Avio Smart Market Stack Limited Management Discussions

1. COMPANY OVERVIEW

Avio Smart Market Stack Limited (ASMS / the Company), formerly known as Bartronics India Limited, is a company building technology-enabled businesses across three complementary verticals: diversified Financial Inclusion & Digital Services, Agri Supply Chain & Technologies, and Diagnostics & Healthcare. The Companys current promoters and management assumed control on 28th March 2023 upon successful implementation of a Resolution Plan and have since driven a structured transformation of the business, culminating in the Companys rebranding during FY 2025-26.

The Companys Financial Inclusion & Digital Services division has built a trusted rural and semi-urban distribution network over several years. The network extends across approximately 5,000 villages in 10 states, through relationships with 7 Public and Regional Rural Banks, and provides access to approximately 40 million rural population. This established last-mile presence is an important strategic asset and provides the distribution foundation for the Companys newer business initiatives.

Building on this foundation, the Company launched Project AVIO in December 2025 to develop a technology-enabled agri ecosystem connecting farmers, Farmer Producer Organisations (FPOs) and other participants across the agricultural value chain.

Over the next three years, management intends to pursue three strategic objectives under Project AVIO: digitally onboard 20 million farmers, open 1,000 smart agri-stores, and facilitate transactions with a GMV of USD 1 billion through rural commerce, sale of agri-inputs and market access for agricultural produce. These are strategic objectives and remain subject to market conditions, execution and applicable regulatory approvals.

In parallel, the Company has entered into a strategic partnership with Huwel Lifesciences Private Limited, a molecular diagnostics company developing indigenous diagnostic technologies, to establish a presence in Diagnostics & Healthcare.

During FY26, the Company acquired a 25.75% stake in Shree Naganarasimha Private Limited (SNN), an agro-food processing company, strengthening its participation in the agri-trade and food-processing ecosystem. The Companys strategy is to build progressively on its established rural distribution capabilities while developing complementary businesses across agriculture and healthcare.

Segment	Description	Strategic Rationale
Financial Inclusion & Digital Services	Rural-focused lending and financial-services distribution through an established last-mile network.	Foundational business and rural distribution backbone.
Agri Supply Chain & Technologies	Project AVIO ecosystem covering farmer onboarding, agri-commerce, input access and trade facilitation, supported by ecosystem partners including SNN.	Uses the Companys existing rural reach to participate in the fragmented agri-value chain.
Diagnostics &Healthcare	Strategic partnership into technology-led healthcare with Huwel and diagnostics. Diversification Lifesciences for molecular diagnostics and related healthcare applications.

2. INDUSTRY & MACRO-ECONOMIC OVERVIEW Macro-Economic Environment

Rural India remains an important driver of consumption and economic activity, supported by government welfare and infrastructure spending, increasing formalisation of credit and agri-trade, rising digital adoption and improving access to healthcare. These structural trends provide a relevant backdrop for the Companysrural-firststrategy across its three business verticals.

Financial Inclusion & Digital Services

The Indian microfinance and rural lending ecosystem continues to mature, with increasing emphasis on responsible lending, credit-bureau-based underwriting and digital disbursement and collection infrastructure. Demand for small-ticket credit and allied financial products remains relevant across rural and semi-urban markets. For ASMS, the opportunity extends beyond financial-services distribution. Its established rural network provides an on-ground platform that can support the development of additional rural-focused businesses.

Agri Supply Chain & Technologies

Indias agricultural value chain remains highly fragmented, with significant across input distribution, farm-gate price discovery, aggregation, storage, logistics and market access. Rising smartphone penetration, government emphasis on Farmer Producer Organisations and agricultural infrastructure, and increasing private investment in agri-tech are supporting the emergence of organised, technology-enabled models.

Project AVIO is positioned within this opportunity by connecting the Companys existing rural reach with four complementary capabilities: Agri Commerce, Trade Finance, Smart Retail and Crop Advisory. The Company is developing these capabilities progressively, supported by partnerships across warehousing, rural finance, mechanisation, bio-inputs and related areas.

The Company has not incorporated an external rupee/dollar market-size estimate for the Agri opportunity in this MDA. Instead, it has described the addressable opportunity through the scale of the Companys existing reach and the specific medium-term Project AVIO objectives. This avoids presenting a broad industry estimate as though it were the Companys own addressable market.

Diagnostics & Healthcare

The Indian diagnostics industry continues to benefit from rising health awareness, under-penetration of organised diagnostic infrastructure in Tier 2, Tier 3 and rural markets, and increasing adoption of molecular and specialised testing.

Huwel Lifesciences estimates the Indian infectious-disease testing opportunity at more than 5,000 crore annually. Huwels portfolio includes more than 140 molecular diagnostic products spanning tuberculosis, HPV, hepatitis, sepsis, antimicrobial resistance, respiratory and other infectious diseases, together with point-of-care testing capabilities.

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3. BUSINESS SEGMENT REVIEW

3.1 Financial Inclusion & Digital Services

T The Financial Inclusion & Digital Services division remains the Companys foundational business, providing access to credit and allied financial products across rural and semi-urban India. Its distribution network, built through years of on-ground presence, remains the launchpad for the Companys broader platform strategy.

- Segment revenue increased 7.7% year-on-year to INR 40.72 crore in FY26, compared with INR 37.79 crore in FY25, contributing approximately 39% of consolidated revenue.

- Segment result before interest and tax stood at INR 0.86 crore.

- The Company continued to focus on disciplined credit underwriting and collections.

- The divisions rural distribution network remains the shared foundation on which the Agri and Diagnostics initiatives are being developed.

Managements focus is to strengthen the core business while progressively increasing the utilisation of the established rural distribution network across the broader platform.

3.2 Agri Supply Chain & Technologies

Agri Supply Chain & Technologies emerged as the Companys largest business vertical in FY26, having been newly established during the year. The segment is built around Project AVIO, launched in December 2025, and seeks to connect farmers and other participants across the agricultural value chain.

Over the next three years, the Company intends to pursue the following strategic priorities: digitally onboard 20 million farmers, open 1,000 smart agri-stores, and facilitate USD 1 billion of GMV through rural commerce, sale of agri-inputs and market access for agricultural produce. These objectives are subject to market conditions and regulatory approvals.

Leadership strengthening

Recognising the strategic importance of the Agri Supply Chain & Technologies vertical to the Companys next phase of growth, the Company strengthened its leadership team with the appointment of Dr. Raja Krishnamurthy, an industry veteran, to lead the Agri-tech business. The appointment strengthens leadership capacity for the scale-up of Project AVIO and the broader Agri-tech strategy.

Ecosystem development

During FY26, the Company continued to build an ecosystem across agri retail, warehousing, rural finance, mechanisation, bio-inputs and related areas.

The Company strengthened its collaboration with AYOU through an investment. It also entered into strategic collaborations with ecosystem participants including Origo to support capabilities across warehousing, trade finance and logistics.

During FY26, the Company acquired 25.75% of SNN, pursuant to which SNN became an associate. SNN is engaged in manufacturing and trading of agro and food products and is intended to provide an on-ground agri-trade capability within the Companys broader ecosystem.

- Segment revenue stood at INR 60.69 crore in FY26, contributing approximately 58% of consolidated revenue.

- Segment result before interest and tax stood at INR 4.71 crore, making Agri the Companys largest segmental profit contributor.

- The segment had no comparable prior-year revenue base, having been established during FY26.

The emergence of Agri as the Companys largest revenue and profit-contributing segment in its first year is an important milestone. Managements focus is now on strengthening the ecosystem, expanding reach and progressively converting the Companys distribution and platform capabilities into sustainable commercial activity.

3.3 Diagnostics & Healthcare

The Company has entered into a strategic partnership with Huwel Lifesciences Private Limited, a molecular diagnostics company developing indigenous and cost-effective diagnostic technologies. Huwels portfolio includes more than 140 molecular diagnostic products covering tuberculosis, HPV, hepatitis, sepsis, antimicrobial resistance, respiratory and other infectious diseases.

The partnership provides the Company with opportunities in business development, revenue participation, product development and innovation, and expansion of diagnostic products across Indian and global healthcare markets.

During FY26, the Company invested INR 7.50 crore in Huwel as the first tranche of a planned INR 15 crore investment. The revised investment terms provide for an aggregate investment of INR 15 crore in two tranches and approximately 4.12% equity stake in Huwel on a fully diluted basis after completion of the investment, together with a strategic business collaboration and revenue-sharing arrangement.

- Diagnostics & Healthcare remained a nil-revenue, nascent segment in FY26.

Segment assets and liabilities stood at 7.50 crore each as at 31st March 2026.

Subsequent to year-end, the Company made an additional 7.50 crore investment in Huwel.

- The Company initiated discussions with the Mediciti Institute regarding clinical validation and adoption of Huwels diagnostic technologies.

The Companys near-term focus is on progressing validation, commercial development, market opportunities and deployment of the diagnostic technologies.

Path to Monetisation

The Companys investments in the Agri and Diagnostics ecosystems are at different stages of commercial development. While the timing of profitability from these investments cannot presently be determined with precision, management remains focused on progressing them through defined commercialisation milestones. The Company will continue to keep shareholders informed of material developments, including progress in customer adoption, revenue generation, scale-up and other indicators of commercial viability.

4. FINANCIAL PERFORMANCE

FY26 marked a significant improvement in the Companys operations increased approximately 160% year-on-year to 103.96 crore from 40.04 crore in FY25, while Profit After Tax increased approximately 240% to 5.94 crore from 1.75 crore.

The improvement was driven principally by the ramp-up of the newly established Agri Supply Chain & Technologies segment, alongside steady growth in the Financial Inclusion & Digital Services business. The Companys reserves turned positive at 3.72 crore during FY26, compared with negative reserves of approximately 2.20 crore in

FY25, and the Company achieved a positive net worth position.

Segment (INR in crore)	Revenue	Result (PBIT)	Assets	Liabilities
Financial Inclusion & Digital Services	40.72 Cr	0.86 Cr	34.92 Cr	3.93 Cr
Agri Supply Chain & Technologies	60.69 Cr	4.71 Cr	25.40 Cr	20.82 Cr
Diagnostics & Healthcare	0.00 Cr	0.00 Cr	7.50 Cr	7.50 Cr
Others / Unallocated	2.55 Cr	(0.03) Cr	0.22 Cr	34.09 Cr*
Total	103.96 Cr	5.54 Cr	68.04 Cr	68.05 Cr

* Unallocated liabilities are corporate liabilities not attributable to individual operating segments.

4.1 Financial ratios:

Reflects the increase in profit during FY26. The ratio is presented in accordance with the Companys disclosed formula.

Ratio	F.Y.2026	F.Y.2025	Variance	Basis / formula	Explanation
Current Ratio (in times)	1.07	1.26	-15%	Total Current Assets / Total Current Liabilities	Decrease primarily attribut- able to a reduction in cash and cash equivalents and the corresponding movement in current assets.
Debt-Equity ratio	0.26	0.01	2,461%	Debt (borrowings and lease liabilities, if any) / Total Equity	The increase is mainly due to the availing of a vehicle loan and inter Corporate loan during the year, resulting in an increase in borrowings relative to shareholders equity.
Debt Service Coverage ratio	5.23	(1.41)	-471%	Earnings available for debt service / Debt service	Improvement reflects the Companys improved earn- ings and debt-servicing ca- pacity following the additional borrowings.
Return on Equity	19.0%	6.37%	198%	Profit for the year / Average Total Equity	. Reflects the increase in profitability during FY26.
Inventory Turnover	2,471.47	26.93	9,077%	Sales / Aver- age Inventory	Driven by the increase in sales and relatively low average inventory during the year.
Trade Re- ceivables Turnover	7.35	6.91	6%	Revenue from op- erations / Average trade receivables	Reflects the increase in reve - nue from operations.
Trade Payables Turnover	8.18	30.75	-73%	Cost of rendering ser- vices + other expenses / Average trade payables	Reflects the increase in trade payables during the year.
Net Capital Turnover	1.18	0.36	230%	Revenue from operations / Average working capital	Reflects the increase in reve - nue from operations.
Net Profit Ratio	5.66%	4.28%	32%	Profit for the year / Total Income	Reflects the increase in - itability during FY26.
Return on Capital Employed	0.13%	0.04%	240%	Profit before tax + finance costs - inter- est income) / Capital employed	Reflects the increase in profit during FY26. The ratio is presented in accordance with the Companys disclosed formula.
Return on Investment	0.03%	0.01%	111%	Net Profit after tax / Average Total Assets	Reflects the increase in profit during FY26. The ratio is presented in accordance with the Companys disclosed formula.

The Companys borrowings increased during F.Y.2026. The Debt-Equity Ratio and Debt Service Coverage Ratio therefore reflect both the change in borrowings and the improvement in profitability during the year.

During F.Y. 2026, the Company also entered into an inter-corporate loan arrangement with Kinex India Private

Limited, identifiedin the Companys regulatory disclosure as a promoter. The transaction is a related-party funding arrangement and should be read together with the related-party disclosures in the financial statements.

5. OPPORTUNITIES & THREATS Opportunities

Large and underpenetrated rural and semi-urban markets across financial services, agriculture and diagnostics.

- Ability to leverage an established rural distribution network across complementary business lines.

- Approximately 40 million farmers within the Companys existing reach provide a substantial base for Project AVIO and other rural initiatives.

- Project AVIOs three-year objectives of 20 million farmer onboarding, 1,000 smart agri-stores and USD 1 billion of GMV provide a defined medium-term growth framework.

- Opportunity to build an integrated agri ecosystem spanning Agri Commerce, Trade Finance, Smart Retail, Crop Advisory and related supply-chain capabilities.

- Huwel provides access to indigenous molecular-diagnostics technologies across multiple disease categories and potential domestic and international markets.

- Strategic investments and partnerships provide opportunities to build capabilities and participate across different stages of the agri and diagnostics value chains.

Threats & Risks

- Agri concentration and execution risk: The Agri segment accounted for approximately 58% of FY26 revenue following its first-yearscale-up. Sustaining growth while maintaining appropriate margins and working-capital discipline will require continued execution.

- Execution and integration risk: The Company is developing multiple new partnerships and associates, and their effective integration and commercial contribution will be important to the strategy.

- Diagnostics commercialisation risk: Diagnostics & Healthcare remains pre-revenue. Returns on the Huwel investment will depend on successful validation, commercial adoption, regulatory requirements and scale-up.

- Working-capital and market risk: Expansion of Agri commerce and supply-chain activities may require appropriate working-capital management and may be affected by commodity prices, demand conditions and supply-chain dynamics.

- Credit risk: The Financial Inclusion business remains exposed to credit and collection risks and broader macro-economic conditions affecting rural borrowers.

- Agricultural and monsoon-related risk: Agricultural activity and rural income remain sensitive to monsoon conditions and other factors affecting agricultural output.

Regulatory and technology risk: Changes in financial-services, agriculture, healthcare and technology regulations, together with cybersecurity and technology-adoption risks, may affect the Companys businesses.

- Legacy matters: Matters relating to non-functional foreign subsidiaries written off in prior years remain under regularisation with respect to compliance and closure in the relevant jurisdictions.

- Related-party funding risk: The Companys use of promoter-related inter-corporate funding creates an additional related-party funding exposure that is subject to the terms, repayment profile and applicable approvals and disclosures.

Risk Management Framework

The Company follows a Board-approved risk management framework covering credit, operational, execution and reputational risks. The Audit Committee reviews financial results and associated disclosures on a quarterly basis.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has implemented internal control systems, integrated quality processes and risk-management frameworks designed to safeguard assets, support compliance and maintain operational discipline. Regular audits and business-continuity planning reinforce the Companys governance and control framework. As the Company expands into new business verticals and develops additional partnerships, management will continue to strengthen controls, reporting systems and processes commensurate with the scale and complexity of the businesses.

7. HUMAN RESOURCES

The Companys workforce remains an important component of its operating and transformation strategy, particularly given the importance of its rural field network and the development of its technology-enabled businesses.

The Company continues to invest in employee training and capability development, including exposure to emerging technologies such as AI, machine learning, blockchain and enterprise platforms. Industrial relations remained cordial during the year, supported by employee engagement and career-development initiatives.

The Company also strengthened leadership capability for its Agri-tech growth vertical through the appointment of Dr. Raja Krishnamurthy, an industry veteran, to lead the Agri-tech business.

The Company believes its people, particularly its rural field force, distribution network that underpins its broader platform strategy.

8 . OUTLOOK & SUBSEQUENT DEVELOPMENTS

The Company remains focused on strengthening its Financial Inclusion & Digital Services business while progressively scaling the Agri Supply Chain & Technologies and Diagnostics & Healthcare verticals.

Financial Inclusion & Digital Services

Management will focus on strengthening the core business and improving the utilisation of the established rural distribution network, which remains an important foundation for the Companys broader platform strategy.

Agri Supply Chain & Technologies

The Company will focus on strengthening Project AVIO, expanding its agri ecosystem and developing capabilities across Agri Commerce, Trade Finance, Smart Retail, Crop Advisory and related supply-chain activities. The three-year strategic objectives remain to digitally onboard 20 million farmers, open 1,000 smart agri-stores and facilitate USD 1 billion of GMV through rural commerce, sale of agri-inputs and market access for agricultural produce, subject to market conditions and regulatory approvals.

The Company also intends to deepen its ecosystem of strategic relationships across agriculture, warehousing, rural finance, technology and related areas.

Diagnostics & Healthcare

The Companys immediate focus is on progressing the Huwel partnership through validation, commercial development, market expansion and deployment of diagnostic technologies.

The Company will evaluate opportunities to scale the partnership across Indian and global healthcare markets, subject to applicable commercial, clinical and regulatory requirements.

Subsequent developments

- The Company made an additional INR 7.50 crore investment in Huwel Lifesciences in April 2026.

- The Company made a further INR 1 crore investment in Shree Naganarasimha Private Limited..

- The Company initiated discussions with the Mediciti Institute regarding clinical validation and adoption of Huwels diagnostic technologies.

- The Company continued to expand its agri-tech ecosystem through strategic collaborations, including initiatives involving FPO digitisation, bio-inputs and rural digital infrastructure.

Managements focus remains on disciplined execution, commercial validation and scalable development across the three business verticals, while keeping shareholders informed of material developments and indicators of commercial progress.

9. CAUTIONARY STATEMENT

Statements in this report relating to objectives, projections, estimates or expectations may be forward-looking statements under applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to various factors, including economic conditions, regulatory changes, technological developments, market dynamics, competition, execution risks, access to funding and other factors affecting the Companys businesses.

- Diagnostics & Healthcare remains pre-revenue; realising returns on the INR 7.50 crore (and further planned) investment in Huwel depends on successful commercial scale-up.

- Legacy matters relating to non-functional foreign subsidiaries (written off in prior years) remain under regularisation with respect to compliance and closure in the relevant jurisdictions.

- Credit risk in the Financial Inclusion business and broader macro-economic/monsoon-dependent risk affecting rural income across all three segments.

Risk Management Framework

The Company follows a Board-approved risk management framework covering credit, operational, execution and reputational risks, with the Audit Committee reviewing financial results and associated disclosures each quarter,