Cybertech Systems & Software Ltd Management Discussions

The following discussion and analysis should be read in conjunction with the Companys _nancial statements included herein and the notes thereto. The _nancial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Indian Accounting Standards (Ind AS). The Ind AS are prescribed under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and relevant amendment rules issued thereafter. The Companys management accepts responsibility for the integrity and objectivity of these _nancial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the _nancial statements have been made on a prudent and reasonable basis, in order that the _nancial statements re_ect in a true and fair manner the form and substance of transactions, and reasonably present the Companys state of a_airs and pro_ts for the year. Investors are cautioned that this discussion contains forward looking statements that involve risks and uncertainties. When used in this discussion, words like ‘will, ‘shall, ‘anticipate, ‘believe, ‘estimate, ‘intend, ‘expect and other similar expressions as they relate to the Company, or its business are intended to identify such forward-looking statements. The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements could di_er materially from those expressed or implied in such statements. Factors that could cause or contribute to such di_erences include those described under the heading "Risk factors" in the Companys prospectus _led with the Securities and Exchange Board of India (SEBI) as well as factors discussed elsewhere in this report. Readers are cautioned not to place undue reliance on the forward-looking statements as they speak only as on their date of statement.

Information provided in this Management Discussion and Analysis (MD&A) pertains to CyberTech Systems and Software Limited (the Company) and its subsidiaries on a consolidated basis, unless otherwise stated.

1. INDUSTRY OVERVIEW

Global Economy & IT

Despite facing global headwinds—including escalating trade tensions, geopolitical uncertainty, persistent in_ation, and higher interest rates—the global economy in FY 2025 has shown resilience, though growth has slowed. According to the IMFs April 2025 World Economic Outlook, global growth is projected at 2.8% in 2025, down from the earlier 3.3% forecast and weaker than the 3.2% pace estimated a year ago. Growth in advanced economies remains subdued, with the United States expected to expand by only 1.8% and the Euro Area by 0.8%, while Chinas growth has been trimmed to 4.0% for both 2025 and 2026 amid trade and export pressures. By contrast, India has emerged as a key growth engine, with projections upgraded to 6.4%, rea_rming its position as the worlds fastest-growing major economy. Looking ahead, global growth is expected to recover slightly to 3.0% in 2026, but the IMF cautions that downside risks outweigh the upside, particularly if tari_s escalate further or _nancial vulnerabilities intensify.

Amid these challenges, there has been a clear acceleration in digital transformation, which continues to fuel robust expansion in the technology sector. The global IT industry is projected to sustain strong momentum in FY 2025, with spending expected to exceed USD 5.3 trillion, keeping the industry on track to surpass the USD 8 trillion mark within the next few years. Growth drivers include rapid adoption of cloud computing, arti_cial intelligence (AI), generative AI, and cybersecurity, which are reshaping both enterprise and consumer markets. India, bene_tting from its strong economic growth and thriving digital ecosystem, is expected to play an outsized role in this expansion. Signi_cant investments in data centers, AI innovation, and advanced software solutions continue despite global uncertainties, underscoring the sectors resilience.

State of the Technology Industry

Despite global headwinds—ranging from trade tensions and policy uncertainties to rising in_ation and higher borrowing costs—the information technology industry continues to demonstrate remarkable resilience and long-term growth potential. According to the latest market assessments in 2025, worldwide IT spending is projected to exceed USD 5.3 trillion, an increase of nearly 6–7% from the previous year, keeping the industry on track to surpass the USD 8 trillion milestone within the next few years. This re_ects the sectors critical role in driving digital transformation and productivity gains across industries.

Growth is being powered by a sustained CAGR of 7–8%, underpinned by multiple structural shifts:

Cloud computing remains the foundation of enterprise digitalization, with demand for hybrid and multi-cloud platforms accelerating.

Arti_cial Intelligence (AI) and Generative AI (GenAI) are emerging as the most disruptive growth drivers, reshaping work_ows, customer engagement, and product innovation across industries.

Cybersecurity investment continues to expand, driven by escalating risks in a highly interconnected global economy.

Internet of Things (IoT) connections are projected to reach over 25 billion by 2025, up from 15.1 billion in 2021, fueling demand for advanced IT infrastructure, analytics, and automation solutions.

The pandemic-era momentum for digital adoption has now evolved into structural demand, with enterprises continuing to invest heavily in cloud-native applications, AI, and automation to stay competitive.

According to NASSCOMs 2025 report, the Indian technology industry is on track to cross USD 270 billion in revenues in FY 2025, with exports contributing the majority share. Indias leadership in software services, engineering R&D, AI innovation, and digital transformation projects positions it as a global technology powerhouse. With consistent double-digit growth in its IT services exports, India is expected to remain a critical enabler of global digital transformation.

As businesses worldwide adapt to a slower macroeconomic environment highlighted in the IMF April 2025 Outlook, the technology industry stands out as a sector of relative strength—one that is driving productivity, enabling innovation, and providing a bu_er against broader economic uncertainty.

Geospatial Industry

The geospatial solutions market is demonstrating substantial momentum this year, with estimates placing its size between $548 billion and $615 billion in 2025, supported by high annual growth rates (12–18%). Industry forecasts anticipate that it will nearly double or more, reaching as much as $1.2 trillion by 2029, and possibly up to $2 trillion by 2035, driven by surging demand in environmental monitoring, smart cities, GNSS enhancements, and AI-powered analytics.

The Cloud GIS segment—critical for enabling real-time geospatial analytics globally—is forecast to be between $434 million and $891 million in 2025, with strong growth prospects through the early 2030s (CAGR 13–14.5%).

The core GIS market itself is considerable, with current values around $11–45 billion in 2025, depending on scope, and projected to climb to $24–80 billion by 2034–2030 at a healthy CAGR of 9–12%.

The Cloud GIS (Geographic Information System) market is witnessing robust expansion, re_ecting the accelerating convergence of cloud computing and geospatial technologies. As of 2024, the market was valued at USD 1.66 billion and is projected to reach nearly USD 1.98 billion in 2025, registering a strong

CAGR of around 19%. Longer-term projections indicate continued momentum, with the market expected to surpass USD 2.29 billion by 2032. Cloud GIS represents a transformative advancement in geospatial technology, o_ering web-based solutions that generate map data to help businesses analyze and optimize operations. Its ability to deliver rich, location-based insights in real time—accessible anytime and anywhere—reduces the complexity of data sharing, analyzing, and publishing, making it especially attractive to enterprises and government organizations. The appeal of cloud-based GIS lies in its scalability, cost-e_ectiveness, and low entry barriers, providing powerful tools for small and medium-sized businesses as well.

The adoption of Cloud GIS is further accelerated by the integration of IoT, AI-powered analytics, and real-time 3D visualization, which allow users to harness spatial data for smart city development, utilities, infrastructure management, and environmental monitoring. Cloud GIS platforms also enable widespread collaboration across end-users, researchers, and policymakers, while the reliability and speed of modern internet connectivity continue to reduce earlier adoption challenges.

Looking ahead, the Cloud GIS market presents signi_cant opportunities, particularly in enabling data-driven decision-making and digital transformation initiatives across industries. With North America maintaining the largest share and Asia-Paci_c emerging as the fastest-growing region, Cloud GIS is poised to play a crucial role in shaping how organizations leverage spatial intelligence for operational e_ciency, resilience, and innovation.

2. Business Overview and Outlook

The Company has continued to deliver steady growth and operational resilience in the face of a volatile global environment. Revenue for the _nancial year stood at INR 2,561.31 million, representing a year-on-year increase of 8.5%, supported by a healthy EBITDA margin of 20.3% and a net margin of 13.4%. These results re_ect disciplined execution, a strong customer-centric delivery approach, and prudent _nancial management.

Despite global economic uncertainty, CyberTech closed FY25 stronger. Our results highlight the dedication of our associates, the strength of our partnerships, and the con_dence of our shareholders. With robust _nancials, a growing portfolio of cloud clients, and a disciplined management approach, we are well positioned to sustain growth and deliver continued shareholder value in the years ahead.

The Management remains attentive to geopolitical and macroeconomic factors that may in_uence near-term business sentiment and investment cycles across certain industries. Despite these external headwinds, the Company is well-prepared to navigate such dynamics through its strong balance sheet, healthy cash reserves, resilient delivery models, and trusted customer relationships. The North America business continues to be a core pillar of strength, supported by a fully compliant U.S.-based operations center that ensures uninterrupted service delivery, robust business continuity, and adherence to evolving regulatory requirements.

The Companys strategic partnership with Esri has continued to grow, underscoring a shared commitment to innovation and customer success. During the year, the Company served as a Bronze Sponsor at the Esri User Conference, further reinforcing this long-standing collaboration. The Companys GIS portfolio, including its Managed ArcGIS Cloud Solution, has seen strong traction, with several new customers added during the year. Clients continue to derive signi_cant value from the Companys deep GIS domain expertise, emphasis on cloud security, and proven capabilities in managing complex, web-scale, cloud-based deployments.

While we maintain con_dence in the long-term secular trends driving our business, we approach the near-term with caution, focusing on operational e_ciency, selective investments, and maintaining our strong _nancial position to emerge stronger when market conditions stabilize.

Quality

CyberTech is certi_ed in globally recognized standards that re_ect our commitment to quality, process maturity, and data security:

ISO 9001:2015 – Quality Management System

CMMI V3.0 ML 3 – Process maturity for o_shore development

ISO 27001:2013 – Information Security Management System

These certi_cations demonstrate our dedication to delivering reliable, secure, and high-quality solutions to our clients

3. HUMAN RESOURCES

At CyberTech, we believe that our associates are central to our success. This year, several talented women advanced to key leadership positions across our organization. We also believe diverse leadership strengthens our innovation capabilities and client relationships. Our teams technical expertise and client focus di_erentiate us in the market.

As we look ahead, we recognize that the world of work is evolving rapidly. We are committed to acknowledging this change and embracing the extraordinary potential of our people to be a force for good. Employees remain at the heart of our vision—we actively seek their feedback to enhance our o_erings and create meaningful, positive experiences.

Employee Growth and Well-Being

At CyberTech, employee well-being is a priority. Our workplace policies focus on learning, development, and interventions that empower individuals to balance their professional and personal lives.

Through continuous engagement, we provide training programs that enhance skill sets and improve performance. This ensures employees can meet organizational goals, deliver timely support to clients, and build long-term professional success.

Today, CyberTech and its wholly owned subsidiaries are proud to have 469 permanent employees, with women representing 65% of their workforce.

4. OPPORTUNITIES AND THREATS Opportunities:

As we move through FY 2024–25, enterprises continue to accelerate their digital transformation journeys, adapting business strategies to remain agile and resilient in a rapidly changing environment.

The growing adoption of cloud computing and demand for secure, scalable, and cost-e_ective GIS solutions is reshaping the technology landscape. Innovations in arti_cial intelligence (AI), machine learning (ML), and geospatial analytics are creating new possibilities for automation, predictive intelligence, and real-time insights from large-scale data. Organizations worldwide are increasingly leveraging AI-integrated geospatial solutions to enhance operational e_ciency, sustainability, and decision-making.

During FY 2024–25, CyberTech reinforced its leadership position as a trusted partner in digital transformation. We delivered robust performance, building on our global expertise in SAP, Esri, and Spatialitics Cloud solutions.

Revenue growth: The company reported continued growth, strengthening its _nancial base.

Client expansion: Signi_cant traction was achieved in the U.S. market, where CyberTech deepened relationships with large enterprises and public sector clients.

Product momentum: GeoShield gained increasing adoption among law enforcement agencies, while Spatialitics Utilities continued to expand within critical infrastructure sectors.

Recognition: CyberTechs leadership was rea_rmed through its Esri ArcGIS Cloud Service Specialty designation, highlighting our cloud excellence. Additionally, our presence as a Bronze Sponsor at the Esri User Conference underscored our standing in the global GIS ecosystem.

With enterprises demanding advanced cloud-native, AI-driven, and geospatially powered platforms, CyberTech is well-positioned to capture these opportunities. Our focus on innovation, sustainability, customer success, and long-term partnerships continues to fuel our growth momentum into FY 2025–26.

Threats:

While opportunities remain strong, the technology environment also presents challenges. Global competition is intensifying, with established and emerging players investing aggressively in cloud-native and AI-driven GIS platforms. Macroeconomic uncertainties, in_ationary trends, and evolving regulatory frameworks could in_uence client spending. Cybersecurity risks are also rising, requiring continuous investment in advanced security and compliance systems.

Despite these challenges, CyberTechs resilient business model, customer-_rst approach, and strategic focus on high-growth markets position the company to mitigate risks while pursuing sustainable long-term growth.

Like many Indian IT services companies, CyberTech also encountered intense competition for talent, coupled with signi_cant wage in_ation over the past year. This has led to an increase in payroll costs, presenting a direct challenge to our bottom line. Despite these headwinds, we remain con_dent in our ability to navigate current challenges and continue delivering long-term value to our shareholders. To address these pressures, we have taken steps to increase operational e_ciency and explore additional cost-saving initiatives.

As we look ahead to the next _nancial year, CyberTech is committed to focusing on critical areas such as data privacy and technology risk management. These areas are essential to the continued success of our business. We are dedicated to maintaining a strong risk management culture and will continue to invest in the necessary resources and expertise to manage threats e_ectively. By staying vigilant and adaptive, CyberTech is well-positioned to navigate the evolving challenges of the IT industry and continue its trajectory of growth and innovation.

5. Risks

Risk management program involves risk identi_cation, assessment and risk mitigation. The Company has evolved following o_erings. 1. Spatial Analytics Platform 2. Enterprise solutions

Each line of o_erings has been given full operational freedom to improve the business but their margins are constantly monitored by the Management and Board of Directors and Executive Committee. Each has been given targets and means by way of budgets to improve their e_ciency and healthy strategic growth of the Company.

Some of the key strategic risks the company faces, their impact and corresponding risk mitigation actions undertaken by the company are discussed in the table:

Key Risks	Impact on CyberTech	Mitigation
Data privacy and Cybersecurity	In a connected world, businesses are highly vulnerable to cyberattacks, leading to loss of data and damage to reputation	The Company has a stringent cybersecurity policy that ensures there are no security breaches and data leaks. The policy also ensures timely resolution of incidents.
Macroeconomic uncertainty and geopolitical volatility	Economic uncertainties or downturns can lead to reduced IT budgets and slower decision- making among potential clients, resulting in delayed or cancelled cloud transformation projects. This can impact the companys revenue and growth prospects.	The Company is helping enterprises reduce their cost of operations through pitching cloud based solutions that deliver greater e_ciency, enhance enterprise agility, resilience and better output.
Compliance risks	Being a global company, we are exposed to the laws and regulations of di_erent countries.	The Company has an in-house compliance team that monitors global compliance requirements. The Company also has a team of experts and consultants who keep track of new regulations. They guide us whenever there are any changes in regulations helping us take the right steps on time and stay compliant.
Lack of Diversi_cation	The Companys potential for growth is driven by one market segment, namely IT services, with a focus on several technology areas.	The Company management has purposely remained focused in the near term as opposed to spreading its manpower too thin to achieve its goals. The company is also taking measures to change the perspective from the pure service provider to a mix of Product and services company.
Excessive dependence on one geographic segment	The companys revenue comes from USA, heavy dependence on this one geographic segment could lead to volatility because of the economic and political situation there.	The Companys various product initiatives are gaining momentum globally apart from USA. This can be leveraged to expand its horizon other than USA.
In_ation Risk	The inability of the future real value of investments, assets, and income to be reduced by unanticipated in_ation.	To add in_ation premium to the rates in which we sign contracts with our customers and vendors. Adjust cash _ows for in_ation to prevent changes in purchasing power.
Attrition Risk	Risk of losing talent across levels in the Organization.	The company reviews its compensation policies regularly to determine that compensation is competitive with the market conditions. The company also determines that there is a de_ned career path for all employees and the work environment provided to all employees is very competitive and is of very high standard.
Currency Risk	The changes in currency rate between Indian Rupees and US dollars have been a major cause of concern. The _uctuation of rates coupled with the shocks emerging from various parts of the world relating to the economic meltdown has increased the currency risk.	The Company has framed its hedging policy and Management and the Board of Directors monitor the currency position from time to time.

6. INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The Company has Internal Control procedures commensurate with its size and nature of the business. These business procedures ensure optimum use and protection of the resources and compliance with the policies, procedures and statutes.

The Internal Control Systems provide for well-de_ned policies, guidelines and authorizations and approval procedures. The operation and monitoring of the system of internal control is entrusted to employees who possess the necessary skills, technical knowledge, understanding of the Company, industries and markets in which it operates.

An Independent Audit Committee, on quarterly basis, reviews adequacy and e_ectiveness of internal controls and provides observations/ recommendations. The discussions are also made with Internal Auditors and the Internal Audit Report is also reviewed by the Committee.

7. FINANCIAL CONDITION

Your Company had consolidated revenues of _ 256.13 Crores and _ 34.93 Crores net pro_t in the current year. The Company expects to achieve signi_cant growth in revenue and net income in the coming years. The detailed _nancial condition is stated in the Boards Report which forms part of the Annual Report. A quick snapshot is given below:

Particulars	FY 2025	% of Revenue	FY 2024	% of Revenue	% of Growth
Revenue	256.13	100.00	235.9	100.00	8.58
Earnings before interest, tax, depreciation and amortization (EBITDA)	51.93	20.27	39.70	16.82	30.81
Pro_t Before Tax (PBT)	46.37	18.10	31.54	13.36	47.02
Pro_t after tax attributable to the shareholders of the company	34.93	13.64	22.74	9.64	53.61
Earnings per Share (_)	11.22	-	7.77	-	3.52

Key Financial Ratios - Consolidated

Key Financial Ratios	FY 2025	FY 2024
Debtors Turnover	11.20	7.22
Current Ratio	5.09	5.15
Operating Pro_t Margin	22.01%	17.91%
Net Pro_t Margin	13.64%	9.64%
Return on Net Worth	15.01%	12.02%

8. CAUTIONARY STATEMENT

Statements in this document/discussion relating to future status, events, or circumstances, including but not limited to statements describing the Companys objectives, projections, estimates and expectations maybe ‘forward looking statements within the meaning of applicable laws and regulations. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results could di_er materially from those expressed or implied. Important factors that could make a di_erence to the Companys operations include economic developments, particularly in the USA & improvements in the state of Information Technology Services markets, changes in the Government regulations in India & USA, tax laws & other incidental factors.

	For CyberTech Systems and Software Limited
	Sd/-
	Vish Tadimety
	Chairman
	DIN: 00008106
Place : Trevose, USA
Date : May 6 , 2025