Athena Global Technologies Ltd Management Discussions

AN OVERVIEW

Your Company is a global provider of Software Application Development, Digital Transformation and QA & testing and services to enterprises.

Our AI services encompass everything from tailored and real-time customer interactions to dedicated processes, followed by less to no errors, virtual predictive and diagnostic applications. We exploit blockchains Internet of Value to deliver a more sustainable and secure digital foundation for your business. Our data scientists facilitate frictionless and rapid call to actions to design models that can bring “art of the possible” solutioning to your business. We leverage IoT-based solutions and services to dramatically enhance your engagement with customers. With the help of data analytics and digital connectivity, we design actionable intelligence to fuel higher levels of efficiency, innovation and new business models. Right from robotic process automation to building chatbots, we offer a varied range of business process automation solutions powered by cognitive technologies. We build Chatbots and Voicebots that will help consumers find solutions irrespective of device, time, and location. Boost your business grade with our enhanced application development services. We help you build future-proof products with our powerful product engineering capabilities. We are the custodian of your production environment. We ensure frictionless business processing and will not let any bugs get through. Our Company is led by a group of professionals from diverse and rich background, who are fully prepared to take the challenges of tomorrows marketplace. With our primary focus on Quality, Longterm client relations and Obtaining a trusted name in the industry. Our Company strongly believes in contributing towards the betterment of society and endeavours to create a positive impact, while achieving its business goals. Despite global economic headwinds and geopolitical uncertainties, Athena demonstrated resilience and agility, backed by its strong technological capabilities, customer-centric approach, and a growing digital service portfolio.

INDUSTRY OVERVIEW

in 2025, the global market for software application development, digital transformation, and QA & testing services is experiencing significant growth and transformation, driven by technological advancements and increasing enterprise demand for digital solutions. The software development market is projected to reach USD 1,027.96 billion by 2032, with a CAGR of 10.1% from 2025 to 2032. The digital transformation market is also experiencing strong growth, with a projected market size of $2116.91 billion in 2025. The software testing and QA services market is expected to reach USD 115.4 billion by 2032, with a CAGR of 13% from 2025 to 2032. In 2025, the Application Development, Digital Transformation, and QA & Testing services landscape is characterized by a strong emphasis on automation, AI integration, and a shift-left approach to quality assurance. In essence, the industry will see a move towards intelligent, integrated, and user-centric QA practices that are aligned with the principles of Agile and DevOps. This will require businesses to invest in new technologies, upskill their QA teams, and adopt a strategic approach to quality assurance that drives business value. Businesses are increasingly reliant on technology, driving a need for faster development cycles, robust security, and enhanced user experiences. This necessitates a transformation of QA from a siloed function to an integrated, strategic part of the development process.

In, 2025 will witness the convergence of several transformative technologies, creating a synergistic impact on businesses. Artificial intelligence (AI), the Internet of Things (IoT), and blockchain will intertwine, unlocking unprecedented capabilities. AI will also analyze the massive data streams generated by IoT devices, enabling real-time decision-making and process optimization. Blockchain will ensure secure and transparent data management across complex networks, fostering trust and efficiency

ECONOMIC OVERVIEW

The global IT services industry in FY 2024-25 witnessed a shift in client demand towards value-driven transformation, AI integration, automation, and cloud-native development. Enterprises prioritized operational efficiency and digital resilience, and service providers were increasingly expected to deliver outcomes beyond traditional IT support. Athena leveraged these trends to expand its digital transformation and cloud services business, focusing on industry-specific solutions, robust delivery models, and AI/ML-driven innovations. The global market is projected to surpass $750 billion, with enterprise software spending alone reaching $1.25 trillion. The Increase Demand for customized apps is expected to propel the growth of the application development software market.

BUSINESS OUTLOOK

As we step into the next fiscal year, Athena Global Technologies Limited remains firmly positioned to capitalize on the ongoing digital transformation wave across industries. The evolving demands of enterprises for agility, resilience, and innovation continue to create new growth opportunities for our core service areas Software Application Development, Digital Transformation, and Quality Assurance & Testing. During FY 2024 25, Athena Global Technologies experienced a mixed performance characterized by modest revenue growth and significant challenges in profitability. Despite this, Athena remains focused on strategic realignment aimed at strengthening its core IT service capabilities, optimizing cost structures, and enhancing operational efficiencies. As the global demand for digital transformation continues to grow, the company is committed to leveraging its expertise to capture new opportunities, stabilize margins, and return to sustainable profitability in the coming fiscal year.

Despite these headwinds, Athena remains focused on strategic execution and long-term value creation. The company is undertaking measures to streamline operations, strengthen cost discipline, and prioritize high-margin service lines. Continued investments in client-centric innovation, digital capabilities, and operational efficiency are expected to improve business performance in the coming year. Athena is confident in its ability to leverage its technical strengths and industry insights to drive sustainable growth, while navigating an increasingly competitive and technology-led business environment.

INDUSTRY STRUCTURE AND DEVELOPMENT:

IT SECTOR:

Global IT service providers are equipped to support Enterprises across various industries to overcome the current challenges, with a wide range of offerings in software development, digital transformation, IT business solutions and consulting, research and development, technology infrastructure and business process services.

In 2025, the global Information Technology (IT) industry continues to be a critical enabler of business innovation, digital transformation, and operational efficiency across sectors. The industry is characterized by rapid technological evolution, with widespread adoption of AI/ML, cloud-native architectures, cybersecurity solutions, and low-code platforms reshaping how enterprises operate. Demand remains strong for services in cloud migration, automation, data analytics, and application modernization, driven by enterprises seeking agility, resilience, and customer-centricity.

India retains its position as a global IT services powerhouse, supported by a skilled talent pool, cost competitiveness, and strong digital infrastructure. The domestic IT industry has also seen steady growth, fueled by government initiatives under the “Digital India” mission and rising technology investments from startups and MSMEs. However, the sector faces challenges including talent shortages in niche skills, pricing pressures, and evolving client expectations around faster, outcome-based delivery models.

Within this dynamic environment, Athena Global Technologies remains committed to aligning its offerings with evolving market needs. By focusing on high-growth areas such as digital transformation, application modernization, and quality assurance services, Athena aims to leverage its technical capabilities and customer-centric approach to deliver measurable outcomes. The company continues to invest in innovation, talent development, and strategic partnerships to enhance its competitiveness and support long-term growth in a rapidly transforming IT ecosystem.

REAL ESTATE SECTOR:

Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations. Real estate sector is projected to reach $1 trillion by 2030, contributing significantly to the countrys GDP.

The sector is expected to contribute nearly 13% to the GDP in 2025, up from around 7% in the past decade. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS:

Athena Global Technologies continues to leverage its core strengths in software application development, digital transformation, and quality assurance services. The company benefits from an agile and client-centric delivery model, supported by a knowledgeable leadership team and strategic partnerships that enhance solution quality and market access. These capabilities position Athena to address evolving enterprise needs with speed and flexibility. ATHENA GLOBAL TECHNOLOGIES LIMITED focuses on IT core activities i.e., enterprise information management, enterprise integration services, Data Ware housing services. We leverage expertise in Artificial Intelligence, Bloch chain, Data Science, Internet of things, RPA, Chatbots and voicebots, Application development, Product Engineering, QA & Testing and other allied services to its Clients. Its clients include organizations from various sectors of the economy such as financial, healthcare, oil, and pharmaceuticals, retail, business services, education, IT and government.

However, the company operates in a highly competitive IT services landscape, where pricing pressure and technology disruption remain persistent threats. Larger, well-capitalized players pose a significant challenge, and rapid advancements in technology demand constant upskilling and innovation. Additionally, client budget constraints, particularly in global markets, may impact project timelines and revenue growth.

On the risk and concern front, Athena faces continued pressure to improve operational efficiency and restore profitability following a challenging financial year. Dependence on key clients or markets could affect revenue stability, and the growing demand for digital skills makes talent retention and acquisition a critical challenge. The company must also remain vigilant in complying with evolving global data protection regulations and governance standards to mitigate legal and reputational risks. Athena remains committed to addressing these challenges proactively while pursuing sustainable growth in the dynamic digital services landscape.

By considering the above stats, the growths that Indian start-ups delivering are remarkable. We can say that the operations of our wholly owned subsidiary named as Tutoroot Technologies Private Limited which is a start-up of our listed entity is considered as one of the oppurinities for the consolidated growth which in turn results to improve the consolidated income and improve segment wise revenue at the end. Tutoroot Technologies Private Limited, a digital education platform and learning app, has further accelerated Athenas entry into the fast-growing edtech space. Tutoroots Primary objective is to carry on the business of imparting training, education in the field of online and digital and all types of school, university or any recognized institute courses, the business of both formal and informal education. to train students in both India and abroad for various educational programs including training for all competitive examinations.

Through Tutoroot, Athena taps into new-age demand for remote learning, personalized education, and technology-driven academic engagement. The platforms reach and adaptability have opened doors to institutional partnerships, product customization opportunities, and recurring subscription-based revenues. And as the Government of India has also providing various incentives and schemes to the star t-ups which are helpful for the betterment of the start-ups.

Athena Global has also a material subsidiary named as Medley Medical Solutions Private Limited (Medley) which operates its business in a unique way. Athena Global Technologies continues to strengthen its growth strategy through strategic alignment .Medley Medical Solutions, a digital healthcare platform specializing in B2B and B2C medicine delivery, plays a pivotal role in expanding Athenas footprint in the fast-growing health-tech sector. Leveraging technology to streamline last-mile delivery, order management, and pharmacy logistics, Medley creates strong synergies with Athenas digital infrastructure capabilities. Its scalable business model, recurring order volumes, and integration of technology-driven healthcare services contribute to stable, diversified revenue streams for the group. Medleys primary objective is providing health related services which majorly includes development and promotion of telemedicine and distant medical facilities in remote areas and to provide communication amongst medical community by dissemination of specialized knowledge through a technologically advanced network and to develop various means of integration of technological advancement in various data transmission fields with various modes of medical facilities electronically.

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

Revenue is recognized, when the company satisfies a performance obligation by transferring a promised good or service to its customers. The company considers the terms of the contract and its customary business practices to determine the transaction price.

Performance obligations are satisfied at the point of time when the customer obtains controls of the asset.

The Segment wise performance of the Company is reported as follows:

IT Segment & SEZ

Athena Global Technologies operates in the IT segment, providing software development and consulting services in the SEZ property located in manikonda. The company has a presence in Special Economic Zones (SEZs), which offer favorable business conditions, including tax incentives and streamlined regulations. Athena with its strategic presence in SEZs property situated at Manikonda, despite reporting a decline in profits, Athena Global Technologies has shown revenue growth, with a year-on-year increase in net sales. The companys growth prospects are promising, driven by increasing demand for software development and consulting services. By expanding its services and exploring new initiatives, Athena Global Technologies is well-positioned to capitalize on emerging opportunities in the IT segment.

OTHER BUSINESS SEGMENTS

Athena Global Technologies Limited has five segments reporting on consolidated basis. The five segments include, Software services, Real Estate, Online pharmacy platform services, Online Trade of pharmaceuticals products, Online Education services.

As Indias largest digital platform for pharmacy businesses and virtual patient care solution, MedleyMed has helped pharmacies and virtual care providers by providing optimal solutions to help them manage their day-to-day business for more than 20.

Our Wholly owned subsidiary company, Tutoroot Technologies Private Limited which is a start-up company serve as online education provider to the students. Through Tutoroot, Athena taps into new-age demand for remote learning, personalized education, and technology-driven academic engagement. The platforms reach and adaptability have opened doors to institutional partnerships, product customization opportunities, and recurring subscription-based revenues. These days due to the advancement in the technology, everything has become online, today there are many online education providers in the market, but our business is different in approach among the other players in the market. We undertake various innovative procedures for the teaching, that kept us different among the other players.

Today, the MedleyMed platform is poised to become the worlds leading customizable, integrated pharmacy and telehealth solution with features that stand out from the rest including better pricing and better margins based on data-driven, real time comparison shopping, advanced supply chain management, contracting, and inventory controls. Medley strengthens Athenas presence in a recession-resilient and high-demand vertical, offering steady revenue streams and long-term scalability. Medley creates strong synergies with Athenas digital infrastructure capabilities. Its scalable business model, recurring order volumes, and integration of technology-driven healthcare services contribute to stable, diversified revenue streams for the group.

FUTURE OUTLOOK:

Looking ahead, Athena Global Technologies remains focused on driving sustainable growth by strengthening its core service offerings and diversifying into high-potential digital sectors. The company aims to enhance its capabilities in software development, digital transformation, and quality assurance by investing in emerging technologies, expanding global delivery capacity, and deepening client relationships. Strategic initiatives through Medley Medical Solutions and Tutoroot Technologies Private Limited are expected to create additional revenue streams and broaden Athenas presence in the healthcare and education technology domains. Operational efficiency, margin improvement, and innovation-led differentiation will remain key priorities as the company navigates a competitive market environment. With a clear vision and a resilient business model, Athena is well-positioned to capitalize on the ongoing demand for digital solutions and deliver long-term value to its stakeholders.

As highlighted in the economic and industry review, Athena can expand its global footprint by targeting international markets , external factors such as world economy, geo political and policy environment is likely to be a mixed bag with no net impact on performance potential. The Indian IT players have made a transition to remain relevant, skilled and strategic partners to their customers. The overall IT industry and Indian IT services business is expected to show a moderate growth trend.

To further sustain and nurture this growth potential, the company shall Transforms the core services into modular, platform-based solutions Company will be taking critical new initiatives going forward. Continued investments in talent development, enhanced infrastructure and an accent on new approaches based on design thinking capability built across organizational levels will be invested during the next fiscal. Investing in AI, machine learning, and data analytics can allow Athena to offer advanced decision-support tools, intelligent automation, and predictive solutions to enterprise clients positioning itself as a value-adding technology partner. By developing tailored digital solutions for sectors like healthcare, education, fintech, and logistics, Athena can deepen client engagement and command premium pricing in niche verticals. Strengthening capabilities in cloud-native development, DevOps, and microservices architecture can help Athena meet increasing enterprise demand for agility, scalability, and rapid deployment.

Adopting strong environmental, social, and governance (ESG) practices such as green IT, digital accessibility, and ethical AI can improve Athenas brand reputation and align it with investor expectations. Establishing innovation centers and talent incubators can foster a culture of continuous learning, helping Athena stay ahead in fast-evolving digital technologies and attract top talent. Tapping into e-governance and smart city initiatives could provide stable, long-term projects and support national digital infrastructure development.

The Company has good prospectus in the coming financial year and management is confident of getting new projects.

RISK AND CONCERNS

Athenas Board of Directors and executive management promote a risk-aware and risk free environment to protect the stakeholders of the company and ensure timely and quality delivery of projects/services to our client. Your executive management ensures transparency.

Your management took various steps in mitigating the risks like l Implement robust security measures, such as secure coding practices and regular testing. l Invest in talent development and recruitment to address skill gaps l Adopt agile methodologies and collaborative project management to ensure flexibility and clear communication. l Monitor market trends and regulatory changes to adapt quickly l Prioritize quality assurance and testing to ensure product reliability and security.

INTERNAL CONTROLS AND THEIR ADEQUACIES:

The Internal Control System comprises of exercising controls at various stages and is established in order to provide reasonable assurance for:

l Safeguarding Assets and their Usage, l Maintenance of Proper Accounting Records and l Adequacy and Reliability of the Information used for carrying on Business Operations.

The key elements of the system are as follows:

a) Existence of clearly defined Organizational Structure and Authority. b) Existence of Corporate Policies for Financial Reporting and Accounting c) Existence of Management Information System updated from time to time as may be required. d) Existence of Annual Budgets and Long Term Business Plans.

e) Periodical Review of Opportunities and Risk factors depending on the global/Domestic scenario and to undertake measures as may be necessary.

HUMAN RESOURCES STRATEGY:

The Human Resources (HR) strategy is focused on creating a performance-driven environment in the company, where innovation is encouraged performance is recognized and employees are motivate to realize their potential.

HR is the core of the company, influencing change, building cultures and capabilities. The HR processes are continuously evolving and aligning with the changing business requirements. HR is structured into the specialized business units to enable them respond to the needs of their customers and get more strategic advantage.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

In FY 2024-25, the Company registered Revenue from Operations of Rs.1217.80 Lakhs compared to Rs. 970.95 Lakhs in the previous year. The Company has recorded a net loss of Rs.(1411.98) Lakhs for the FY 2024-25 compared to previous year 2023-24

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATION:

		Standalone
Financial				Deviation	Reason
	Formula
Ratios				%	for Change
		2024-25	2023-24
Debtors Turnover	[Revenue from operations/	0.99	2.77	-21%	Increase in debtors
Ratio (times)	Average Trade receivables]				realisation time
Current Ratio	CurrentAsset/Current Liability]	0.73	1.07	-32%	Change in debtor
(times)					realisation time related
					to subsidiary companies
Debt Equity	[Debt/Shareholders Equity]	0.63%	0.48	30%	Increase in the
Ratio (times)					Unsecured Loans
Return on equity	[Profit for the year (before	(0.05)	1.83	-104%	During the FY 2023-
ratio (in %)	exceptional items and after				24,the companies profits
	tax)/Average Total Equity				are high due to the profit
					recognised on the fair
					value measurement of
					Investment Property
Net Profit	[Profit After Tax/Revenue	-1.15	21.98	-105%	During the FY 2023-
					24,the companies profits
Margin (%)	from Operations]
					are high due to the profit
					recognised on the fair
					value measurement of
					Investment Property.
Return on	[Profit for the year (before	-0.01	-0.01	-74%	During the FY 2023-
Networth (%)	exceptional items and				24,the companies
	after tax)/Net Worth]				profits are high due to
					the profit recognised on
					the fair value
					measurement of
					Investment Property.
Return on	[Income generated from	-	-	-	NIL returns as the
Investment	invested funds/ Average				subsidary incurring
	invested funds in treasury				losses
	investmens]
Debt service	[Earnings before debt service	(0.08)	(0.39)	-78%	The profits are less as
coverage ratio	= Net profit after taxes +				there is a reduction in
(in times)	non cash operating expenses				revenue
	+ Interest + Other non cash
	adjustments]/[ Debt service
	= Interest + principle
	repayments]

Disclosure of Accounting Treatment:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2025, together with the comparative period data as at and for the year ended March 31, 2025, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

Cautionary Statement:

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.