Dev Information Technology Ltd Management Discussions

A INDUSTRY STRUCTURE AND DEVELOPMENTS

The global Information Technology industry continues to operate at the crossroads of rapid technological advancement and a complex macroeconomic environment. Factors like precarious geopolitical situations, ever-changing regulatory and localised frameworks, increasingly limited spending, and evolving priorities of enterprises are key in influencing technology investments in this era.

Simultaneously, technology has become an essential cog in the industrial machinery to elevate performance and achieve a tangible competitive advantage. AI, Cloud Computing, Data Analytics, and Internet of Things arent merely buzzwords but strategic deployments that help industries leapfrog their growth trajectory.

Artificial Intelligence	Artificial Intelligence, in particular, is witnessing greater enterprise adoption as organisations explore its potential across automation, analytics, customer engagement, software development, operational efficiency, and decision-making. The broader shift towards AI-led processes is also encouraging enterprises to review their technology infrastructure, data architecture, and cybersecurity frameworks.
Cybersecurity	Cybersecurity has similarly become a critical strategic priority. The increasing interconnectedness of enterprise systems, cloud adoption, and digital platforms has expanded the threats a company can face, resulting in greater demand for cybersecurity services.
Data Analytics & Business Intelligence	Data Analytics and Business Intelligence continue to play an important role in enabling businesses to convert data into actionable insights. Realtime and predictive analytics, together with enterprise platforms such as Microsoft Power BI and the broader Power Platform ecosystem, are supporting greater visibility and informed decision-making across functions.
Blockchain	Blockchain technology continues to evolve, with applications across smart contracts, digital identity, enterprise blockchain solutions, tokenisation and decentralised financial applications.
Internet of Things	Internet of Things applications are also developing across areas such as smart cities, agriculture, building management and energy optimisation, creating opportunities at the convergence of connected infrastructure, analytics and automation.

Within India, continued digitalisation across government and enterprise sectors provides a resilient opportunity environment. Considering these factors, DEVIT has accordingly continued to strengthen its focus on the domestic market, including e-governance opportunities, while developing capabilities and strategic relationships to support international expansion.

The growing presence of Global Capability Centres in India also creates opportunities for technology companies capable of delivering specialised digital services, enterprise solutions and skilled technology resources to global organisations.

Opportunities

Artificial Intelligence and Automation

Artificial Intelligence represents one of the significant long-term opportunities for the technology sector. DEVIT is working towards strengthening its AI capabilities through DEV Lab initiatives, including an AI-focused Centre of Excellence and sandbox environment.

At the same time, we are also exploring proof-of-concept initiatives involving opportunities in markets such as North America and Australia. In addition to clientfacing solutions, we intend to increase internal use of AI and Business Intelligence tools to improve productivity and reduce delivery costs.

Cybersecurity

As businesses and governments expand their digital footprints, cybersecurity requirements continue to become more complex.

DEVIT sees opportunities in managed cybersecurity services, including Security Operations Centre services, network security, endpoint control, vulnerability assessment and incident management. The Companys presence in India, together with its growing overseas reach, provides an opportunity to develop cybersecurity delivery capabilities serving both domestic and international customers.

Data Analytics and Business Intelligence

The growing need for real-time information, predictive insights and data-led decisionmaking continues to evolve into a major enterprise expectation and drives demand for IT Companies.

DEVITs capabilities across analytics and Business Intelligence, together with its exposure to the Microsoft technology ecosystem through Dhyey Consulting, have established us as a reliable partner to address requirements involving data visualisation, enterprise reporting, automation, and analytical decision support.

Dhyey Consultings portfolio also includes capabilities across Microsoft Power BI and Power Platform solutions that enable organisations to analyse data, build applications and automate organisational processes.

Blockchain

Through Minddeft, DEVIT continues to evaluate opportunities across blockchain- based solutions.

Potential application areas include smart contracts, enterprise blockchain, tokenisation, digital identity and other emerging blockchain use cases. Simultaneously, we are also evaluating startup-led initiatives around wallet tokenisation and related solutions.

Microsoft Enterprise Solutions

Dhyey Consulting Services Private Limited provides DEVIT with an established capability in Microsoft Dynamics 365 and related enterprise technologies.

Dhyeys offerings include implementation and support services across Microsofts enterprise ecosystem as well as a portfolio of industry-specific applications. Its Business Central add-ons include Enterprise Asset Management, Engineering Change Management, Indent Management and Quality Control Management, among several other applications. Its HR and Payroll portfolio further extends the ecosystem into employee lifecycle and payroll management solutions.

We intend to continue developing Dhyeys market reach, particularly across North America and Europe.

Global Capability Centres

Indias expanding GCC ecosystem represents an additional opportunity for DEVIT.

As a part of this opportunity, we are looking to focus on opportunities where our technology expertise, project-delivery capabilities and skilled workforce can support global enterprises operating or establishing capability centres in India.

Domestic Digitalisation and E-Governance

Continued technology adoption by Indian government agencies and enterprises provides DEVIT with opportunities in the domestic market.

Over the past year, we have placed renewed emphasis on domestic opportunities and e- governance engagements in response to uncertainty in international markets. At the same time, we aim to exercise greater selectivity where projects involve comparatively lower margins.

International Market Expansion

At DEVIT, we continue to evaluate opportunities to strengthen our international presence through organic market development as well as strategic alliances.

Over the last year, we have strengthened our collaborations involving XDUCE, Dhyey Consulting, and Unique Comp, Inc. These associations are expected to support greater access to customers, resources, and opportunities in international markets.

Threats

While DEVIT continues to maximise its opportunities, it is essential to factor in the challenges that not just us, but the entire market faces. These include, but are not limited to:

Geopolitical and Macroeconomic Uncertainty	Continuing geopolitical volatility may affect client spending, investment cycles and technology demand across international markets.
Pricing and Margin Pressure	Competitive bidding and certain domestic engagements, including some e-governance projects, may result in pressure on project margins.
Rapid Technological Change	The accelerated development of AI and other emerging technologies requires continuous investment in skills, infrastructure and capabilities.
Cybersecurity Threats	Increasing cyber risks can affect both DEVITs internal environment and the technology environments of its clients.
Regulatory and Compliance Requirements	Evolving frameworks relating to AI, privacy, cybersecurity, data localisation and blockchain may influence solution development and service delivery across markets.
Talent Availability	Demand for specialised skills across AI, cybersecurity, cloud, data and enterprise technologies may create competition for qualified professionals.
International Business Conditions	Currency movements, regulatory differences and changes in customer spending across overseas markets may affect business performance.

STRATEGIC COLLABORATIONS AND MARKET DEVELOPMENT

During the year and subsequently, DEVIT continued to develop strategic relationships intended to improve delivery capabilities, market access and scalability.

Strategic Collaboration with XDUCE

DEVITs strategic business collaboration with XDUCE is intended to leverage the complementary strengths, resources, expertise and capabilities of both organisations.

The collaboration provides opportunities relating to project execution, resource deployment, talent sharing, employee secondment and cross-functional collaboration. It is also expected to improve the ability of both parties to support domestic and cross-border customer engagements and deploy skilled resources across geographies.

The relationship is expected to support stronger alignment between business development and project delivery capabilities.

Dhyey Consulting and Unique Comp, Inc.

On May 28, 2026, the Board of Directors reviewed and approved the proposed divestment of 25% of DEVITs equity investment in Dhyey Consulting Services Private Limited to Unique Comp, Inc. for an aggregate consideration of Rs.4.60 crore, pursuant to the proposed transaction described in the management inputs.

The proposed transaction is connected with a broader strategic business collaboration intended to develop opportunities in the United States government IT solutions market, including federal, state and local agencies.

The collaboration seeks to combine UCIs established position in the US market with DEVIT and Dhyeys technology capabilities, creating potential access to an important new customer segment.

As the Board approval occurred after the close of FY 2025-26, the development should be read as a subsequent strategic development relevant to the Companys future outlook.

D INNOVATION AND INTELLECTUAL PROPERTY

The Company continues to place increasing emphasis on the development of capabilities and intellectual property that can complement its traditional technology-services business.

The DEV Lab initiative is intended to facilitate experimentation and proof-of-concept development around Artificial Intelligence. Management is considering an AI Centre of Excellence and sandbox environment with potential collaboration involving North America and Australia.

The Company also intends to continue developing and exploring the market potential of intellectual- property-led offerings such as Talligence and ByteSigner, including opportunities for strategic investment and market development.

Minddeft provides another avenue for building capabilities and IP within blockchain and related emerging technologies.

Through Dhyey, the Group has also developed a portfolio of applications built around the Microsoft ecosystem. These include solutions serving manufacturing, asset management, quality control, engineering change management, human resources and related enterprise requirements.

The objective is to progressively increase the contribution of reusable solutions, applications and intellectual property alongside project-based technology services.

DEV LAB TALLIGENCE BYTESIGNER MINDDEFT DHYEY

E FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

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Particulars	FY 2025-26	FY 2024-25
Net Total Income · Consolidated	19,349.78	18,390.89
Net Total Income · Standalone	16,542.26	16,332.33
Profit Before Exceptional Items & Tax · Consolidated	120.05	1,807.94
Exceptional items · Consolidated	9,354.64	·
Profit Before Tax · Consolidated	9,474.67	1,807.94
Profit After Tax · Consolidated	7,559.52	1,477.97
Profit Before Tax · Standalone	9,322.37	1,873.34
Profit After Tax · Standalone	7,424.06	1,542.04

Summary of the figures stated in the narrative below. Refer to the narrative for the basis and currency of each figure.

For FY 2025-26, consolidated Net Total Income stood at 19,349.78 Lakhs, compared with 18,390.89 Lakhs in FY 2024-25, representing growth of approximately 5.2%.

On a standalone basis, Net Total Income stood at INR 16,542.26 Lakhs, compared with INR 16,332.23 Lakhs in the previous year.

The year, however, witnessed pressure on underlying operating profitability.

On a consolidated basis, profit before exceptional items and tax stood at INR 120.05 Lakhs, compared with INR 1,807.94 Lakhs in FY 2024-25.

The financial statements for FY 2025-26 include an exceptional/extraordinary item of INR 9,354.64 Lakhs at the consolidated level. Consequently, reported consolidated Profit Before Tax stood at INR 9,474.67 Lakhs, compared with INR 1,807.94 Lakhs in FY 2024-25.

Consolidated Profit After Tax stood at INR 7,559.52 Lakhs, compared with INR 1,477.97 Lakhs in the previous financial year.

At the standalone level, Profit Before Tax stood at INR 9,322.37 Lakhs, compared with INR 1,873.34 Lakhs, while Profit After Tax stood at INR 7,424.06 Lakhs, compared with INR 1,542.04 Lakhs in FY 2024-25.

Given the material impact of the exceptional item on reported profitability, the Companys operating performance should be evaluated separately from the impact of such exceptional income.

The Companys management continues to focus on improving the quality of operating performance through greater selectivity in project acquisition, reduction or termination of low-margin domestic business where appropriate, improved cash-flow management, and greater use of Artificial Intelligence and Business Intelligence internally to improve delivery efficiency.

KEY FINANCIAL RATIOS

The key financial ratios for FY 2025-26, along with their comparison with the previous financial year, are as follows:

( in Lakhs)

Key Ratio	FY 2025-26	FY 2024-25	Variance
Current Ratio	2.04	1.98	13.14%
Debt-to-Equity Ratio	0.22	0.22	0.99%
Inventory Turnover Ratio	24.27	22.27	8.96%
Receivables Turnover Ratio	2.11	2.49	-15.36%
Payables Turnover Ratio	4.06	4.61	-11.97%
Net Profit Ratio	45.83%	10.24%	347.71%
Interest Coverage Ratio	1.39	12.42	-88.82%
Operating Profit Margin Ratio	1.90%	13.53%	-85.92%
Return on Equity Ratio	81.89%	24.32%	236.71%
Return on Investment Ratio	204.86%	1.50%	13512.63%

The Current Ratio remained broadly stable during the year, improving marginally from 1.98 to 2.04. Similarly, the Debt-to-Equity Ratio remained at 0.22, reflecting limited year-on-year movement in the Company?s leverage position.

The Inventory Turnover Ratio increased by 8.96%, while the Receivables Turnover Ratio and Payables Turnover Ratio declined by 15.36% and 11.97%, respectively.

The Net Profit Ratio increased significantly from 10.24% in FY 2024-25 to 45.83% in FY 2025-26, primarily due to higher net profits recorded during the year.

The Interest Coverage Ratio declined from 12.42 to 1.39 during the year. The decrease was primarily attributable to lower operating profits during the period.

Similarly, the Operating Profit Margin Ratio declined from 13.53% to 1.90%, primarily due to lower operating profits during the year.

The Return on Equity Ratio increased substantially from 24.32% to 81.89%, primarily on account of the higher net profits recorded during FY 2025-26.

The Return on Investment Ratio increased from 1.50% to 204.86%. The increase was attributable to an investment in an associate that ceased to be classified as an associate during the year and was measured at Fair Value through Other Comprehensive Income (FVOCI), compared with a loss recorded in the previous year.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human capital remains central to DEVITs ability to respond to changing technology requirements and deliver increasingly specialised solutions.

As of FY 2025-26, the Company employed 1,083 people, compared with 926 employees in the previous year, representing an increase of approximately 17%.

The increase reflects the Companys continued investment in its organisational capabilities as it strengthens its presence across technology services, enterprise applications and emerging technology domains.

As Artificial Intelligence, cybersecurity, analytics, cloud and enterprise technologies become increasingly important to client requirements, the Company continues to recognise the need for ongoing capability development, reskilling and alignment of its workforce with evolving technologies.

DEVITs philosophy of “People First, Business Always” continues to guide its approach towards employees.

The Company remains focused on skill development, employee engagement, productivity and creating an organisational environment capable of supporting both business growth and individual development.

Employee Engagement, Team Bonding and Sustainability Initiatives

Beyond professional development, DEVIT continued to invest in initiatives that strengthen employee relationships, encourage participation, and foster a more connected workplace culture.

Gratitude Wall

During the year, the Company introduced a Gratitude Wall, encouraging employees to anonymously express appreciation towards their colleagues. The initiative provided employees with a simple but meaningful platform to recognise contributions, acknowledge support and strengthen a culture of appreciation across teams.

DEVIT Haat

The Company also organised DEVIT Haat, an employee-led festival designed to celebrate the culinary, artistic and entrepreneurial abilities of team members. Employees were encouraged to set up and manage their own stalls, providing them with an opportunity to showcase interests and capabilities beyond their professional roles. The event also incorporated awards across categories, including Top Seller, Best Food, Best Aesthetically Decorated Stall and Most Hygienic Stall, adding an element of friendly competition while encouraging creativity, collaboration and entrepreneurial thinking.

Sustainability continued to form an important part of employee engagement during the year. DEVIT observed September as Sustainability Month, with each working day of the week dedicated to a specific environmentally responsible practice.

Initiatives included switching off air-conditioning for an hour on Mondays to encourage energy conservation; Bring Your Own Mug Tuesdays, when disposable paper cups were removed; encouraging employees to use personal handkerchiefs instead of paper towels on Wednesdays; Travel Together Thursdays, promoting car-pooling and public transport; and responsible e-waste disposal on Fridays, with employees invited to hand over electronic waste to the Company for disposal through a registered e-waste vendor.

Through initiatives such as these, DEVIT seeks to create opportunities for employees to connect beyond their day-to-day responsibilities while reinforcing values of appreciation, creativity, entrepreneurship, collaboration and environmental responsibility. These activities complement the Companys broader efforts towards building an engaged workforce and a workplace culture aligned with its philosophy of “People First, Business Always.”

“People First, Business Always”

DEVITS GUIDING PHILOSOPHY

G OUTLOOK

The outlook for FY 2026-27 is centred on improving the quality, scalability and strategic relevance of DEVITs business.

01 Management intends to strengthen process alignment with XDUCE so that complementary service-delivery and project-management capabilities can translate into greater business opportunities for both organisations.

02 The Company also intends to reduce or discontinue lower-margin domestic business where appropriate, while taking measures to address cash-flow efficiency.

03 Another area of focus will be greater internal adoption of Artificial Intelligence and Business Intelligence to improve productivity and reduce delivery costs.

04 Global Capability Centres represent a further area of business development as DEVIT seeks to participate in Indias growing role as a global hub for technology, engineering and digital capabilities.

05 Cybersecurity, particularly managed SOC services, is expected to remain a priority as enterprises increase investments in security monitoring and cyber resilience.

06 DEVIT will continue to develop its emerging-technology ecosystem through DEV Lab, Minddeft and its intellectual-property initiatives, while seeking opportunities to expand the market reach and value of Talligence and ByteSigner.

07 Through Dhyey Consulting, the Company intends to further develop opportunities around Microsoft enterprise solutions and expand its presence across international markets.

08 The strategic relationship involving Dhyey and Unique Comp, Inc. also provides DEVIT with the potential to develop opportunities within the United States government technology market.

While global uncertainty and competitive pressures are expected to persist, managements approach will remain focused on improving business quality, strengthening technology capabilities, expanding international market access and building a more scalable operating model.

Place : Ahmedabad	For and on Behalf of Board of Directors
Date : 03rd September, 2026	PRANAV N. PANDYA
	Chairman & Whole-time Director
	(DIN: 00021744)