DAPS Advertising Ltd Management Discussions

a) Economic Overview

Global Economy

The global economy demonstrated resilience during FY 2025-26 despite persistent geopolitical tensions, inflationary pressures, supply chain realignments and fluctuating commodity prices. Major economies witnessed moderate growth supported by easing inflation, improving consumer demand and gradual recovery in investment activities. Central banks across several countries continued to adopt balanced monetary policies to maintain economic stability while supporting sustainable growth.

Technological advancements, digital transformation and artificial intelligence continued to reshape industries worldwide, creating new opportunities for businesses operating in media, advertising and communication services. Increasing investments in infrastructure, urban development and digital connectivity are expected to further stimulate economic activities across emerging markets.

Indian Economy

India remained one of the fastest-growing major economies in the world during FY 2025-26, supported by strong domestic demand, robust government capital expenditure, healthy GST collections, infrastructure development and increasing private sector investments. Government initiatives such as Digital India, Smart Cities Mission, urban infrastructure expansion and enhanced public communication programmes continued to generate significant opportunities for businesses operating in the media and advertising sector.

Increasing urbanisation, rising disposable income, growing internet penetration and expanding consumption across Tier-II and Tier-III cities have contributed to higher advertising expenditure by both Government and private enterprises. The continued emphasis on infrastructure development, highways, airports, metro rail projects and commercial real estate has also created additional demand for outdoor media infrastructure and integrated branding solutions.

The Company believes that Indias long-term economic fundamentals remain strong and will continue to provide significant growth opportunities for organised media and communication companies.

b) Industry Structure and Developments

The Indian Media and Entertainment industry continues to evolve rapidly with changing consumer behaviour, technological innovation and increasing adoption of integrated marketing solutions. Advertisers are increasingly adopting multi-platform communication strategies combining outdoor media, print media, digital media, social media, experiential marketing and digital out-of-home (DOOH) platforms to maximise consumer engagement and brand visibility.

The outdoor media segment has emerged as one of the fastest-growing advertising formats due to increasing urbanisation, infrastructure expansion and higher demand for premium advertising locations. Development of highways, airports, metro rail corridors, railway stations, commercial complexes and smart cities has significantly expanded opportunities for organised outdoor media companies.

The print media industry continues to maintain its importance owing to its credibility, regional penetration and effectiveness in Government notifications, statutory advertisements, recruitment advertisements, tender publications and public awareness campaigns. Regional language publications continue to enjoy strong readership, particularly across Tier-II and Tier-III cities.

Digital Out-of-Home (DOOH) advertising has witnessed significant growth driven by LED display technology, programmatic advertising, dynamic content delivery and data-driven campaign management. The convergence of traditional outdoor media with digital technology is expected to reshape the future of the advertising industry.

Media planning and media buying services have also undergone significant transformation through the use of artificial intelligence, consumer analytics, audience measurement tools and performance-based campaign evaluation, enabling advertisers to optimise media expenditure and improve campaign effectiveness.

c) Company Overview

DAPS Advertising Limited is an integrated media and communication company engaged in providing comprehensive advertising, branding and media solutions across multiple platforms. The Company offers a diversified portfolio of services including Outdoor Media, Print Media, Media Planning, Media Buying, Branding, Creative Services, Public Relations Support, Digital Out-of-Home (DOOH), LED Display Solutions.

Over the years, the Company has established strong relationships with Public Sector Undertakings, corporate clients and various private sector organisations. The Company continues to leverage its expertise in executing large-scale communication campaigns by combining creative strategy, media planning and efficient execution.

The Companys business philosophy is centred on delivering effective communication solutions that enhance brand visibility, maximise audience engagement and generate measurable value for its clients.

The Companys revenue continued to be supported by diversified business activities including Outdoor Media, Print Media, Media Buying and Media Planning.

The Company continued to focus on improving operational efficiencies, optimising resource utilization, strengthening client relationships and enhancing service quality. Continuous emphasis was placed on expanding the outdoor media portfolio, improving campaign execution capabilities and adopting technology-driven media planning solutions.

The Company remains committed to maintaining high standards of corporate governance, regulatory compliance and customer satisfaction while pursuing sustainable long-term growth.

d) Opportunities and Threats

The Company continues to operate in an evolving advertising and media landscape, which offers significant growth opportunities while also presenting certain operational and business challenges.

During the financial year under review, the Company witnessed several favourable market developments that are expected to support its long-term growth strategy. These included increasing investments in Smart City and urban infrastructure projects, rising demand for outdoor media assets, growing deployment of LED display networks, expansion of Government e-procurement and empanelment opportunities, increasing adoption of Digital Out-of-Home (DOOH) media solutions, and higher corporate expenditure on branding, advertising and promotional activities. These developments provide the Company with opportunities to strengthen its market presence, diversify its service offerings and expand its customer base across Government and private sector clients.

Despite the positive business environment, the Company also encountered certain challenges during the year. These included intense competition from both organised and unorganised media players, pricing pressures within the advertising industry, delays in receipt of payments in certain projects, procedural delays in obtaining statutory and Government approvals, and project execution challenges arising from regulatory and operational factors.

To effectively address these challenges, the Company has adopted a number of strategic and operational initiatives. These include strengthening customer relationships through enhanced client engagement, expanding its presence in high-growth segments such as Digital Out-of-Home (DOOH) and LED media solutions, adopting disciplined pricing strategies with a focus on value-based offerings, improving project planning and execution mechanisms, strengthening credit monitoring and collection processes to enhance working capital efficiency, and actively participating in Government e-procurement platforms and empanelment programmes to broaden business opportunities. The Company has also continued to optimise operational efficiencies, enhance internal controls, and leverage technology to improve service delivery and project management.

The management remains confident that these initiatives, coupled with the Companys established market presence, experienced management team and diversified service portfolio, will enable it to effectively manage business risks, capitalise on emerging opportunities and create sustainable value for all stakeholders.

e) Segment Wise Performance

The company functions under a single business segment -advertising services -but operates across multiple media verticals. Revenue contributions for FY 2025-2026 were as follows: - Print Media: Rs. 16.33 crore (73.69% of total revenue) - Electronic Media (TV, Radio, OTT): Rs. 0.84 crore (3.83%) - Outdoor Media (including DOOH): Rs.4.98 crore (22.48%) We retained strong revenue from print media segment due to long term legacy clients. As compared to the last revenue from print media, the company experienced a growth of 0.57% from print media. However, our outdoor media also reflected a growth of 11.19% as compared to the last year. The launch of DOOH campaigns also added growth to our outdoor media performance.

f) Outlook

The outlook for the Indian advertising and media industry remains positive, supported by sustained economic growth, increasing urbanisation, expanding digital infrastructure and rising investments in branding and communication by both Government and private sector organizations.

Indias growing consumer market, rapid infrastructure development, increasing internet penetration and expanding organised retail sector are expected to drive advertising expenditure across various media platforms. Government initiatives relating to public welfare, infrastructure development, tourism, health, education and digital governance are also expected to create significant opportunities for integrated communication and media service providers.

The Outdoor Media industry is expected to witness sustained growth owing to the development of smart cities, highways, airports, metro rail projects, commercial hubs and transit infrastructure. Digital Out-of-Home (DOOH) media, LED display networks and technology-enabled outdoor advertising solutions are likely to play an increasingly important role in future advertising strategies.

The Print Media segment continues to retain its relevance, particularly for Government communication, statutory advertisements, recruitment notices, tender publications and regional advertising campaigns. Print media remains a trusted source of information with deep penetration across Tier-II and Tier-III cities, complementing digital and outdoor communication platforms.

The convergence of traditional media with digital technologies, data analytics, artificial intelligence and performance measurement tools is reshaping the advertising landscape. Clients are increasingly seeking integrated media solutions that provide measurable outcomes, improved customer engagement and higher return on advertising investments.

Considering these industry developments, the management remains optimistic about the long-term growth prospects of the Company.

g) Risks and Concern

The dynamic nature of the advertising sector exposes us to multiple risks. These include:

- Business Risks: relating to increasing competition within the media and advertising industry, pressure on pricing and margins, changes in customer preferences.

- Operational Risks: relating to availability of outdoor media locations, delay in campaign execution, vendor dependency, project implementation risk

- Financial Risks: liquidity management, working capital management, interest rate fluctuations

- Regulatory Risks: environmental and local authority approvals, compliance with taxation and corporate laws, municipal regulations relating to outdoor media

- Technology Risks: technology obsolescence, increasing adoption of digital media platforms, data protection and privacy h) Internal Control Systems and Their Adequacy

DAPS Advertising Limited recognizes that an effective internal control framework is fundamental to sustainable business growth, sound corporate governance and regulatory compliance. The Company has established adequate internal control systems commensurate with the size, scale and nature of its operations to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The Companys internal control framework encompasses clearly defined policies and procedures governing operational, financial and compliance functions. Standard operating procedures have been implemented across various business activities including media planning, media buying, campaign execution, procurement, vendor management, receivables management and financial reporting.

i) Financial performance with respect to operational performance

During the financial year under review, the Company continued to execute advertising and integrated communication assignments for both Government and private sector clients. The Company remained focused on improving operational efficiency, enhancing service quality, strengthening customer relationships, expanding its media network, and leveraging technology to ensure timely and effective campaign execution.

The Companys diversified service portfolio across Outdoor Media, Print Media, Media Planning, Media Buying, and Integrated Communication Services supported stable operations and sustained business performance. Revenue was driven by a balanced mix of Government and private sector projects, while prudent cost management, efficient working capital utilization, and disciplined financial management helped maintain operational efficiency and adequate liquidity. The Company remains committed to improving profitability through enhanced productivity, value-added services, and continued operational excellence

j) Material Development in Human Resources

The Company recognises that its employees are its key strength and remains committed to developing a skilled, motivated and performance-driven workforce. During the year, the Company focused on employee development through skill enhancement, performance-based evaluation and continuous learning initiatives.

The Company continued to promote a culture of professionalism, accountability, collaboration and customer-centricity while maintaining high standards of ethics, workplace safety and equal opportunity. Employee engagement and capability development remained key priorities, supporting improved operational efficiency and sustainable business growth. k) Significant Changes in the key financial ratios

Particulars	Financial Year Ended March 31,2025	Financial Year Ended March 31,2026	Change	Explanations for Change in case change ratio is more than 25% -
Trade
Receivables	2.16 times	2.45 times	13.52%
Turnover Ratio				-
Current Ratio	4.47 times	3.45 times	-22.90%
Debt Equity Ratio	0.01%	0.08%	934.63%	The increase in the debt -equity ratio during the year is primarily attributable to higher short-term borrowings arising from utilisation of the Companys overdraft facility for working capital requirements
Net Profit	6.22%	6.11%	-1.77%	-
Margin