades of experience in skill-based training & education. The Company has built a strong global footprint since its inception in 1986, operating in more than 250+ cities globally and has over 1000 learning centres and having trained millions of students and professionals worldwide. Aptech offers a broad spectrum of industry-relevant programs across M&E, beauty and wellness, aviation, hospitality, retail, IT, banking and finance and preschool education. The Company plays a pivotal role in narrowing the skill gap by equipping learners with practical competencies that enhance employability in high-growth sectors. Aptech focuses on hands-on training over formal qualifications and aligns its mission with the Government?s "Skill India" initiative, particularly in fast-expanding domains such as Media & Entertainment and Beauty & Wellness.

The Company caters to the growing demand in animation, VFX, gaming and graphic design through its training brands - Arena Animation and MAAC (Maya Academy of Advanced Creativity). Students are provided access to live job opportunities through the Industry Connect and Alliances team. Aptech delivers training in the Beauty & Wellness segment through Lakm? Academy Powered by Aptech, enabling students to explore career opportunities with leading salons, operate as freelance professionals, or pursue entrepreneurial ventures. The Company leverages an industry-aligned curriculum, expert faculty and cutting-edge technology to deliver impactful learning outcomes and create a skilled talent pool across sectors. Aptech has earned multiple recognitions, the Golden

Peacock National Training Award (2024). The Company remains committed to building a future-ready workforce through continuous innovation, quality delivery and a strong focus on employability.

Business Portfolio

Aptech offers holistic skill development through industry-relevant courses that balance theory with practical training and simulate real-world environments via events and competitions, ensuring strong return on investment (ROI). The Company operates through two key business segments: Retail & Institutional Business (Enterprise Business Group - EBG).

Retail

Aptech aspires to become a leading global provider of non-formal skilling and vocational training in the retail segment through its ‘Branded Omni-Channel Job-Enablement Platform,? which is structured around four core pillars.

Branded: The Company operates distinct brands, each focused on specific industry sectors.

Omni-Channel: Training is delivered through a mix of physical centres and digital platforms, combining instructor-led and technology-driven methods.

Job-Enablement: Programs are designed to improve employability by addressing current and future industry needs.

Platform: The business model is scalable and replicable, offering value to all stakeholders.

The Company enhances learning through expert-led workshops, advanced infrastructure, cutting-edge pedagogy and latest AI enabled-integrated courseware, while maintaining consistent learning outcomes across centres. Aptech delivers its training programmes globally through a network of Business Partners who operate its learning centres. These centres offer specialised, industry-oriented courses in both classroom and hybrid formats, with a strong emphasis on job readiness. The Company?s asset-light model enables efficient and scalable delivery of skill-based education.

Brands

Aptech?s individual training portfolio includes well-established brands such as Arena Animation, MAAC, Lakm? Academy powered by Aptech, Aptech Aviation Academy, Aptech Learning, Aptech International Preschool, The Virtual Production Academy and ProAlley. The Enterprise segment caters to corporate learning and large-scale assessment needs through Aptech Training Solutions and Aptech Assessment & Testing Solutions.

Brand	Skill Areas	Founded	Overseas Presence
Arena Animation	Animation, Visual Effects, Gaming, Immersive Media, Digital Content Creation & Digital Media	1996	Yes
MAAC	Animation, Visual Effects, Gaming, Immersive Media, Digital Content Creation & Digital Media	2010	Yes

Aptech Learning Software Development, Hardware & Networking, English 1986 Yes Language Learning, Financial Administration and Accounting Lakm? Academy Powered by Aptech (In Beauty & Wellness courses such as Beauty, Hair & Makeup, 2015 No Alliance with Lakm? Lever Private Limited) Skin, Nails & Cosmetology Aptech Aviation Academy CustomerService,AirportManagement,CabinCrew,Ticketing, 2006 No Hotel Management, Tourism, Retail Store Management, Merchandising, Distribution Aptech International Preschool Mother-toddler, Pre-nursery, Nursery, Kindergarten-1, 2016 No Kindergarten-2, Childcare and Activity centres The Virtual Production Academy (TheVPA) Virtual Production, Filmmaking, Hybrid Virtual Production, 2023 No Unreal Engine, LED Volume Wall

Business Strengths and Strategies

Building Future-Ready Courses for the Creator Ecosystem

Aptech has launched a new suite of cutting-edge programmes under its Media & Entertainment brands—MAAC and Arena Animation—to support the growing aspirations of today?s digital-first talent. These courses are tailored to equip emerging creators, influencers, solopreneurs and content strategists with expertise in video production, personal branding, monetisation strategies and GenAI-driven creative processes. This initiative supports the Prime Minister?s ‘Create in India, Create for the World? mission by positioning Aptech as a key contributor to India?s Orange Economy and global creative leadership.

Expanding Business Reach

Aptech is expanding its presence, globally. The Company also participated in the Vietnam-India Business Forum FY 2024-25 to support bilateral economic engagement. The Company leverages its PHYGITAL model to strengthen outreach in Tier 3 and rural areas through hybrid, cost-effective learning.

Driving Innovation

Aptech is enhancing vocational education by introducing advanced programmes in immersive media, real-time 3D and GenAI through its Virtual Production Academy.

Unlocking New Growth Avenues

Aptech is actively supporting talent development in the AVGC (Animation, Visual Effects, Gaming and Comics) and Media & Entertainment sectors through strategic initiatives and institutional partnerships. In FY 2024–25, the Company entered a 3-year collaboration with the National Film Development Corporation (NFDC), under the Ministry of Information and Broadcasting, announced at IFFI Goa 2024, to strengthen industry-ready skill development. Aptech is advancing growth through initiatives such as The Virtual Production Academy, and a dedicated AI charter to integrate generative AI into its training ecosystem. The Company continues to expand its impact across diverse skilling domains by enhancing curriculum relevance, improving placement outcomes and deepening alumni engagement via its platform.

Customer Centricity Through CSAT-Driven Engagement

Aptech has embedded customer satisfaction at the core of its operational strategy across its brand ecosystem—Arena Animation, Maya Academy of Advanced Creativity (MAAC), Lakm? Academy Powered by Aptech (LAPA), Aptech Learning and Aptech Aviation Academy. The Company institutionalised a structured Customer Satisfaction (CSAT) programme to reduce attrition, improve referral rates and strengthen course completion.

The initiative includes: o Monthly digital CSAT surveys at key learner milestones (onboarding, course journey and post-exit). o Real-time tracking through a centralised feedback dashboard. o Monthly scorecards for franchise centres with actionableinsights,NPSindicatorsandaccountability reviews. o Empowerment through CSAT improvement toolkits, quarterly webinars and recognition of high-performing centres.

This structured approach encourages continuous improvement and keeps the focus on students. Feedback is regularly used to make meaningful improvements in services across the entire network.

Operational Highlights

DOMESTIC RETAIL

Retail Network Expansion Continues Across Domestic Markets

In terms of expansion, the Company signed up 122 new retail centres during the year.

Key initiative launched to enhance student learning outcomes –

Aptech launched several key initiatives during the year to enhance its educational offerings and strengthen engagement within the Domestic Retail division, as detailed below: In FY 2024–25, Aptech rolled out a series of tech-driven initiatives aimed at enriching student experience, enhancing skill development, and improving employability outcomes across its Media & Entertainment vertical. These initiatives reflect our commitment to delivering learner-first, outcome-oriented education that is aligned with today?s digital and creative economy.

CreVal: An AI-powered creative evaluation tool that offers real-time, structured feedback on visual artworks, enabling creative learners to improve skills at scale with precision. It is the first of its kind in the AVGC-XR education space.

i-Aspire: A centralized digital placement platform that streamlines the student-to-job journey by integrating onboarding, portfolio reviews, and job applications, while ensuring quality and transparency through Aptech?s placement team.

ProConnect: A unified student engagement and learning platform, offering a seamless digital experience across academics, collaboration, events, and support. With a mobile-first design and gamified modules, it enhances learner engagement and lifecycle management.

Together, these strategic platforms position Aptech as an innovation-led education leader, driving measurable outcomes and reinforcing our mission to empower every learner with skills, confidence, and career readiness.

Enhanced Digital Experience Through Website Revamp

Aptech has undertaken a comprehensive revamp of its brand and corporate websites to ensure a seamless, intuitive and modern user interface. This redesign enhances the digital experience for prospective students, partners and other stakeholders, reinforcing Aptech?s positioning as a tech-forward skilling enterprise. The updated look and feel support better engagement, easier navigation and improved lead conversion across all business verticals.

Expanding Market Reach Through Pan-India College Outreach

College Connect: Building Early Awareness and Aspirations

To nurture career interest in creative fields and build early awareness among students, Aptech launched a pan-India

College Connect & Evangelisation Program. This large-scale outreach initiative aimed to engage with undergraduate students across the country through structured seminars and hands-on workshops, introducing them to the exciting possibilities within the creative and beauty industries. Each workshop was designed as a three-day immersive learning experience, focusing on foundational skills in areas like graphic design, motion graphics, 3D design, and beauty & wellness. With a blend of theoretical learning, practical exercises, and career counselling, the sessions offered students first-hand exposure to industry-standard tools, emerging career paths, and real-world applications of their creative potential.

The program was successfully executed across multiple Aptech brands:

Lakm? Academy Powered by Aptech conducted 266+ seminars, engaging with 14,420 students

MAAC conducted 219+ seminars, also reaching 14,420 students

Arena Animation conducted 243+ seminars, connecting with 14,492 students

By facilitating access to relevant skills and career guidance at the grassroots level, this initiative strengthens Aptech?s role as a career enabler and builds a robust pipeline of future-ready talent for the creative economy.

Recalibrated Product Portfolio Aligned with Gen Z Expectations

Aptech has revamped key programmes in its Media

& Entertainment vertical to meet the distinct expectations of Gen Z, who seek speed, flexibility and clear career pathways. The Company has replaced conventional long-term courses with compact, modular formats that provide defined skillsets at each stage, enabling faster entry into the job market. Learners can progressively build on their expertise by adding modules tailored to their specific career ambitions—whether in content creation, AI-driven digital marketing, motion graphics, 3D design, or tech-enabled storytelling. This approach not only supports quicker skill acquisition but also empowers learners with personalised, job-aligned education. It reflects Aptech?s focus on delivering relevant and future-ready training that evolves with both technological advances and learner aspirations.

Strategic Transformation of ProAlley: Live, Expert-led Skilling

Aptech has repositioned ProAlley, its digital skilling platform, by shifting from a self-paced format to an interactive, live online expert-led model. The platform now offers structured programmes across three pillars: o Job-Focused Finishing School Courses o Emerging Trends Upskilling o Career Booster Programmes

INTERNATIONAL RETAIL

Robust International Enrolment Growth and Digital Expansion

During the year under review, the Company witnessed strong enrolment growth in key international markets, with Qatar, Egypt and Nigeria collectively recording a 31% increase in student enrolments.

Retail Network Expansion Continues in International Markets

In terms of expansion, the Company signed up 33 new international retail centres in FY 2024–25.

INSTITUTIONAL BUSINESS (EBG)

The Institutional Business delivers high-quality assessment and testing services across diverse industries, with expertise in providing secure, reliable and efficient examination solutions in collaboration with government agencies, autonomous institutions and private sector organisations. Beyond testing, the segment conducts large-scale, multi-location training programmes focused on areas such as IT, soft skills and customer service, primarily targeting lower- to middle-management personnel. The Company also offers Learning Management Solutions (LMS) leveraging latest technologies like Blockchain solutions to facilitate structured and impactful learning experiences for institutional clients. The Institutional Business experienced a temporary slowdown in the first three quarters of last year due to the general elections and delayed order cycles from various State and Central Government departments. The Business saw a significant recovery in Q4 reflecting your company?s ability to unlock new opportunities and positioning your Company for further growth across training and assessment. With strong fundamentals and renewed government focus post-elections, the segment is well-positioned for strategic realignment and long-term growth. During FY 2024-25, the Company onboarded a new customer with consistent monthly billing, contributing to business de-risking and revenue stability. Additionally, several new content, training partners and government empanelment were brought on board to strengthen the Company?s training offerings. These include reputed organisations such as ActionCOACH, Brian Tracy Solutions, Sales Geek and GrevX Academy, enhancing the overall value proposition for learners.

Financial Review

The Company?s consolidated operating revenue for the year ended March 31, 2025, stood at 46,010 lakhs, compared to 43,681 lakhs in FY 2023–24, registering a 5% growth. The Retail segment remained the primary growth driver, posting revenues of 42,492 lakhs, an_ 11% year-on-year increase_ from 38,131 lakhs in the previous year. Margin moderation in this segment was primarily due to increased investments in brand-building, digital outreach, and below-the-line marketing initiatives aimed at enhancing lead generation and driving footfalls across centres.

The Institutional segment?s operating revenue declined to 3,518 lakhs in FY 2024–25 from 5,550 lakhs in FY 2023–24. In FY 2024-25, Institutional segment experienced a slow start due to external and operational challenges, including key transitions across central and state governments that delayed decision-making and project execution. With stable fundamentals and renewed government focus and policy momentum post-elections the Company witnessed a notable improvement in momentum from Q4, securing multiple large-scale contracts requiring phased implementation.

During FY 2024–25, the Company incurred a foreign currency loss of 76 lakhs compared to 710 lakhs in FY 2023–24, due to the devaluation of the Nigerian Naira, arising from the revaluation of bank balances and trade receivables. As this was an exceptional occurrence, the loss was recorded under exceptional items.

Profit Before Tax (after exceptional items) stood at 3,475 lakhs in FY 2024–25, compared to 4,036 lakhs in FY 2023–24. The_ effective tax rate rose to 45.09%_ (vs. 28.05% last year) due to_Minimum Alternate Tax (MAT) credit reversal, resulting in a_Profit After Tax (PAT) of 1,908 lakhs, down from 2,904 lakhs in the previous year. Basic EPS for the year stood at 3.29, as against 5.01 in the previous year. The Company continued to maintain a zero-debt position, with Cash and Cash Equivalents of 19,537 lakhs, reflecting a robust liquidity position.

Segment – wise Financial Performance (In Lakhs)
Segment	FY 2024-25	FY 2023-24	YoY (%)
Revenues
Retail	42,492	38,131	11
Institutional	3,518	5,550	(37)
Total Revenues	46,010	43,681	5
PBT
Retail	7,096	7,706	(8)
Institutional	(1,457)	(1,028)	42
Exceptional Items	(76)	(710)	(89)
Unallocable Expense	(3,402)	(3,118)	9
Unallocable Income (Interest & Other Income)	1,312	1,187	11
Total PBT	3,475	4,036	(14)
Income Tax Expenses (including MAT Expenses)	1,567	1,132	38
PAT	1,908	2,904	(34)
Basic EPS	3.29	5.01	(34)
Cash and Cash Equivalents including short term investments	19,537	19,893	(2)

Significant Change in Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediate previous financial year) in key sector-specific financial ratios.

The Company has identified the following ratios as key financial ratios:

Key Financials Ratios	FY 2024-25	FY 2023-24	Differences (%)	Explanation (for > 25% variance)
Interest Service	46.42	41.23	13
coverage Ratio (in times)
Current Ratio (in times)	2.39	2.21	8
Trade Receivables turnover (in times)	11.04	8.47	30	The improvement in the trade receivables turnover ratio is attributed to the implementation of robust collection processes, which has led to a reduction in outstanding debtors. Management has actively monitored the ageing of receivables and reinforced collection efforts, thereby enhancing the overall cash conversion cycle. Additionally, necessary provisions for doubtful debts have been made wherever required and existing credit policies are being revisited to ensure receivables are maintained at an optimal level.
Inventory turnover (in times)	1.34	1.42	(5)
Trade Payable turnover ratio (in times)_	15.32	5.20	194	The increase in the Trade Payables Turnover Ratio is primarily driven by faster settlement of supplier dues and a reduction in the credit period availed from vendors, supported by the improved liquidity position of the Company. The Company continues to maintain close monitoring of its working capital to ensure a balanced and efficient cash flow position.
Net Capital turnover ratio (in times)	1.83	1.68	9
Net profit margin (%)	4.15%	6.65%	(38)	The decline in the net profit margin is primarily due to lower profit realisation during the period, along with the impact of Minimum Alternate Tax (MAT) expenses, which collectively led to a reduction in overall net profitability.
Return on Equity ratio (%)	7.46%	11.25%	(34)	The decline in return on Equity is attributable to reduced profit realisation and the incidence of Minimum Alternate Tax (MAT) expenses, which adversely impacted overall profitability.
Return on Capital Employed (%)	14.51%	18.79%	(23)
Return on Investment (%)_	3.30%	6.57%	(50)	The decrease in ratio is due to redemption of Preference shares on maturity

Opportunities and Threats

Opportunities:

Aptech is well-positioned to tap into a wide array of emerging opportunities within the expanding skilling and creative technology space. The growing adoption of immersive and AI-powered technologies across sectors such as healthcare, real estate, manufacturing and retail is creating demand for talent with cross-functional digital expertise. The Company?s curriculum in areas like digital content creation, real-time production and AI-led storytelling directly addresses this need. Additionally, the increasing use of gamification and Computer-Generated Imagery (CGI) in education, marketing and industrial training presents new avenues for business expansion beyond conventional media domains. Aptech is also capitalising on the rise of transmedia storytelling and gig-based employment models, which continue to reshape how content is produced and consumed. These trends, along with the Company?s investments in scalable training models offer substantial headroom for growth across both existing and untapped market segments.

Threats:

Aptech faced short-term challenges due to the Hollywood strike and intensified competition in the beauty segment, yet these also opened avenues to recalibrate offerings and reinforce alignment with industry needs. The Company recognises the evolving creative tech landscape, fuelled by advancements in AI, immersive media and gamification, which demands ongoing curriculum innovation and faculty development. Aptech sees rising learner expectations and the growth of niche EdTech platforms as a call to deliver differentiated, future-ready training formats. The Company remains well-positioned to lead with its integrated, institute-based model enhanced by digital delivery.

Business Outlook

Aptech is focused on strengthening its growth trajectory, with particular attention to recovery in the Media & Entertainment sector following recent industry disruptions. The Company is actively adapting to evolving market dynamics through the introduction of future-ready initiatives such as the Virtual Production Academy and Gen-AI programmes. Aptech has identified four core strategic pillars to drive long-term value: leveraging AI and digital technologies, enhancing internal capabilities, revitalising its Institutional business and expanding operations in evolving markets. A continued focus on operational stability, transparent financial practices and sustainability further strengthens its foundation for scalable growth. The Company is poised to remain relevant and competitive by aligning its offerings with digital entrepreneurship, immersive tools and agile workforce trends as the global content and experience economy undergoes rapid transformation.

Human Capital Management (HR)

During the financial year, the Human Resources function played a pivotal role in aligning people strategies with the Company?s overarching business objectives, thereby strengthening our positioning as an employer of choice. Key initiatives focused on nurturing a cohesive, high-performance outcome-driven culture, accelerating digital transformation across onboarding and orientation processes, and leveraging advanced workforce analytics to drive data-informed talent decisions. To support agile and personalized learning, AI-powered microlearning modules were introduced, enhancing employee development and engagement. Reflecting the effectiveness of these initiatives, the Company sustained a strong employer brand, with a 4.2 rating on Glassdoor as of March 31, 2025.

The on-roll employees an on March 31, 2025 was 483. The attrition in FY 2024-25 increased to 28.5% from the 24.9% in FY 2023-24. The slight increase in the attrition is attributed to various market pull factors.

Risks, Challenges and Concerns

Aptech operates in a dynamic and evolving business environment and is committed to proactively identifying and mitigating risks that could potentially affect its operations. The Company is exposed to credit risk, foreign exchange fluctuations and sector-specific challenges and has implemented stringent risk management strategies to address these effectively. Aptech promotes a culture rooted in quality and process orientation, which enables the organisation to navigate operational disruptions arising from both internal and external factors. The Company has established comprehensive operational protocols and disaster recovery mechanisms, supported by regular staff training and audits, to ensure preparedness and a swift response during contingencies.

Strategic Initiatives and Workforce Strengthening

Aptech consistently updates and diversifies its course offerings by leveraging in-depth market research and forging strategic industry partnerships to stay aligned with emerging trends. The Company adheres to high-quality benchmarks and capitalises on its strong brand equity to maintain a competitive advantage in the vocational training space. Aptech promotes a work culture that values talent retention and motivation through competitive remuneration, structured career development and a supportive environment. The Company continually upgrades its IT systems and infrastructure while ensuring that employees remain proficient through frequent upskilling and training initiatives. Aptech effectively manages seasonal fluctuations within the education sector by carefully aligning financial and operational activities to ensure consistent performance throughout the year.

Commitment to Compliance, Quality and Long-Term Sustainability

The Company remains fully compliant with the evolving regulatory landscape by maintaining close engagement with relevant authorities and monitoring changes proactively. Aptech reinforces its service quality through regular curriculum revisions, rigorous quality control procedures and continuous training for faculty to ensure learners receive up-to-date and industry-relevant education. The Company is firmly committed to sustaining its long-term growth by strengthening risk mitigation mechanisms, enhancing institutional resilience and delivering consistent value to all stakeholders.

Internal Controls and Their Adequacies

Aptech has established a comprehensive internal control framework to ensure efficient operations, compliance with policies, accurate financial reporting and effective risk management. The framework is tailored to suit the scale and complexity of the Company?s domestic and international operations and is reviewed periodically to maintain its effectiveness in a dynamic business environment. The internal control system also promotes transparency, protects assets and supports operational excellence.

Key features of the internal control framework include:

A clear organisational hierarchy with defined roles and responsibilities

Documented and standardised policies and procedures

Regular performance monitoring and reviews by management

Internal and statutory audits to ensure regulatory compliance

Oversight and governance by the Board of Directors The Company remains committed to continuously strengthening its internal control systems to enhance governance, ensure transparency and support sustainable business performance.

Cautionary Statement

Certain statements herein are forward-looking statements, which involve several risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including but not limited to the statements containing the words ‘planned?, ‘expects?, ‘believes?, ‘strategy?, ‘opportunity?, ‘anticipates?, ‘hopes or other similar words. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business Process Outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, customer acceptances of

our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and cost overruns on fixed-price, fixed time, frame contracts, client concentration, restrictions on immigration,

our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks,

our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages on our service contracts, the success of the companies / entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India and unauthorised use of our intellectual property, other risks, uncertainties and general economic conditions affecting our industry. There can be no assurance that the forward-looking statements made herein will prove to be accurate and issuance of such forward-looking statements should not be regarded as a representation by the Company or any other person that the objective and plans of the Company will be achieved.

All forward-looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.