CRISIL Ltd Management Discussions

Annexure to the Directors Report

Ratings services

The domestic credit rating business demonstrated resilience, growing steadily despite a muted bond market and moderate bank credit growth. Going forward, we expect the bond market to see some revival in due course as the yields soften, although global macroeconomic uncertainties will continue to pose challenges. We also expect bank credit growth to gain some traction, driven by banks enhanced ability to offer competitive interest rates, improved asset quality and stronger capitalisation levels.

The governments steady push on infrastructure spending, along with favourable domestic demand, is expected to support investments in the infrastructure and consumption-linked sectors, though a broad-based revival of capital expenditure will only be gradual.

The credit quality outlook continues to be resilient, with the credit ratio (the ratio of the number of rating upgrades to the number of rating downgrades) remaining above 1 time, supported by leaner balance sheets of Indian corporates. However, increasing geopolitical tensions and uncertainties, including higher US tariffs, continue to pose risks, especially to select export-oriented sectors.

Research, analytics and solutions

Crisil Intelligence

We further strengthened our position as a trusted partner for credit, risk and consulting solutions. We observed sustained momentum in our consulting practice, with increased demand for advisory services driven by the ongoing expansion of infrastructure investment and urban development initiatives across India and select international markets.

Our industry research solutions continued to gain traction, with particular interest in thematic and new-age sector studies. We expanded our research coverage to include emerging sectors, supporting clients need for timely, actionable insights in a rapidly evolving business environment.

Our fixed-income indices remained the preferred benchmarks for mutual funds, facilitating the launch of several new passive target maturity funds. Our AIF benchmarks, which now cover a significant portion

of the alternative investment universe, were further refined to reflect evolving market dynamics and investor requirements.

Demand for our credit risk offerings remained robust. Credit+ and ICON continued to be adopted by leading financial institutions. We advanced our AI/ML capabilities by integrating AI (including GenAI) features into our platforms, allowing analysts to generate draft credit summaries and enhancing the overall user experience. We further advanced our innovative analytics platform portfolio via the launch of a valuation platform and Indexer, alongside introduction of Crisil i360.

We continued to leverage AI (including GenAI) to efficiently produce and deliver content, enabling faster turnaround times for clients and supporting their data-driven decision-making processes.

We also maintained our strong relationships with banking clients, with nine of the top 10 Indian banks using our risk management solutions. Our continued investment in digital infrastructure and emerging technologies positions us well to meet the increasing demand for integrated, analytics-driven solutions.

Crisil Integral IQ

Our business demonstrated its resilience by securing engagement from new clients and broadening its reach into additional regions. Our focused market outreach and a broad range of solutions resulted in new mandates across strategic sectors. However, performance was moderated by persistent geopolitical uncertainty and a reduction in discretionary spending among global clients.

Our buy-side offerings continued to gain traction, securing new mandates and increasing wallet shares. However, the demand for our ESG services and sell-side research was muted owing to a slowdown in discretionary spending by clients

In credit risk and lending solutions, we strengthened partnerships and secured new clients, as banks adapted their credit risk frameworks in response to heightened macroeconomic and geopolitical uncertainties. We also made progress in developing GenAI-based credit risk assessment solutions, which received a positive response from clients.

Our quantitative and risk solutions saw traction in risk and regulatory transformation, and change management, despite limited appetite for discretionary spending from commercial and investment banks (CIBs).

Crisil Coalition Greenwich

We made investments in deepening relationships with CIB Index banks. Our client engagement and scaling of offerings strengthened demand from large commercial banks and regional banks.

The CIB space continues to evolve, with segments such as private credit market presenting new opportunities for banks.

Regional banks are investing in expanding their product and regional footprint. In response, we are continually evolving our offerings to meet the changing needs of the market and our clients.

In IM, the shifting focus towards alternatives and private markets continues to pose challenges for traditional asset managers and will drive the future growth of the asset management industry.

In MST, our thought leadership has garnered strong recognition across major financial publications, further elevating our industry profile.

The acquisition of McKinsey PriceMetrix Co. (PriceMetrix) by Crisil reinforces its leadership in providing benchmarking and analytics solutions to the financial services industry. It combines PriceMetrixs proven expertise in wealth management and its rich data assets with Crisils existing offerings to deliver enhanced insights and create significant value for clients globally.

Analysis of consolidated financial performance and results of operations

Consolidated financial statements include financial statements of Crisil Limited and its wholly owned subsidiaries (the Group). Subsidiaries are entities controlled by the Company.

Financial statements of the Group have been combined on a line-by-line basis by adding the book values of like items of assets, liabilities, income and expenses, after duly eliminating intra-group balances and transactions.

Consolidated financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the Ind AS), as notified by the Ministry of Corporate Affairs pursuant

to Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. Financial statements have been prepared under historical cost convention on an accrual basis, except for a few financial instruments, which are measured at fair value at the end of each reporting period. Management accepts responsibility for the integrity and objectivity of financial statements, as well as for various estimates and judgement used therein.

The consolidated financial performance and results of operations are relevant for understanding Crisils performance.

A. Financial performance

1. Property, plant and equipment, right-of-use assets and other intangible assets

The Groups investments in property, plant and equipment represent the cost of buildings, leasehold improvements, computers, office equipment, furniture, fixtures and vehicles. Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any.

The Groups right-of-use assets consist of office premises. These assets are measured at cost less any accumulated depreciation and impairment losses, if any, and adjusted for any remeasurement of the lease liability.

The Groups other intangible assets include software, customer relationships, technology, databases, tradenames, platforms and brands. These are valued at the cost of acquisition or construction less accumulated amortisation and impairment losses, if any. The estimated useful lives of intangible assets and the amortisation period are reviewed at the end of each financial year.

During the year, the Group capitalised T 168.58 crore to its gross block. Capitalised assets include office equipment, computers, software, furniture, fixtures, vehicles, leasehold improvements and right-of-use assets.

The Group expects to fund its investments in fixed assets and infrastructure through internal accruals and liquid assets.

At the end of the year, the Groups investments in property, plant and equipment, right-of-

use assets and other intangible assets were as follows:

(Rs. crore)

As at December 31,

Details	2025	2024
Carrying value
Gross block	1,411.22	1,081.65
Less: Accumulated depreciation	651.89	530.66
Net block	759.33	550.99

2. Goodwill on consolidation

Goodwill on consolidation represents excess of purchase consideration over the net asset value of acquired subsidiaries on the date of such acquisition. Goodwill is tested for impairment annually, or more frequently if there are indications of impairment. For goodwill impairment testing, the carrying amount of Cash-Generating Units (CGUs), including allocated goodwill, is compared with the recoverable amount of CGUs by the Group.

3. Financial assets

A. Investments and treasury: The Groups investments and treasury comprise equity investments, investments in debt mutual funds, fixed deposits, and cash and bank balances.

a. Equity investments: All equity investments (quoted and unquoted) are measured at Fair Value Through Other Comprehensive Income (FVTOCI).

b. Current investments and treasury: The

Groups investments in debt mutual funds are classified as Fair Value Through Profit or Loss (FVTPL). The Groups treasury was T 1,346.54 crore as at December 31, 2025, as against T 1,370.17 crore in the previous year.

c. The Group maintains adequate liquidity/ treasury to meet strategic and growth objectives. It has ensured a balance between earning adequate returns on its liquidity/treasury assets and mitigating financial and business risks. Cash and bank balance includes Indian and overseas bank accounts. The Groups treasury policy calls for investing surplus in fixed deposits with scheduled banks and debt mutual funds.

B. Loans

Loans represent loans extended to employees, which totalled T 7.64 crore as at December 31, 2025, as against T 6.17 crore in the previous year.

C. Trade receivables

Trade receivables (including unbilled receivables) at the gross level totalled T 698.10 crore as at December 31,2025, compared with T 566.82 crore in the previous year. Trade receivables accounted for 19% of revenue in 2025, compared with 17% in the previous year.

The Group believes the outstanding trade receivables are recoverable, and that it has adequate provision for doubtful trade receivables. The provision for doubtful trade receivables was T 10.67 crore as at December 31, 2025, as against T 17.03 crore in the previous year. The provision for doubtful trade receivables was reduced as a percentage of trade receivable from 3.00% to 1.53% for the year ended December 31,2025.

D. Other financial assets

Other financial assets comprise security deposits, accrued interest, long-term fixed deposits and the fair value of forward contracts. These totalled T 390.28 crore as at December 31, 2025, compared with T 60.46 crore in the previous year.

4. Deferred tax

Deferred tax assets and liabilities comprise deferred taxes on property, plant and equipment, right-of-use assets, leave encashment, accrued compensation to employees, gratuity, fair valuation of quoted/unquoted investments, gains/losses on forward contracts, business combinations, provisions for doubtful trade receivables, and deferred initial rating fees. The Groups deferred tax assets totalled T 108.05 crore as at December 31, 2025, as against T 80.60 crore in the previous year. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The Groups deferred tax liabilities totalled T 49.70 crore as at December 31,2025, as against T 4.19 crore in the previous year.

5. Income tax assets

Net advance income tax assets amounted to T 229.72 crore as at December 31, 2025, compared with T 248.47 crore in the previous year. Tax liabilities stood at T 3.28 crore vs T 1.65 crore.

6. Other assets

Other assets mainly comprise advances to vendors, accrued revenue, prepaid expenses and tax credit receivables. These assets amounted to T 235.25 crore as at December 31, 2025, compared with T 211.73 crore in the previous year.

7. Equity share capital

The Companys authorised capital is T 19.50 crore, comprising 195,000,000 equity shares of T 1 each. During the year, the Company issued and allotted 227 equity shares to eligible employees on exercise of options granted under the Employee Stock Option Scheme (ESOS), 2014. Consequently, the issued, subscribed and paid-up capital increased from 73,1 29,790 to 73,130,017 equity shares of T 1 each.

8. Other equity

Other equity comprises reserves and surplus and Other Comprehensive Income (OCI). It totalled T 3,026.13 crore as at December 31, 2025, as against T 2,557.51 crore in the previous year.

9. Financial liabilities

A. Trade payables

Trade payables include amounts payable to vendors for supply of goods and services. These totalled T 145.54 crore as at December 31, 2025, as against T 175.97 crore in the previous year.

B. Other financial liabilities

Other financial liabilities include dues to employees, unclaimed dividend and the fair value of forward contracts. As at December 31,2025, other financial liabilities stood at T 482.93 crore, as against T 454.26 crore in the previous year.

10. Provisions and other liabilities

Provisions represent funds set aside by the Group to cover anticipated future obligations arising from past events.

A. Provision for employee benefits

These liabilities totalled T 182.20 crore as at December 31, 2025, compared with T 158.77 crore in the previous year.

B. Other liabilities

Other non-financial liabilities mainly include unearned revenue and statutory liabilities. Unearned revenue represents fees received in advance for services that have not yet been rendered. Other liabilities were T 428.32 crore as at December 31, 2025, as against T 326.90 crore in the previous year.

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B. Results of operations

Summary of the consolidated operating performance:

(Rs. crore)

Particulars	2025	% of revenue	2024	% of revenue
Income
Revenue from operations	3,649.01	97	3,259.78	97
Other income	106.54	3	89.64	3
Total income	3,755.55	100	3,349.42	100
Expenses
Employee benefits expense	1,943.32	52	1,765.09	53
Finance costs	22.22	1	4.03	0
Depreciation and amortisation expenses	128.52	3	69.95	2
Other expenses	620.46	17	583.88	17
Total expenses	2,714.52	72	2,422.95	72
Profit before tax	1,041.03	28	926.47	28

(Rs. crore)

Segmental revenue by geography:

The above segment revenue includes intersegment revenue of ^ 2.11 crore in 2025 and 2024.

The ratings industry maintained its growth momentum in 2025, supported by stable bond issuances and moderate expansion in bank credit. The second quarter witnessed a surge in large bond issuances, primarily from frequent issuers in the financial services sector, following the RBIs rate cuts in April. However, growth in the bond market moderated in the latter half as yields rose amid increasing global uncertainties, notably the impact of higher US tariffs. As a result, overall bond market growth remained subdued for the year.

Global Analytics Centre (GAC) saw growth in surveillance support to S&P Global Ratings and expanded analytical and operational support to S&P in new areas beyond Ratings.

Crisil Intelligence saw robust growth in demand for new-age research reports, risk solutions, and offerings in the transport sector. Crisil Coalition Greenwich saw momentum in corporate and investment banking. We completed the acquisition

of McKinsey PriceMetrix Co. (PriceMetrix) solidifying our position as a leading provider of benchmarking and analytics across financial services. Crisil Integral IQ demonstrated resilience in 2025 and gaining traction on buy-side and in risk solutions. Our client engagement and diversified offerings helped in increasing wallet shares from existing clients and win new mandates in the strategic areas.

Other income (net)

Other income was 7 106.54 crore as at December 31, 2025, compared with 7 89.64 crore in the previous year. The major components of other income are profit/fair valuation of current investments, foreign exchange gain, interest income, and dividend.

Expense analysis

Expenses in the year totalled 7 2,714.52 crore as against 7 2,422.95 crore in the previous year. The increase in total expenses was mainly driven by an overall increase in personnel expenses, depreciation and other expenses.

Key ratios

Metrics	2025	2024	2023	2022	2021
Debtor turnover ratio (in times)	5.8	5.2	4.3	4.1	4.7
Current ratio (in times)	1.9	2.0	2.1	1.9	1.8
Return on net worth *	27.4%	28.8%	33.1%	33.5%	32.2%
Employee benefits expense/ total income	51.7%	52.7%	54.1%	54.1%	54.1%
Operating profit margin	26.3%	26.3%	25.3%	25.4%	22.6%
Net profit margin	20.4%	20.4%	20.4%	19.5%	19.6%
Revenue per average employee (7 lakh)	74.9	69.9	67.8	64.7	60.3
Expense per average employee (7 lakh)	52.7	50.4	48.8	47.6	44.3
Profit per average employee (7 lakh)*	22.2	19.5	19.0	17.0	16.0

*Excludes impact of exceptional items

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Analysis of Crisils standalone financial performance and results of operations A. Financial performance

1. Property, plant and equipment, right-of-use assets and other intangible assets

The Companys investments in property, plant, and equipment represent the cost of buildings, leasehold improvements, computers, software, office equipment, furniture, fixtures, and vehicles. Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any.

During the year, the Company capitalised T 64.19 crore to its gross block. Property, plant, and equipment capitalised during the year include office equipment, computers, software, leasehold improvements and right-of- use assets.

The Companys right-of-use assets comprise its office premises. These assets are measured at cost less accumulated depreciation and accumulated impairment losses, if any, and adjusted for any remeasurement of the lease liability.

The Companys other intangible assets are software, customer relationship and platform, which are stated at the cost of acquisition or construction less accumulated amortisation and impairment losses, if any. The estimated useful lives of intangible assets and the amortisation period are reviewed at the end of each fiscal.

Depreciation as a percentage of total income was 3% in the current year. The Company expects to fund its investments in fixed assets and infrastructure using internal accrual and liquid assets.

At the end of the year, the Companys investments in net property, plant and equipment, right-of- use assets and other intangible assets were T 396.24 crore as against T 419.85 crore in the previous year.

2. Financial assets

A. Investments and treasury: The Companys investments and treasury comprise equity investments, investments in debt mutual funds, fixed deposits and cash and bank balances.

a. Equity investments

ALL equity investments (quoted and unquoted, other than investment in subsidiaries) are measured at FVTOCI .

Investments in wholly owned subsidiaries are measured at cost. As at December 31, 2025, the cost of investment in subsidiaries totalled T 145.86 crore as against T 145.86 crore in the previous year.

b. Current investments and treasury

The Companys investments in debt mutual funds are classified as FVTPL . The Companys treasury totalled T 729.39 crore as at December 31, 2025, as against T 816.79 crore in the previous year.

Cash and cash equivalents constituted 11% of the treasury as at December 31,2025, as against 11% in the previous year.

The Companys treasury policy calls for investing surplus in a combination of fixed deposits with scheduled banks and debt mutual funds. The Companys Liquidity position is heaLthy.

B. Loans

Loans represent Loans given to empLoyees and Loan to subsidiary. As at December 31, 2025, the outstanding amount totalled T 209.46 crore compared with 5.30 crore in the previous year.

C. Trade receivables

Trade receivabLes at the gross LeveL totaLLed T 346.14 crore as at December 31, 2025, compared with T 295.21 crore in the previous year. Trade receivables constituted 19% of revenue compared with 18% in the previous year.

The Company believes the outstanding trade receivables are recoverable and it has adequate provision for bad debt. Provision for doubtful trade receivables balance was T 9.23 crore as at December 31,2025 as against T 9.33 crore in the previous year. Provision for doubtful trade receivables was decreased as a percentage of trade receivable from 3.17% to 2.67% for the year ended December 31,2025.

Other financial assets

Other financial assets comprise advances recoverable in cash/kind, Long-term fixed deposit, accrued interest and fair vaLue of forward contracts. Other financiaL assets as at December 31,2025 amounted to T 247.43 crore compared with T 58.59 crore in the previous year.

3. Deferred tax assets

Deferred tax assets and LiabiLity comprise deferred taxes on property, pLant and equipment,

right-of-use assets, leave encashment, accrued compensation to employees, gratuity, fair valuation of quoted/unquoted investments, gain/ losses on forward contract, provision for doubtful trade receivables, and unearned revenue. The Companys net deferred tax assets were valued at T76.90 crore as at December 31, 2025, as against T 54.71 crore in the previous year. Deferred tax assets are recognised only to the extent there is reasonable certainty sufficient future taxable income will be available against which such deferred tax assets can be realised.

4. Income tax assets

The net advance income tax asset was T 187.41 crore as at December 31, 2025, compared with T 185.67 crore in the previous year.

5. Other assets

Other assets mainly comprise contract assets, prepaid expenses and tax credit receivable.

6. Equity share capital

The Companys authorised capital is T 19.50 crore, comprising 195,000,000 equity shares of T 1 each. During the year, the Company has issued and allotted 227 equity shares to eligible employees on exercise of options granted under ESOS 2014. Consequently, the issued, subscribed and paid-up capital of the Company increased from 73,1 29,790 equity shares of T 1 each to 73,130,017equity shares of T 1 each.

7. Other equity

Other equity comprises reserves, surplus and OCI. It was T 2,019.22 crore as at December 31, 2025 as against T 1,778.44 crore in the corresponding previous period.

8. Financial liabilities

A. Trade payables

Trade payables amounted to T 1 29.98 crore as at December 31, 2025 against T 111.96 crore in the previous year. Trade payables include the amount payable to vendors for supply of goods and services.

B. Other financial liabilities

Other financial liabilities, which include unclaimed dividend, fair value of forward contracts, dues to employees and sundry deposit payable, were T 234.28 crore as at December 31,2025 as against T 254.14 crore in the previous year.

9. Provisions

Provisions comprise employee benefits. The overall liability was T 144.47 crore as at December 31,2025 as against T 131.34 crore at the end of the previous year.

10. Other liabilities

Other liabilities mainly represent payables on account of withholding tax, goods and services tax, other duties and unearned revenue. Unearned revenue represents fee received in advance or advance billing for which services have not been rendered.

B. Results of operations

Summary of the standalone operating performance (Rs. crore)

Particulars		Year ended December 31,
	2025	1 % of revenue	2024	% of revenue
Income
Revenue from operations	1,796.50	78	1,667.92	77
Other income	503.16	22	499.48	23
Total income	2,299.66	100	2,167.40	100
Expenses
Employee benefits expense	964.45	42	878.18	41
Finance costs	19.44	1	3.11	0
Depreciation and amortisation expenses	77.60	3	43.48	2
Other expenses	531.09	23	537.61	25
Total expenses	1,592.58	69	1,462.38	67
Profit before tax	707.08	31	705.02	33

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Revenue analysis Other income (net)

Other income increased to ^ 503.1 6 crore from T 499.48 crore in the previous year. The other income comprises mainly dividend received from subsidiaries.

Expense analysis

Expenses for the year ended December 31, 2025 totalled T 1,592.58 crore as against T 1,462.38 crore in the previous year.

Risk management

We have a robust risk management framework that is integral to our governance and has the comprehensive oversight of the Board of Directors. The framework is anchored in our Risk Management Policy, which establishes clear accountabilities and responsibilities for identifying, assessing, mitigating and monitoring risks.

Our Internal Risk Management Committee (IRMC), comprising senior members of our leadership team, provides direct governance and guidance for our risk management activities. A cornerstone of the methodology is periodic risk assessment, which integrates strategic, top-down insights with detailed, bottom-up inputs from each business unit, ensuring holistic evaluation across all segments of our business.

Our overarching philosophy is a balanced approach to risk management. We are committed to mitigating risks to limit them to at an acceptable level that aligns with our defined risk appetite. By leveraging the expertise of our leadership, we effectively navigate an ever-evolving risk landscape. This strategy is designed not only to safeguard our organisations reputation, brand and stakeholder interests but also to ensure business resilience and support our operational and strategic objectives for sustainable growth.

Key business risks and mitigation strategies

We operate in a complex and rapidly evolving global environment shaped by technological disruption, regulatory change, geopolitical uncertainty and shifting client expectations. Our risk management framework is designed to proactively identify, assess and mitigate risks that could impact strategy execution, operational resilience, financial performance and reputation. Given below are the key risks and their respective mitigation strategies.

1. Cybersecurity and data breach risks

Cyber threats are escalating in scale, sophistication and frequency, with the malicious use of Generative AI (GenAI) further heightening the risk. As a global organisation entrusted with large volumes of sensitive client and proprietary data, any security incident poses a risk to us that could result in significant reputational damage, regulatory sanctions, contractual liabilities and disruption to client services.

To counter this, we maintain a vigilant, multi-layered "defence-in-depth" framework to strengthen our cybersecurity posture. Our strategy integrates advanced technology, rigorous processes and a security-aware culture:

Technological defence: We have enhanced our network perimeter controls and deployed advanced technological safeguards, including 24x7 SOC monitoring services and SIEM monitoring across our entire production infrastructure and data loss prevention (DLP) and secure cloud architecture

Process and governance: Our information security practices are benchmarked against the globally recognised ISO 27001 standard and we have a robust incident management process in place. We continuously validate our defences through regular vulnerability assessments, penetration testing and incident response simulations

^ Human resilience: We reinforce the security awareness and vigilance of our people through mandatory cybersecurity awareness training and periodic phishing simulations. This ensures our collective resilience is evolving in step with emerging threats

2. Macroeconomic and geopolitical risks

Global economic uncertainty driven by inflationary pressures, interest rate volatility, geopolitical tensions and policy shifts can impact client spending patterns, project timelines and demand for discretionary analytics and consulting services. Prolonged volatility may particularly affect financial institutions, which form a significant portion of our global client base.

We actively monitor macroeconomic and geopolitical developments across key markets and incorporate scenario analysis into business

planning. We continue to diversify our revenue mix across products, client segments and geographies, reducing reliance on any single market or economic cycle.

By aligning our offerings to clients evolving priorities, such as risk management, regulatory compliance, cost optimisation and data-driven decision-making, we remain well positioned to navigate economic cycles while capitalising on emerging opportunities.

3. Potential disruption due to GenAI

The rapid evolution of GenAI is reshaping industries. Slower adoption of the technology is a strategic risk for us as it can potentially constrain our competitiveness, operational efficiency and ability to meet evolving client expectations. While harnessing GenAI is critical for future growth, we also agree that this must be balanced with managing the inherent risks of unmanaged adoption, such as data integrity and intellectual property concerns.

To mitigate this risk while capitalising on the emerging opportunity, we have adopted a proactive and structured approach to GenAI. A dedicated, cross-functional task force is responsible for evaluating high-impact use cases, ensuring strategic alignment and establishing robust guardrails for data protection, ethical standards and intellectual property.

We are actively investing in Al-enabled platforms and tools to enhance analyst productivity, improve solution scalability and deliver differentiated client outcomes. This balanced strategy of responsible innovation, combining technological integration with critical human oversight, allows us to accelerate GenAI adoption confidently. This ensures we unlock new growth opportunities and maintain our competitive edge while upholding our steadfast commitment to quality, trust and analytical integrity.

4. Competitive intensity

The analytics, research and financial services ecosystem is witnessing heightened competition from global firms, niche specialists and technology-led entrants. Pricing pressure, budget constraints of clients and rapid innovation cycles may impact growth and margins.

To remain competitive, we emphasise our differentiated value proposition, focusing on innovation, domain expertise and superior client engagement. We continue to strengthen relationships with key clients, while targeting new segments and geographies to broaden revenue base.

Strategic investments in key markets and niche segments further expand our addressable market, ensuring resilience against intensifying competition. Investments in talent and technology further enhance our ability to deliver cutting-edge solutions that address complex client needs.

5. People risk

As a knowledge-driven organisation, we are heavily reliant on our talent pool. Challenges such as higher-than-optimal attrition rates, skill mismatches and succession planning gaps could disrupt operations and client delivery.

We continue to implement a comprehensive talent strategy encompassing proactive hiring, continuous learning, leadership development and succession planning. Structured upskilling programmes, certifications and mentorship initiatives help our employees align with evolving market and technology requirements.

^ Talent acquisition and development: We continuously invest in identifying and onboarding high-calibre talent. Structured learning programmes, certifications and mentorship initiatives enable employees to upskill and meet changing market demands

^ Talent retention: We benchmark our compensation practices against industry standards and offer clear career progression pathways to foster employee satisfaction. Recognition programmes and targeted retention strategies for high-performing employees ensure workforce stability

^ Employee Welfare: We are deeply committed to enhancing workplace experience, fostering an environment in which employees feel valued, respected and empowered. Flexible work policies, health and wellness programmes and community engagement initiatives contribute to a positive organisational culture that supports employee well-being.

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6. Legal, regulatory and policy risks

Given our presence across multiple jurisdictions, we are exposed to complex and evolving regulatory frameworks in financial markets, data protection, ESG, taxation and corporate governance. Non-compliance could lead to regulatory sanctions, financial penalties or reputational harm.

We have a robust compliance management framework instituted by our dedicated legal and compliance teams. Regulatory developments are monitored on an ongoing basis, and policies, controls and processes are updated to ensure adherence to applicable laws and standards. Engagement with regulators and continuous monitoring of compliance requirements strengthen our ability to navigate the evolving legal landscape.

Regular compliance training, internal audits and proactive engagement with regulators help

us ensure timely identification and mitigation of regulatory risks and render our business conduct responsible and sustainable.

7. Foreign exchange risk

We generate significant foreign currency revenue from our global operations, which exposes us to exchange rate fluctuations. The appreciation or depreciation of the rupee against major currencies materially impacts our profitability.

To mitigate this risk, we operate a structured foreign exchange risk management programme that uses forward contracts and other hedging instruments. These measures help stabilise earnings and reduce volatility over a 12-month horizon.

Regular reviews of forex positions and alignment with revenue forecasts ensure effective management of currency risk, allowing us to maintain financial stability in an unpredictable global environment.