Cadsys India Ltd Management Discussions

I. INDUSTRY OVERVIEW

The U.S. telecommunications and broadband infrastructure sector continues to undergo significant transformation, driven by increasing demand for high-speed and reliable connectivity, expansion of fibre networks, 5G adoption, network modernisation and growing data consumption. Fibre-to-the-Home (FTTH) deployments continue to expand across the United States, with telecommunications operators, broadband providers and other infrastructure companies investing in fibre networks to meet the growing demand for highspeed broadband.

The expansion of broadband infrastructure is increasingly extending beyond major urban centres into suburban, rural and semi-urban markets, supported by both private-sector investments and government-backed broadband initiatives. These developments are creating sustained demand for network planning, engineering, fibre design, outside plant (OSP) services, construction management, project monitoring and technology- enabled network management solutions.

At the same time, the telecommunications industry is experiencing rapid technological evolution, including the increasing adoption of Artificial Intelligence (ai), automation, cloud technologies, data analytics and digital project management tools. These technologies are transforming the way telecom and infrastructure projects are designed, executed, monitored and maintained, creating opportunities for technology-enabled engineering and digital service providers.

In this evolving environment, Cadsys (India) Limited continues to leverage its capabilities in geospatial engineering, telecom and fibre network design, construction management, project monitoring, software development and technology-enabled services. The Companys experience in supporting telecom and infrastructure projects positions it to participate in the continuing development and modernisation of broadband and communications infrastructure.

Business Overview - Design, Engineering, Construction Management and Software Services

Cadsys provides a comprehensive range of Geographic Information Systems (GIS), telecom engineering, fibre network design, design and build support, construction management, project monitoring and software services to customers in the communications, utility, energy, infrastructure and related sectors.

The Companys service capabilities include fibre and telecom network design, outside plant engineering, data conversion and mapping, asset management, project tracking, customised reporting, network documentation and technology-enabled project management solutions.

During FY 2025-26, the Company continued to strengthen its capabilities in Fiber-to-the-Home (FTTH) and fibre network design, including end-to-end design support for broadband deployment and network upgrade projects. The Company also continued to expand its engagement with direct customers undertaking network upgrades and fibre deployments, particularly in rural and semi-urban areas of the United States.

During the year, the Companys investment in Apex Advanced Technology LLC, USA underwent a strategic realignment. Following the reduction in the Companys shareholding from 52% to 42%, the Company ceased to have majority control over Apex LLC with effect from 8 November 2025. Consequently, Apex LLC ceased to be a subsidiary of the Company and was thereafter accounted for as an associate. This development has enabled the Company to sharpen its strategic focus on its core engineering businesses and technology-enabled service offerings.

II. OPPORTUNITIES:

The outlook for the telecom, broadband and technology-enabled infrastructure sector continues to provide significant opportunities for Cadsys.

The ongoing expansion of fibre broadband and FTTH networks in the United States is expected to sustain demand for engineering, network design, project management, construction monitoring and related technology services. The continued deployment of fibre infrastructure in rural, suburban and underserved markets provides opportunities for the Company to leverage its existing capabilities and customer relationships.

Government-supported broadband infrastructure programmes and private-sector investments are also expected to create opportunities for network expansion, upgrades and modernisation. The Companys capabilities in fibre design, GIS, outside plant engineering and project monitoring provide a platform to participate in these projects.

The increasing adoption of AI, automation, cloud computing, digital platforms and data analytics represents another area of opportunity. By integrating these technologies with its engineering and geospatial expertise, the Company can develop solutions that improve project execution, productivity, data management and decision-making for its customers.

The Company also sees opportunities in enterprise connectivity, network modernisation, infrastructure asset management and technology-enabled project management. Diversification into these areas can broaden the Companys addressable market and reduce dependence on individual customers, projects or service segments.

III. THREATS:

The telecom and technology infrastructure industry remains highly competitive and subject to rapid technological and market changes. Increased competition among engineering, design and technology service providers may result in pricing pressures and could impact project margins.

Project execution may also be affected by factors such as permitting requirements, regulatory approvals, customer- driven changes, project delays, availability of skilled resources and coordination among multiple stakeholders. Such factors may affect project schedules, costs and revenue recognition.

The Companys operations are also exposed to changes in the broader economic environment, customer spending patterns, government funding priorities, regulatory requirements and geopolitical developments, particularly in the markets in which its customers operate.

The rapid pace of technological development presents both an opportunity and a challenge. Failure to continuously invest in new technologies, including AI, automation and digital platforms, could affect competitiveness. In addition, cybersecurity, data privacy and information security risks are becoming increasingly important as businesses become more dependent on digital systems and cloud-based technologies.

Foreign exchange fluctuations and other cross-border business risks may also impact the Companys financial performance. Accordingly, maintaining operational flexibility, strengthening risk management practices and continuously adapting to changing market conditions remain important priorities for the Company.

IV. OUTLOOK / STRATEGIES

Looking ahead, Cadsys remains focused on strengthening its core capabilities and pursuing sustainable growth in the telecom, broadband, engineering and technology sectors.

The Companys strategic priorities will include:

S trengthening Fibre and FTTH Capabilities - Continuing to expand capabilities in fibre network design, FTTH, outside plant engineering and network upgrade projects, particularly in the U.S. market.

Technology and AI Adoption - Increasing the use of Artificial Intelligence, automation, analytics and digital tools to improve operational efficiency, project execution, reporting and customer value.

Customer and Service Diversification - Expanding the customer base and broadening service offerings into areas such as enterprise connectivity, network modernisation, infrastructure management and technology-enabled engineering services.

Operational Excellence - Improving project monitoring, resource utilisation, quality, delivery efficiency and cost management through stronger processes and technology-enabled systems.

Digital Transformation - Developing and enhancing software and digital solutions that integrate geospatial intelligence, engineering data, project management and analytics to support customers in managing complex infrastructure projects.

Global Market Expansion - Exploring opportunities in new markets and strengthening relationships with existing customers while maintaining a balanced and sustainable approach to growth.

The Company believes that its combination of engineering expertise, GIS capabilities, technology platforms, customer relationships and growing focus on AI and digital transformation provides a strong foundation for future growth.

While the Company remains mindful of the competitive and economic challenges in the markets in which it operates, management remains committed to disciplined execution, prudent financial management and continuous improvement.

V. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Cadsys recognises that a strong internal control environment is essential for sustainable growth, effective risk management, financial discipline and regulatory compliance.

During FY 2025-26, the Company continued to maintain and strengthen its internal control systems covering financial reporting, operational activities, project monitoring, statutory compliance, information systems and risk management .

The Company continued to use appropriate monitoring and reporting mechanisms to improve visibility over project execution, operational performance and financial activities. Regular reviews and management oversight are undertaken to identify potential risks and deviations and to initiate appropriate corrective measures.

Financial controls are designed to ensure the accuracy and reliability of financial information, proper authorisation of transactions, safeguarding of assets and compliance with applicable accounting and regulatory requirements. The Company also continues to monitor statutory and regulatory compliances applicable to its operations.

Given the Companys international operations and exposure to rapidly evolving technology and telecom markets, management continues to monitor risks arising from economic conditions, regulatory developments, foreign exchange movements, technology changes, cybersecurity and operational dependencies.

The Company believes that its existing internal control systems are adequate and commensurate with the size, nature and complexity of its operations. The management remains committed to continuously reviewing and strengthening these systems to support operational efficiency, financial integrity, regulatory compliance and sustainable growth.

VI. DISCLOSURES UNDER SCHEDULE V OF THE SEBI LODR REGULATIONS

The financial ratios as required under Part B of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the relevant comparative figures and explanations for significant changes, wherever applicable, are disclosed in the Financial Statements forming part of this Annual Report.