Cadsys (India) Ltd Management Discussions

I. INDUSTRY DOMAIN STRUCTURE AND DEVELOPMENTS

The U.S. telecommunications sector saw record FTTH (Fiber-to-the-Home) growth in 2024, with more than 10
million new homes passed, bringing the total to over 88 million. Revenues in the FTTH market reached USD 10.7
billion in 2024 and are projected to nearly double by 2030, reflecting strong and sustained demand for high-
speed broadband.

Broadband competition has intensified, with fixed wireless gaining millions of new subscribers while traditional
cable operators lost market share. This dynamic is driving greater affordability for consumers and encouraging
further fiber investment. At the same time, private sector initiatives and government programs continue to
accelerate deployment, particularly in underserved areas.

In this context of strong demand and industry convergence, CADSYSs expertise in fiber design, construction
management, and project tracking positions it well to capitalize on sector growth and evolving customer needs.

Cadsys and its group companies has been providing a comprehensive range of geospatial information systems
(GIS), engineering (Tower and wireless), design-build engineering, construction management services and
software services to companies in the communications, utility, energy, and rail industries.

Further, Apex provides design, installation, and testing, as well as professional land surveying, geotechnical
services, lease exhibits, construction drawings, structural mappings, post modification inspections, structural and
mount analysis, mount certifications, and Professional Engineering stamps in 48 states.

The outlook for the telecom and broadband infrastructure sector continues to present significant opportunities
for CADSYS. The rapid acceleration of fiber-to-the-home (FTTH) deployments in the U.S. and globally is driving
sustained demand for engineering, design, and construction management services. Government-funded
broadband programs, particularly those aimed at bridging the digital divide in underserved and rural areas,
provide a robust pipeline of projects that align with the companys core strengths. Increasing reliance on high-
speed connectivity by enterprises, institutions, and households further expands the addressable market, creating
opportunities to diversify service offerings into areas such as enterprise connectivity and large-scale network
upgrades.

Beyond market growth, advances in digital technologies, including real-time project tracking and data
analytics, create avenues for CADSYS to differentiate itself by delivering efficiency, transparency, and
measurable value to clients. Strategic collaborations and alliances with partners in the telecom
ecosystem also present opportunities to to broaden reach and capabilities. By leveraging its proven
expertise, expanding service portfolio, and strengthening its presence in high-growth markets, CADSYS is
well positioned to capture these opportunities and drive long-term, sustainable growth.

While the long-term outlook for the telecom infrastructure sector remains strong, certain risks could impact
performance in the near term. Project delays, particularly those tied to permitting processes and coordination
with multiple regulatory authorities, continue to pose execution challenges and can affect revenue recognition
timelines. Competitive pricing pressures in the design and construction management space are intensifying, as
both established players and new entrants vie for market share, which could place downward pressure on
margins. In addition, the industry remains sensitive to broader socio-political and economic conditions, including
shifts in government funding priorities, regulatory changes, and supply chain disruptions. These factors,
combined with the evolving pace of technology adoption, create an environment where agility and proactive
risk management are critical to sustaining growth and profitability.

Looking ahead to FY 2025-26, CADSYS is well-positioned to capitalize on the growing demand for broadband
expansion and advanced fiber networks, particularly in the U.S. market. The companys continued investments
in digital tools, project tracking systems, and design capabilities will enable greater efficiency and transparency,
further strengthening client confidence. Strategic focus will remain on diversifying services, including enterprise
connectivity and government-funded broadband initiatives, which offer significant potential for long-term
growth. By broadening its customer base and deepening its presence in new markets, CADSYS aims to reduce
dependency on a few large projects and build resilience against market fluctuations. With a clear vision, robust
leadership, and a strong execution framework, the company is confident of sustaining growth momentum
while delivering consistent value to stakeholders.

Strong internal controls and risk management practices continue to form the backbone of CADSYSs
governance framework. During FY 2024-25, the company further enhanced its control environment by
implementing robust project monitoring systems, strengthening compliance processes, and adopting
advanced reporting mechanisms. Financial controls were reinforced to ensure accuracy, transparency, and
accountability in all transactions, while operational reviews were conducted regularly to identify and mitigate
potential risks at an early stage. The company also maintained a strong focus on regulatory compliance across
jurisdictions, with periodic audits and reviews to safeguard against lapses. In an industry marked by rapid
change and complex regulatory environments, CADSYS recognizes that proactive risk identification and
mitigation are essential. Accordingly, management remains vigilant in monitoring external developments—
whether economic, political, or technological—to ensure the companys long-term resilience and stability.

The Finance and Compliance department implements and monitors the internal control environment
and compliance with statutory requirements.

As required under the Companies Act, 2013, the Company has appointed J Madhava Rao and Co.
Chartered Accountants as the Internal Auditor of the Company who is continuing to perform Internal
Audit and maintain the internal financial controls of the Company from time to time.

We achieved sales of Rs. 19.94 crores in FY 2025, compared to Rs. 27.64 crores in FY 2024. Profit declined from
Rs. 2.24 crores to Rs. 0.54 crores. Furthermore, consolidated revenue fell from Rs. 217.42 crores to Rs. 102.45
crores, with a consolidated profit margin of (Rs. 37.02) crores in FY 2025.

This report contains forward-looking statements based on certain assumptions and expectations of future
events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or
will be realized. The Companys actual results, performance or achievements can thus differ materially from
those projected in any such forward-looking statements. The Company assumes no responsibility to publicly
amend, modify or revise any forward-looking statements, on the basis of any subsequent developments,
information or events.