Cressanda Railway Solutions Ltd Management Discussions

1. MACRO-ECONOMIC & INDUSTRY OVERVIEW

Global Economic Environment

The global economy remained resilient during the year despite continued challenges arising from geopolitical tensions, trade policy uncertainty, inflationary pressures and uneven growth across major economies. The global economic environment continued to be influenced by monetary policy normalization, changing commodity prices and evolving international trade dynamics.

According to the economic outlook referenced in the Companys Annual Report, global GDP growth was projected at 3.3% 3.3% in both 2025 and 2026, while global inflation was expected to moderate. The United States economy continued to demonstrate resilience, while growth across advanced economies remained comparatively moderate. Emerging markets were expected to maintain stable growth, with India continuing to remain among the fastest- growing major economies.

Going forward, geopolitical developments, protectionist trade policies, commodity price movements, interest- rate trends and global demand conditions may continue to influence the operating environment.

Indian Economic Environment

India continued to demonstrate strong economic resilience and remained one of the worlds fastest- growing major economies. Real GDP growth was estimated at around 6.4% 6.4% for FY 2025- 26, while the medium- term outlook remained positive, supported by domestic consumption, infrastructure development, manufacturing activity and the services sector.

Indias real GVA was projected to grow by 6.4% 6.4% in FY25, supported by agriculture, industry and services. The services sector remained an important contributor to economic activity, while ongoing infrastructure development and structural reforms continued to support Indias long- term growth prospects.

2. COMPANY OVERVIEW

Cressanda Railway Solutions Limited (CRSL or the Company) is a listed company focused on Railway Auxiliary Services. During FY 2025- 26, the Company continued its strategic transition from its legacy IT- enabled business towards a focused railway and media- oriented business model.

The Company is building an integrated platform combining railway services, transit advertising, passenger engagement, technology- enabled solutions and media opportunities.

Key Business Developments during FY 2025-26

BECIL Consortium Win: The Company partnered with Broadcast Engineering Consultants India Limited (BECIL), a Government of India Enterprise under the Ministry of Information and Broadcasting. Through this strategic consortium, the Company secured a major tender

development and structural reforms continued to support Indias long- term growth prospects.

Looking ahead, India is expected to maintain potential real GDP growth of approximately 6.5% 6.5% over FY26- FY28. Continued infrastructure development, stable inflation, supportive policies and robust urban consumption are expected to remain important growth drivers, although employment generation, global trade uncertainty and automation- related challenges remain relevant considerations.

Indian Media & Entertainment and Advertising Industry Indias Media & Entertainment industry continued its technology- led transformation during the year. The sector reached 2,502 billion in CY 2024, registering 3.3% 3.3% year- on- year growth. Advertising remained a key growth driver, while digital media emerged as the largest segment, surpassing television.

The Indian advertising industry reached approximately 908.6 billion in 2024 and is expected to continue expanding, supported by increased investment by brands, digital platforms, diversified media channels and demand for innovative advertising solutions.

Digital media generated approximately 802 billion in 2024 and accounted for around 32% 32% of Indias Media & Entertainment market. Digital advertising also recorded strong growth, reaching approximately 700 billion in CY 2024. Search, social media, e- commerce integration, performance marketing, personalization and AI- enabled advertising are increasingly shaping the sector.

These trends provide a favourable environment for technology- enabled advertising, passenger engagement and digital media solutions, which form an important part of the Companys evolving business strategy.

from the Ministry of Railways.

Railway Operations: Under the secured railway contract, the Company has operational mandates across a fleet of more than 500 Mail, Express, Premium, Intercity and Local trains. The scope includes on- board Wi- Fi, highspeed internet, Content on Demand (CoD), interior and exterior advertising rights and non- catering retail sales.

Eastern Railway Business: The Companys business model includes exclusive five- year rights, extendable by a further five years, covering transit display advertising, railway concierge services, onboard Wi- Fi, entertainment and FMCG sales across railway zones. The Company is also developing a railway- focused Super App aimed at providing integrated passenger services.

· Kolkata Metro Partnership: The Company has undertaken LED screen and Wi-Fi-related opportunities at metro stations.

· Airport Advertising: The Companys airport advertising business includes advertising opportunities through more than 5,000 trolleys at Netaji Subhas Chandra Bose International Airport, with signi icant commuter visibility.

· Strategic Acquisitions: The Company has acquired 51% stakes in Mastermind Advertising and SYN Developers, expanding its presence in OTT/media and infrastructure-related opportunities.

· Renewable Energy: The Company has also launched its wholly-owned subsidiary, Cressanda Renewable Energy Solutions Limited.

Strategic Business Reset

During FY 2025 26, management continued its conscious strategy of discontinuing non-core and loss-making business segments and concentrating resources on core Railway Auxiliary Services, technology-led solutions and corporate marketing/media opportunities.

This strategic repositioning is intended to create a focused and scalable operating platform and provide a foundation for long-term growth.

3. FINANCIAL REVIEW

The inancial information presented below covers FY 2025 26 as the year under review, with FY 2024 25 igures provided solely for comparative purposes.

Particulars	Standalone FY26	Standalone FY25	Consolidated FY26	Consolidated FY25
Revenue from Sales	686.95	2.045.55	686.95	3,246.40
Other Revenue Income	494.86	448.23	494.86	449.47
Total Revenue from Operations	1,181.81	2,493.78	1,181.81	3,695.87
Employee Benefit Expense	170.59	177.56	170.59	210.47
Depreciation & Amortization	201.61	37.37	202.24	37.92
Other Expenses	2,341.34	2,236.73	2,344.04	2,286.30
Total Expenses	2,799.90	2,465.02	2,803.24	3,656.19
Profit / (Loss) Before Tax	(1,588.00)	43.17	(1,591.33)	54.08
Net Profit / (Loss)	(1,588.00)	32.00	(1,591.33)	54.08
Basic & Diluted EPS (?)	(0.38)	0.01	(0.38)	0.01

Analysis of Financial Performance

· Revenue from Operations: Total revenue from operations stood at 1,181.81 Lakhs in FY 2025 26. The change re lects the Companys strategic realignment and discontinuation/phasing out of non-core and legacy business activities as it focuses on Railway Auxiliary Services.

· Other Income: Other revenue income increased to 494.86 Lakhs in FY 2025 26 from 448.23 Lakhs on a standalone basis in FY 2025 26.

· Employee Bene it Expenses: Employee bene it expense stood at 170.59 Lakhs on a standalone basis in FY26 compared with 177.56 Lakhs in FY25.

· Depreciation & Amortization: Depreciation and amortization increased to 201.61 Lakhs on a standalone basis and 202.24 Lakhs on a consolidated basis in FY26, compared with 37.37 Lakhs and 37.92 Lakhs respectively in FY25.

· Other Expenses: Other expenses stood at 2,341.34 Lakhs on a standalone basis and 2,344.04 Lakhs on a consolidated basis during FY26.

Pro it / Loss: The Company reported a standalone loss before tax of 1,588.00 Lakhs and a consolidated loss before tax of 1,591.33 Lakhs during FY26. Net loss stood at 1,588.00 Lakhs on a standalone basis and 1,591.33 Lakhs on a consolidated basis.

4. BALANCE SHEET ANALYSIS Summary of Balance Sheet (? in Lakhs)

Particulars	Standalone FY26	Standalone FY25	Consolidated FY26	Consolidated FY25
Property, Plant & Equipment & CWIP	2,464.99	852.03	2,465.87	853.84
Other Non-Current Assets	1,225.20	2,473.70	1,225.19	2,347.11
Total Non-Current Assets	3,690.19	3,325.73	3,691.06	3,200.95
Financial Assets (Current)	9,535.44	10,486.22	21,508.20	23,444.90
Other Current Assets	3,416.08	2,761.01	3,419.31	7,536.65
Total Current Assets	12,952.42	13,248.62	24,927.51	30,981.55
Total Assets	16,642.61	16,574.35	28,618.57	34,182.50
Equity Share Capital	4,227.35	4,227.35	4,227.35	4,227,35
Other Equity & Minority Interest	9,602.26	11,190.26	10,229.72	13,046.32
Total Equity	13,829.61	15,417.61	14,457.07	17,273.67
Total Non-Current Liabilities	0.00	9.84	0.00	242.30
Total Current Liabilities	2,813.00	1,146.92	14,161.50	16,666.53
Total Equity & Liabilities	16,642.61	16,574.35	28,618.57	34,182.50

Balance Sheet Highlights

Asset Base: Standalone total assets increased marginally to 16,642.61 Lakhs from 16,574.35 Lakhs in FY25.

Capital Deployment: The Company deployed capital towards on- board technology platforms, software applications and physical infrastructure required for implementing its railway portfolio.

Equity: Standalone total equity decreased from 15,417.61 Lakhs in FY25 to 13,829.61 Lakhs in FY26, primarily reflecting the impact of the current- year loss.

Liabilities: Standalone current liabilities increased from 1,146.92 Lakhs to 2,813.00 Lakhs during FY26, while non- current liabilities stood at nil.

5. PERFORMANCE & OPERATIONAL ANALYSIS

Topline Realignment

The reduction in revenue during FY26 represents a strategic transition rather than merely a contraction in the Companys operating focus. Management has consciously moved away from non- core and legacy segments to establish a focused platform centred on Railway Auxiliary Services.

Expansion of Railway Portfolio

The secured railway mandate covering 500- plus trains provides the Company with a significant operating platform across advertising, connectivity, content, passenger services and retail opportunities.

Technology and Infrastructure

The increase in the Companys asset deployment reflects investment in technology platforms, software applications and physical infrastructure required for implementing the railway portfolio.

Earnings Trajectory

FY26 reflects a transition and investment phase for the Company. Infrastructure build- outs, contract development and strategic repositioning impacted near- term profitability. Managements focus is to establish scalable and higher- margin revenue opportunities from the expanded railway network.

6. RISK MANAGEMENT

Effective risk management remains an integral part of the Companys business strategy. The Companys risk management framework focuses on identifying, evaluating and monitoring risks arising from both internal and external environments.

Economic Risk: Changes in economic conditions and consumer/business spending.

Market Risk: Changes in advertising demand, customer preferences and competitive conditions.

Technological Risk: Rapid changes in technology and the need to maintain reliable digital infrastructure.

Policy & Regulatory Risk: Changes in government policies, railway regulations and statutory requirements.

Operational Risk: Execution of large- scale railway contracts and integration of technology and service infrastructure.

Financial Risk: Working capital requirements, cost pressures and changes in revenue realization.

The Company continuously evaluates these risks and seeks to implement appropriate mitigation measures. The Board believes that there are no risks threatening the Companys existence, while recognising the need for proactive monitoring of normal- course business risks.

7.INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has established Internal Financial Controls appropriate to the size, scale and complexity of its operations. These controls are designed to support accurate financial and operational reporting, compliance with applicable laws and regulations, protection of assets, proper authorization of transactions and adherence to internal policies.

The Internal Audit function operates with appropriate independence and reports to the Chairman of the Audit Committee. An annual audit plan is prepared based on business risks, while the Audit Committee reviews the

effectiveness and adequacy of internal controls, accounting procedures and operating processes. Corrective measures are undertaken based on audit observations.

During FY26, management also continued strengthening financial reporting and control processes. The statutory auditors observations relating to certain confirmations, supporting documentation, an ongoing SEBI matter and accounting software edit- log requirements are being addressed through systematic tracking and enhanced internal review mechanisms.

8.HUMAN RESOURCE

Human capital remains an important component of the Companys ability to execute its expanding business operations. CRSL recognises employees as a key organisational asset and seeks to create a professional, secure and collaborative working environment.

The Company focuses on employee development, training, transparent communication, talent acquisition and retention. Training initiatives are undertaken to support

employees in developing their capabilities and contributing effectively to the Companys evolving business requirements.

As the Company continues its transition towards Railway Auxiliary Services and technology- enabled operations, developing appropriate technical, operational and managerial capabilities will remain an important priority.

9.BUSINESS OUTLOOK

The Companys outlook is closely linked to the continued development of Indias railway infrastructure, increasing passenger expectations, digitalisation and the growing importance of transit and digital advertising.

Transit and railway advertising On- board Wi- Fi and connectivity Content on Demand Passenger concierge services FMCG and non- catering retail opportunities Digital and technology- enabled media solutions Corporate marketing and advertising services

The Companys broader media and advertising initiatives, including metro and airport opportunities, provide additional avenues for diversification and growth.

Management remains focused on disciplined execution, technology deployment, operational efficiency and monetisation ofthe Companys railway and media assets.

10. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, projections, estimates and future prospects may constitute forward- looking statements within the meaning of applicable laws and regulations.

These statements are based on certain assumptions and current expectations concerning future developments and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied.

Factors that may affect actual results include changes in economic conditions, government and regulatory policies, railway- related developments, market conditions, technological changes, competition, project execution, financial conditions and other operational uncertainties.

The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.