B2B Software Technologies Ltd Management Discussions

[Pursuant to Regulation 34(2)(e) read with Part B of Schedule V to the SEBI (Listing Obligations and

Disclosure Requirements) Regulations, 2015]

(For the year ended March 31, 2026)

1. Industry Structure and Developments

1.1 Global Economic Environment

Global economic growth remained moderate during the year amid continuing geopolitical uncertainties, inflationary pressures, elevated interest rates, and slowing international trade. Despite these headwinds, India continued to be one of the fastest-growing major economies, supported by robust domestic demand, increasing digital adoption, sustained government infrastructure spending, and continued investment in technology and innovation. Growing enterprise investment in cloud computing, cybersecurity, Artificial Intelligence ("AI"), healthcare digitization and automation continue to create significant opportunities for technology solution providers such as the Company.

1.2 Industry Overview

The acceleration of digital transformation across industries continues to drive demand for enterprise technology solutions. Healthcare organizations are increasingly adopting AI-enabled clinical systems, advanced analytics, telehealth and digital patient-engagement platforms, while enterprises across sectors continue to migrate to cloud-based ERP platforms and invest in automation, cybersecurity and AI-powered decision-support systems. Microsoft Dynamics 365 continues to gain market acceptance globally, creating opportunities for implementation partners with industry-specific expertise and proprietary intellectual property ("IP"), even as the broader on- premise/legacy ERP implementation market matures and faces pricing and margin pressure.

2. Business Overview and Segment-wise Performance

B2B Software Technologies Limited ("the Company") is a technology solutions company focused on Healthcare Information Systems and Enterprise Digital Transformation. Over the last twenty-five years, the Company has built deep expertise in healthcare software and Microsoft Dynamics ERP solutions, and has, over the last two years, made focused investments to build a high-growth Artificial Intelligence, Machine Learning and Cybersecurity capability. The Companys business is now organized around three strategic verticals: (i) Healthcare Solutions, (ii) Emerging Technologies - AI, ML and Cybersecurity, and (iii) Enterprise ERP Solutions.

2.1 Healthcare Solutions Division - GeniusDoc USA

The Healthcare Division continues to provide software development, product enhancement, maintenance, AI integration and advanced analytics services for the GeniusDoc Electronic Medical Records ("EMR") platform in the United States. The Companys healthcare expertise spans EMR, Practice Management (PM), Revenue Cycle Management (RCM), Electronic Prescribing of Controlled Substances (EPCS), Population Health Management, Telehealth, Healthcare Analytics and Electronic Data Interchange (EDI). The platform supports multiple medical specialties and integrates with major hospital systems, laboratories, pharmacies and healthcare networks across the United States.

Key capabilities:

• AI-enabled clinical documentation with Voice-to-Text conversion

• Natural Language Processing (NLP)-based physician assistance

• AI-powered Clinical Decision Support Systems

• Precision Medicine and Oncology Analytics

• Population Health Management and preventive care analytics

• Intelligent chatbot agents for healthcare workflows

• Electronic claims processing and automated remittance posting

• Mobile healthcare applications and Telehealth solutions

2.2 Emerging Technologies Division - AI, Machine Learning and Cybersecurity

During the year, the Company continued to scale the dedicated Emerging Technologies and AI Division established in 2024-25, which the management regards as its primary growth engine going forward. The Division is being deliberately built out with an initial and deepening focus on AI-led healthcare use cases, reflecting the natural synergy with the Companys twenty-five-year healthcare domain expertise, while extending its reach into cybersecurity and cloud-native transformation for enterprise clients. This vertical is receiving the highest share of incremental management attention and investment within the Companys portfolio.

Core focus areas:

• Artificial Intelligence, Large Language Models (LLMs) and Deep Learning

• Machine Learning and AI-powered Revenue Cycle Management (RCM) insights

• LLM-integrated enterprise and clinical workflows

• Cybersecurity and Cyber Audits for Healthcare and ERP environments, including HIPAA compliance and privacy assessments, threat intelligence and vulnerability scanning

• Cloud migration to Azure, AWS, Google Cloud and Oracle Cloud

• Robotic Process Automation (RPA) and digital transformation

• Blockchain applications

• Data Warehousing, Data Mining and Advanced Analytics

• Internet of Things (IoT) and digital transformation

• Low-code and no-code development tools

A key proof point of this strategy is the Companys long-term AI implementation engagement with Antelope Valley Cancer Centre, which demonstrates its capability to deliver large-scale, AI-enabled healthcare transformation projects and is expected to serve as a reference engagement for similar opportunities. The Company intends to continue directing a disproportionate share of capital expenditure, talent acquisition and go-to-market investment toward this vertical over the medium term, given the scale of the addressable opportunity in AI, ML and cybersecurity relative to the more mature ERP market.

2.3 Enterprise ERP Solutions Division

The ERP Division continues to provide Microsoft Dynamics ERP implementation, consulting, customization, cloud migration and support services, and remains a well-established, cash-generative legacy business for the Company. The Division has, however, experienced a moderating revenue trajectory and margin compression during the year, reflecting intensifying competition within the Microsoft Dynamics ecosystem, pricing pressure on implementation and support contracts, and the natural maturation of several long-standing client engagements. Accordingly, while the Company continues to service and invest selectively in this Division, its relative share within the Companys overall growth strategy is being consciously moderated in favor of the higher-growth Emerging Technologies vertical described above.

Notwithstanding this trend, the Company remains committed to preserving the legacy value, client relationships and proprietary intellectual property built within the ERP Division over the years and continues to differentiate the business through domain- and vertical-specific IP rather than generic implementation services. The Company has successfully implemented ERP solutions for more than 200 customers across the following industries:

• Pharmaceuticals

• Manufacturing

• Publishing

• Finance

• Supply Chain

• Healthcare

• Engineering

• Life Sciences

The Companys ERP operations extend across the United States, Australia, Singapore, Malaysia, the Philippines, South Africa, Kenya, Nigeria, Mauritius, Belgium, the UAE, Vietnam, Sri Lanka and several other international markets. To preserve and extend the value of this legacy business, the Company continues to invest selectively in Microsoft-certified, IP-based vertical solutions, including:

• Quality Management

• Plant Maintenance

• HR & Payroll solutions localized for multiple countries

• Pharmaceutical ERP Vertical Solution

• Budget Control Extensions

• Publishing Industry Vertical Solution for Microsoft Dynamics 365 Business Central

During the year, significant progress was made toward publishing the Publishing Industry Vertical Solution on Microsoft AppSource, which is expected to create an incremental, higher-margin recurring revenue stream that partially offsets the broader margin pressure within the Division.

3. Opportunities and Threats

3.1 Opportunities

• Increasing adoption of AI-powered enterprise and clinical solutions, particularly within the Companys core healthcare vertical

• Growing global demand for cybersecurity, HIPAA compliance and regulatory-driven audit services

• Expansion of the AI/ML services pipeline, including scaling of the Antelope Valley Cancer Centre engagement model to other healthcare providers

• Rising investments in predictive analytics, intelligent automation and LLM-integrated workflows

• Continued, though more measured, expansion of Microsoft Dynamics cloud ERP implementations and commercialization of proprietary vertical solutions via Microsoft AppSource

• Growth opportunities across India, the Middle East, Africa and Southeast Asia

3.2 Threats

• Intensifying competition within the Microsoft Dynamics ecosystem, contributing to continued pricing and margin pressure in the ERP Division

• Rapid pace of technological change in AI/ML requiring sustained and continuous investment to remain competitive

• Global macroeconomic uncertainty affecting customer IT spending

• Evolving cybersecurity threat landscape and regulatory requirements

• Competition for specialized AI, ML and cybersecurity talent

4. Outlook

The Company believes significant growth opportunities exist across its business segments, with the Emerging

Technologies - AI, ML and Cybersecurity vertical expected to be the principal driver of revenue and margin expansion over the medium term, anchored in the Companys deep healthcare domain expertise. The Healthcare Division is expected to continue its steady growth trajectory, supported by AI-enabled product enhancements. The ERP Division is expected to stabilize around its core installed base of over 200 customers and its proprietary vertical IP, even as its relative contribution to overall growth moderates further. The Company expects its investments in AI, cloud technologies, industry-specific IP and healthcare innovation to support sustainable long-term growth and margin improvement at the consolidated level.

5. Risks and Concerns

• Intensifying competition within the Microsoft Dynamics ecosystem, particularly affecting ERP Division margins

• Rapid technological advancements in AI/ML requiring continuous innovation and re-skilling

• Pricing pressures impacting operating margins, most notably within the legacy ERP business

• Global macroeconomic uncertainties affecting customer IT spending

• Cybersecurity threats and evolving regulatory requirements

• Talent acquisition and retention in specialized technology domains, especially AI, ML and cybersecurity

Management continues to strengthen its intellectual property portfolio, diversify its customer base, rebalance its investment mix toward higher-growth verticals, and invest in innovation to mitigate these risks.

6. Internal Control Systems and their Adequacy

The Company maintains an adequate internal control framework commensurate with the size and complexity of its operations. The internal control environment includes well-defined financial and operational controls, segregation of duties and approval mechanisms, periodic internal audits, independent statutory audits, risk management processes, and compliance monitoring and governance reviews. These systems are reviewed and strengthened on an ongoing basis to ensure the safeguarding of assets, accuracy of financial reporting, operational efficiency, and compliance with applicable laws and regulations.

7. Discussion on Financial Performance with respect to Operational Performance

The Companys standalone financial performance for the year ended March 31,2026 reflects stable growth and continued operational resilience, with revenue growth driven principally by the Healthcare and Emerging Technologies verticals, partly offset by the moderating ERP Division:

Standalone Financial Highlights (Rs. in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Total Revenue	1,755.24	1,662.62
Total Expenses	1,425.09	1,359.70
Profit Before Exceptional Item & Tax	330.16	302.92
Profit Before Tax (PBT)	330.16	302.92
Profit for the Period	230.18	240.49
Earnings per Equity Share (Rs.)	1.99	2.08

• Revenue increased by 5.6% over the previous year

• Profit Before Tax increased by 9%, reflecting improved operating performance

• Profit After Tax declined marginally due to higher tax expenses

The consolidated financial performance demonstrated stronger growth, driven by increased business volumes across operating divisions, most notably the Healthcare and Emerging Technologies verticals:

Consolidated Financial Highlights (Rs. in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Total Revenue	3,193.54	2,562.67
Total Expenses	2,809.29	2,236.76
Profit Before Exceptional Item & Tax	384.25	325.91
Profit Before Tax (PBT)	384.25	325.91
Profit for the Period	284.28	263.48
Earnings per Equity Share (Rs.)	2.45	2.27

• Consolidated Revenue increased by 20%

• Profit Before Tax increased by 20%

• Profit After Tax increased by approximately 8%

• Earnings Per Share improved to ?2.45

8. Material Developments in Human Resources / Industrial Relations

The Companys employees remain its most valuable asset. The Company continues to invest in technical skill development, leadership development programmes, AI and cloud technology certifications, performance-based career progression, employee engagement initiatives, and diversity, equity and inclusion, with a particular emphasis on building specialized AI, ML and cybersecurity talent to support the Companys strategic pivot toward its Emerging Technologies vertical. The organizational culture continues to be guided by the core values of Integrity, Passion, Speed, Commitment, Customer Focus and Continuous Learning. Industrial relations remained cordial throughout the year.

9. Details of Significant Changes in Key Financial Ratios

In accordance with Schedule V Part B to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to explain any change of 25% or more in a key financial ratio as compared to the immediately preceding financial year. Based on the standalone and consolidated statement of profit and loss for the year, the following ratios have been computed:

Particulars	FY 2025-26	FY 2024-25	Variance
Operating (PBT) Margin - Standalone	18.81%	18.22%	+0.59 pp (3.3%)
Net Profit Margin - Standalone	13.12%	14.46%	-1.34 pp (-9.3%)
Operating (PBT) Margin - Consolidated	12.03%	12.72%	-0.68 pp (-5.4%)
Net Profit Margin - Consolidated	8.90%	10.28%	-1.38 pp (-13.4%)
Basic EPS Growth - Standalone	Rs. 1.99	Rs. 2.08	-4.3%
Basic EPS Growth - Consolidated	Rs.2.45	Rs.2.27	+7.9%

None of the above ratios recorded a change of 25% or more during FY 2025-26 as compared to FY 2024-25. The moderate decline in net profit margin at both the standalone and consolidated levels is primarily attributable to a higher effective tax charge and the upfront investment being made in scaling the Emerging Technologies - AI, ML and Cybersecurity vertical, and is expected to normalize as this vertical achieves operating scale. Ratios dependent on Balance Sheet data (such as Debtors Turnover Ratio, Inventory Turnover Ratio, Interest Coverage Ratio, Current Ratio, Debt-Equity Ratio and Trade Payables Turnover Ratio) are not presented in this Annexure as the underlying Balance Sheet particulars were not available in the source financial statements provided; these will be disclosed with reference to the audited financial statements forming part of the Annual Report.

10. Details of any Change in Return on Net Worth

Return on Net Worth ("RoNW) is computed as Profit for the Period divided by Shareholders Net Worth. As Balance Sheet / Net Worth figures were not available in the source data underlying this Annexure, RoNW has not been computed for FY 2025-26 and FY 2024-25 in this report. This will be disclosed with reference to the audited Balance Sheet forming part of the Annual Report.

11. Disclosure of Accounting Treatment

The Company has complied with all the requirements of Accounting Standards/Indian Accounting Standards applicable to the Company and during the year the Company has not changed any accounting policies.

12. Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operate, changes in government regulations, tax laws and other