Autopal Industries Ltd Management Discussions

The technology sector in India is rapidly evolving, with increasing adoption of Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), data analytics, and digital transformation solutions across government and enterprise segments. Public-sector digitization, citizen-centric service delivery, and the growing need for workflow automation are driving demand for scalable, secure, and domain-specific technology platforms.

RNIT AI Solutions Limited operates within this expanding ecosystem, offering AI-driven facial identification systems, IoT-enabled solutions, digital and mobility platforms, and open-source ERP implementations. With its strong technological capabilities and customer-centric approach, the Company is well positioned to leverage these industry developments and support large-scale digital transformation initiatives across Government departments and enterprise clients.

OPPORTUNITIES AND THREATS OPPORTUNITIES

GROWING ADOPTION OF AI & DIGITAL TECHNOLOGIES:

The accelerated shift towards AI, Machine Learning, IoT, and automated decision-support systems across government and enterprise sectors offers strong opportunities for solution providers with domain expertise and scalable platforms.

GOVERNMENT-LED DIGITAL TRANSFORMATION:

Increased focus on e-governance, last-mile service delivery, real-time monitoring, and identity management solutions creates demand for AI-enabled citizen-centric platforms, an area where RNIT has established strengths.

RISING DEMAND FOR CUSTOMIZED INDUSTRY-SPECIFIC SOLUTIONS:

Organizations are increasingly seeking tailored technology solutions to address operational inefficiencies and compliance requirements, enabling RNIT to leverage its capabilities in building domain-specific digital ecosystems.

SHIFT TOWARD OPEN-SOURCE AND CLOUD ADOPTION:

Greater acceptance of open-source ERP and cloud-based architectures presents opportunities for cost-effective, scalable deployments across diverse departments and enterprises.

THREATS

RAPID TECHNOLOGICAL EVOLUTION:

The AI and digital transformation landscape is evolving quickly, requiring continuous investment in innovation, advanced talent, and emerging technologies to maintain competitive relevance.

INTENSIFYING MARKET COMPETITION:

The Company faces competition from established IT service providers, SaaS platforms, and new-age AI companies, which may exert pressure on pricing, talent retention, and market positioning.

REGULATORY AND DATA GOVERNANCE REQUIREMENTS:

Increasing scrutiny around data privacy, security, AI ethics, and compliance frameworks may lead to additional operational and legal obligations for technology solution providers.

SEGMENT-WISE PERFORMANCE

The Company operates in a single reportable segment comprising AI design and development, software development, and support and maintenance services. Accordingly, separate segment-wise reporting is not applicable.

REVENUE AND INCOME

For FY 2024 2025, the Company recorded Revenue from Operations of

3,222.59 lakhs, compared to no operational revenue in FY 2023 2024. This significant increase reflects the commencement of full-scale operations and business integration during the year. Other Income stood at 5.68 lakhs, resulting in a Total Income of

3,228.26 lakhs, as against nil in the previous year.

OPERATIONAL EXPENSES AND PROFITABILITY

Total expenses for FY 2024 2025 amounted to 2,497.74 lakhs, substantially higher than 31.63 lakhs in FY 2023 2024, primarily on account of operational ramp-up following integration.

Despite the increase in expenses, the Company achieved a strong operating performance, reporting a Profit before Interest, Depreciation & Tax (PBIDT) of 1,028.12 lakhs, compared to a loss of 16.67 lakhs in the previous year.

Depreciation stood at 275.63 lakhs, reflecting additions to fixed assets and consolidation of operations. Finance costs remained low at 21.97 lakhs, indicating prudent and efficient capital management.

PROFITABILITY AFTER TAX

The Company reported a Profit before Tax (PBT) of 730.52 lakhs, marking a sharp turnaround from the loss of 31.63 lakhs in FY 2023 2024. After accounting for deferred tax of 9.58 lakhs, the Profit after Tax (PAT) stood at 720.94 lakhs, compared to a net loss in the preceding year.

EARNINGS PER SHARE (EPS)

The EPS (Basic and Diluted) improved from (0.90) in FY 2023 2024 to

1.00 in FY 2024 2025, reflecting improved financial performance and enhanced shareholder value.

REVIEW OF OPERATIONS

Pursuant to the Scheme of Arrangement, the operational results of RNIT Solutions and Services Limited including Revenue of 3,222.59 lakhs and Profit After Tax of 720.94 lakhs for FY 2024 2025 have been incorporated into the Company s financial statements. This integration has significantly enhanced the Company s operational scale, strengthened its financial performance, and improved its overall business position.

OUTLOOK

The adoption of AI-driven automation continues to accelerate as organizations prioritise operational efficiency and data-driven decision-making. Advancements in edge computing, cloud technologies, and IoT are enabling real-time processing and expanding the scope of intelligent applications. Continued investments in AI, analytics, and cybersecurity position technology solution providers to tap into sustained demand across both public and private sectors.

Despite macroeconomic fluctuations, the broader technology industry is expected to remain resilient, supported by ongoing digital transformation initiatives and the need for scalable, high-value enterprise solutions.

RISKS AND CONCERNS

The rapid pace of technological change requires continuous investment in innovation, skill development, and infrastructure to remain competitive. Market volatility shifts in client spending patterns, and evolving regulatory requirements particularly in the areas of data privacy, cybersecurity, and AI governance may pose operational and compliance challenges. The sector also faces increasing competitive pressure, which could impact pricing and project acquisition. Organizations must maintain agility and robust risk-management practices to navigate these uncertainties effectively.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems that are appropriate for the nature, scale, and complexity of its operations. These systems include well-defined policies and procedures designed to ensure operational efficiency and effectiveness, reliability of financial reporting, compliance with applicable laws and regulations, prevention and detection of fraud and errors, and safeguarding of assets.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company s financial results for FY 2024 2025 reflect the strong operational scale achieved following the integration of RNIT Solutions and Services Limited. Revenue from Operations increased significantly to

3,222.59 lakhs, driven by the commencement of full-scale business activities during the year. The corresponding increase in operating expenses reflects the expansion of operations; however, the Company delivered improved profitability, reporting a Profit After Tax of 720.94 lakhs compared to a loss in the previous year. This performance demonstrates enhanced operational efficiency and effective cost management following integration.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT

There were no material changes in the human resources and industrial relations front during the year. The Company continued to maintain a stable and harmonious work environment, with employee relations remaining cordial throughout the period. The Company remains focused on supporting its workforce and ensuring alignment with its operational requirements.

As of March 31, 2025, the Company had 63 employees .

KEY FINANCIAL RATIOS

Particulars	31-Mar-25	31-Mar-24	Variance (In %)
(a) Current Ratio	3.77	1.81	109%
(b) Debt-Equity Ratio	0.19	(1.35)	114%
(c) Debt Service	0.63	(0.01)	(5311%)
Coverage Ratio
(d) Return on Equity Ratio	0.25	0.02	1429%
(e) Inventory turnover ratio	-	-	-
(f) Trade Receivables turnover ratio	2.86	-	-
(g) Trade payables turnover ratio	1.96	-	-
(h) Net capital turnover ratio	1.05	-	-
(i) Net profit ratio	0.22	-	-
(j) Return on Capital	0.09	(0.04)	(302%)
Employed

*All the above variances of greater than 25% pertains due to scheme of merger.

DISCLOSURE OF ACCOUNTING TREATMENT

The Indian Accounting Standard (Ind-AS) notified under Section 133 of the Companies Act, 2013, read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 issued by the Ministry of Corporate Affairs and the applicable Accounting Standards/ Guidance Notes / Announcements issued by the Institute of Chartered Accountants of India as notified from time to time, have been followed in preparation of the financial statements of the company.

	On behalf of the Board of Directors
	For RNIT AI SOLUTIONS LIMITED
	Sd/-	Sd/-
	Raja Srinivas Nandigam	Neelima Nandigam
Date: 06.12.2025	Managing Director	Director
Place: Hyderabad	DIN: 08430111	DIN: 08430112