Digitide Solutions Ltd Management Discussions

Management?s Discussion and Analysis of Financial Condition and Results of Operations

This report is intended to convey management?s perspective on the business outlook, financial position and the corresponding results of operations for the period ended March 31, 2026. Please read the following discussion and analysis in conjunction with the Financial Statements. This discussion may contain forward-looking statements and reflects current views with respect to future events and financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled “Risk Factors”. Unless otherwise stated or unless the context otherwise requires, the financial information of our Company used in this section has been derived from the Audited Financial Statements.

Your Company was incorporated on February 10, 2024, with its first financial year commencing from the date of incorporation and ending on March 31, 2025. Accordingly, all references to a particular Financial Year are to the considered accordingly. The Board has approved the Financial Statements for the period ended March 31, 2026 on May 18, 2026 in accordance with the SEBI Listing Regulations.

The information in this section includes extracts from publicly available information, data and statistics and has been derived from various government publications and industry sources. The data may have been re-classified by us for the purposes of presentation. The information may not be consistent with other information compiled by third parties within or outside India. Industry sources and publications generally state that the information contained therein has been obtained from sources it believes to be reliable, but their accuracy, completeness and underlying assumptions are not guaranteed, and their reliability cannot be assured. Industry and government publications are also prepared based on information as of specific dates and may no longer be current or reflect current trends. Industry and government sources and publications may also base their information on estimates, forecasts and assumptions which may prove to be incorrect.

A. Industry Structure and Developments

The global IT and Business Process Management (BPM) industry is entering a defining phase, where Artificial Intelligence (Al) is no longer a technology trend, but a foundational enterprise capability. As organizations move beyond experimentation, the focus has shifted from deploying Al tools to engineering Al systems that are scalable, reliable, governed, and capable of delivering measurable business impact.

This transition marks a critical inflection point: while Al adoption is widespread, enterprise value realization remains uneven. The differentiator is no longer access to Al, but the ability to engineer Al into core business workflows, operational systems, and decision-making frameworks at scale. This shift is redefining the role of ITBPM service providers; from technology implementers to partners in engineering enterprise-grade Al outcomes.

1. Global Economy

According to the International Monetary Fund?s World Economic Outlook (April 2026) (IMF, 2026), global economic growth in 2025 is confirmed at 3.4%, above earlier projections and reflecting the economy?s continued underlying resilience, while growth is projected to moderate to 3.1% in 2026 before recovering to 3.2% in 2027. The 2026 projection represents a downward revision of 0.2 percentage points relative to the January 2026 WEO Update, reflecting the cumulative drag of geopolitical conflict, elevated trade fragmentation, and persistent policy uncertainty on medium-term growth prospects.

The IMF?s April 2026 WEO characterises the global environment as one “in the shadow of war”; a reference to the destabilising macroeconomic effects of ongoing geopolitical conflict, expanding defence spending mandates, and the elevated uncertainty they generate for global trade, capital flows, and business investment (IMF, 2026). While the global economy demonstrated notable resilience through 2025, supported in part by front-loading of trade ahead of tariff changes and by fiscal expansion in select economies, these supportive factors are fading.

Risks to the 2026 and 2027 outlook remain firmly tilted to the downside, with geopolitical escalation, trade fragmentation, fiscal vulnerabilities, and potential abrupt repricing of technology assets among the principal concerns.

Advanced economies recorded actual growth of 1.9% in 2025, with projections of 1.8% in 2026 and 1.7% in 2027 (IMF, 2026), a level consistent with entrenched structural constraints across major advanced markets. Emerging market and developing economies recorded actual growth of 4.4% in 2025, with projections of 3.9% in 2026 and 4.2% in 2027, with performance remaining uneven across regions (IMF, 2026).

India stands out as the world?s fastest-growing major economy, with the IMF confirming actual growth of 7.6% in 2025; the highest among all major economies, and projecting sustained growth of 6.5% in both 2026 and 2027 (IMF, 2026). This exceptional performance, comfortably outpacing every other large economy, is underpinned by robust domestic demand, strong macroeconomic fundamentals, sustained public infrastructure investment, easing inflation, and a resilient and diversified services sector. Indias structural positioning, combined with its expanding digital economy and world-class technology services industry, makes it an increasingly critical node in the global economic architecture and a primary beneficiary of the ongoing reorientation of global trade and investment flows.

Overview of the world economic outlook reference forecast

	PROJECTIONS
	2025	2026	2027
World Output	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
United States	2.1	2.3	2.1
Euro Area	1.4	1.1	1.2
Germany	0.2	0.8	1.2
France	0.9	0.9	0.9
Italy	0.5	0.5	0.5
Spain	2.8	2.1	1.8
Japan	1.2	0.7	0.6
United Kingdom	1.3	0.8	1.3
Canada	1.7	1.5	1.9
Other Advanced Economies	3.0	2.6	2.2
Emerging Market and Developing Economies	4.4	3.9	4.2
Emerging Market and Developing Asia	5.5	4.9	4.8
China	5.0	4.4	4.0
India	7.6	6.5	6.5
Emerging Market and Developing Europe	2.0	2.0	2.1
Russia	1.0	1.1	1.1
Latin America and the Caribbean	2.4	2.3	2.7
Brazil	2.3	1.9	2.0
Mexico	0.6	1.6	2.2
Middle East and Central Asia	3.6	1.9	2.0
Saudi Arabia	4.5	3.1	4.5
Sub-Saharan Africa	4.5	4.3	4.4
Nigeria	4.0	4.1	4.3
South Africa	1.1	1.0	1.3
Memorandum
World Growth Based on Market Exchange Rates	2.9	2.6	2.6
European Union	1.6	1.3	1.4
ASEAN-5	4.5	4.1	4.4
Middle East and North Africa	3.2	1.1	4.8
Emerging Market and Middle-Income Economies	4.4	3.8	4.1
Low Income Developing Countries	4.8	4.8	4.9

The global IT Services and Business Process Management (BPM) industry, estimated at approximately $1.6-17 T in 2025 (Precedence Research, 2025); is undergoing a period of structural recalibration. Worldwide IT spending is projected to reach $5.61 T in 2025, a nearly 10% increase from 2024 (Gartner, 2025a). While headline spending growth remains strong, the composition has shifted materially: enterprises are moving away from broad-based digital transformation programmes toward targeted, ROI-driven investments, reflecting a more disciplined approach to technology capital allocation in an environment of persistent macroeconomic and geopolitical uncertainty.

A notable feature of the 2025 spending landscape has been what Gartner (Gartner, 2025a) terms an ‘uncertainty pause?, a strategic suspension of net-new technology initiatives beginning in the second quarter of 2025, driven not by budget cuts but by heightened geopolitical and economic volatility. Critically, this pause is concentrated in discretionary, project-based spending. Recurring expenditures, including cloud services, managed services, and Al-related infrastructure, have remained resilient, with data centre systems spending growing over 40% in 2025 as enterprises and hyperscalers invest aggressively in Al-optimised infrastructure (Gartner, 2025a). Al-optimised servers are expected to triple the spend on traditional servers by 2026 (Gartner, 2025b). Worldwide IT spending is projected to accelerate further to $6.15 T in 2026, driven by GenAI features becoming ubiquitous across enterprise software (Gartner, 2026).

Across the services layer, enterprises are increasingly prioritising cost efficiency and productivity gains, measurable business outcomes over transformational intent, resilience and regulatory compliance, and the intelligent automation of core operational processes. This has led IT and BPM providers to reposition themselves; from traditional outsourcing vendors to strategic transformation enablers, offering integrated capabilities spanning consulting, technology implementation, and managed operations.

3. Al at Scale: From Adoption to Engineered Enterprise Impact

No force is reshaping the IT-BPM industry more profoundly or more rapidly than Artificial Intelligence, and specifically Generative Al. Having moved from proof-of-concept novelty to enterprise infrastructure within the span of two years, Al is now a central axis around which the entire industry is reorganising itself.

Scale of the Opportunity

According to McKinsey & Company?s State of Al research (McKinsey, 2025a; McKinsey, 2025b), Generative Al has the potential to generate between $2.6 T and $4.4 T annually in economic value across 63 enterprise use cases; a figure that, at its upper bound, exceeds the entire GDP of the United Kingdom. When accounting for the broader integration of GenAI into existing enterprise software systems, this figure could roughly double. Approximately 75% of this value is concentrated in four functions: customer operations, marketing and sales, software engineering, and research and development (McKinsey, 2025a).

Global spending on Al-enabled technologies is growing significantly through 2025 and 2026, with GenAI features now becoming ubiquitous across enterprise software (Gartner, 2025b). Al-optimised server spending reached $202 B in 2025, more than doubling spend on traditional servers, and is expected to triple traditional server spending by 2026 (Gartner, 2025a). According to NASSCOM?s Strategic Review 2026 (NASSCOM, 2026), Al-related revenues in India?s technology sector are estimated at $10-12 B for FY26, reflecting scaled, function-specific deployments that have moved decisively beyond pilot programmes into commercial offerings.

From Experimentation to Industrialisation

The defining characteristic of enterprise Al in 2025 has been the decisive pivot from experimentation to industrialisation. McKinsey?s State of Al 2025 (McKinsey, 2025b), drawing on 1,993 organisations across 105 nations, reports that 79% of organisations are now regularly using Al in at least one business function, with 72% using GenAI specifically, up from 33% in 2024. Yet despite this broad adoption, only around one-third have begun scaling Al across the enterprise. The central challenge has therefore shifted decisively: it is no longer about adoption, but about scaling Al to generate measurable, enterprise-level business impact.

This transition is accelerating the emergence of what NASSCOM (NASSCOM, 2026) describes as an ‘intelligence-led operating model?, where Al handles repetitive and knowledge-intensive tasks, humans concentrate on exception management and strategic decision-making, and technology platforms enable scalable, repeatable delivery at fundamentally lower unit costs. In CY25, India?s technology industry shifted decisively from Al experimentation to industrialisation, with strategic mergers and acquisitions consolidating Al-native assets and providers re-engineering revenue models away from FTE- based delivery toward outcome based, risk-sharing constructs as Al-driven productivity materialises (NASSCOM, 2026).

However, as enterprises scale Al, a new challenge has emerged: engineering Al for enterprise reliability and impact. This includes integrating Al into legacy systems, ensuring data readiness, establishing governance frameworks, managing model risks, and aligning Al outputs with business KPIs. As a result, enterprise demand is shifting toward partners who can combine Al engineering, domain expertise, and operational integration; ensuring that Al delivers consistent, auditable, and measurable ^ outcomes at scale.

Productivity Impact and Value Realisation

Al-driven automation is delivering measurable productivity improvements at scale. McKinsey?s State of Al 2025 (McKinsey, 2025b), drawing on responses from 1,993 organisations across 105 nations, confirms that 79% of organisations now report regular use of Generative Al in at least one function, up from 65% in 2024, with 72% using GenAI specifically. Revenue uplift is most commonly reported in marketing and sales, strategy and corporate finance, and product development. Cost benefits are most visible in software engineering, manufacturing, and IT. However, enterprise-wide EBIT impact remains rare: only 39% of respondents report any EBIT impact attributable to Al, and only approximately 6%, McKinsey?s “high performers”, report an EBIT impact of 5% or more (McKinsey, 2025b).

Critically, however, McKinsey?s State of Al 2025 (McKinsey, 2025b) underscores that scaling Al to generate enterprisewide impact remains the defining challenge. More than 80% of respondents say their organisations are not yet seeing tangible EBIT impact from GenAI, and fewer than 10% report that they are scaling Al agents in any function. While 62% are experimenting with agentic Al systems, only 23% are scaling them, revealing that the transition from experimentation to operational deployment remains the critical bottleneck. High performers distinguish themselves by treating Al as a catalyst for transformation: redesigning workflows, setting ambitious growth targets, investing more than 20% of digital budgets in Al, and implementing humanin-the-loop governance frameworks. This gap between Al?s potential and its realised enterprise-level value is creating substantial demand for partners who bring structured value management capabilities, Al strategy, programme design, governance, outcome tracking, and workflow re-engineering, alongside engineering delivery (McKinsey, 2025b).

The Responsible Al Imperative

As Al deployment accelerates, the governance and ethics dimensions have moved from peripheral concerns to boardroom priorities. Regulatory scrutiny of Al systems, including the EU Al Act, emerging data protection frameworks, and sector-specific Al governance requirements across financial services and healthcare, is compelling enterprises to invest in explainability, bias auditing, human oversight mechanisms, and incident response protocols. For service providers, the ability to demonstrate responsible Al practices, backed by formal governance frameworks such as ISO 42001:2023, is becoming a meaningful differentiator and, increasingly, a prerequisite for enterprise engagement.

In this evolving landscape, the ability to engineer Al for enterprise impact rather than merely deploy it will define the next generation of industry leaders.

4. Transformation of BPM: From Cost Arbitrage to Intelligent Operations

The Business Process Management segment is undergoing its most fundamental structural shift in decades, transitioning from a labour-intensive, cost-arbitrage model to an intelligence-led, automation-first paradigm. For much of the industry?s history, BPM?s value proposition rested primarily on labour cost differentials, process standardisation, and economies of scale. These dynamics, while still relevant, are no longer sufficient as a competitive foundation.

Today, enterprises are leveraging Al-powered automation, advanced analytics, cognitive decision systems, and platform- based delivery to transform BPM into a strategic lever for business value creation.

The key structural trends reshaping the BPM landscape include:

Transition to BPaaS (Business Process as a Service):

Platform-based, subscription-driven delivery models that combine process expertise with Al-powered automation and outcome-linked pricing- enabling clients to consume BPM capabilities as a managed service rather than a fixed- cost, headcount-driven engagement. (NASSCOM, 2026)

Outcome-Based Pricing and Risk Sharing:

A structural shift in commercial models from effort-based to outcomelinked pricing, with contracts tied to KPIs such as productivity gains, automation rates, customer satisfaction, and operational cost reduction. As Al reduces the manual effort embedded in traditional delivery, services firms are being compelled to rethink how they price and deliver work entirely.

Al-Augmented Process Execution:

Embedding GenAI and machine learning into core processes such as customer experience management, collections, HR operations, and finance and accounting to drive higher throughput, lower error rates, and real-time decision intelligence. (McKinsey, 2025b)

Domain-Led Verticalization:

The highest growth in BPM is concentrated in domain- specific, Al-enabled service lines tailored to the distinct regulatory, operational, and data environments of sectors such as BFS, insurance, healthcare, and manufacturing. (NASSCOM, 2025)

While Al-led automation may moderate traditional headcount-driven BPM growth over the medium term, the net effect on market size is expected to be expansionary. For India?s BPM industry, which accounts for approximately $59 B in the NASSCOM FY26 estimate (NASSCOM, 2026), this shift represents a strategic opportunity to move up the value chain and compete on intelligence rather than cost alone.

The evolution of BPM into intelligent operations is fundamentally an engineering challenge at scale requiring the orchestration of Al models, workflow systems, data pipelines, and human decision frameworks. Providers that can engineer this convergence into stable, repeatable, and outcome-driven operating models are best positioned to lead the next phase of BPM transformation.

5. India?s Dominance in the Global IT-BPM Ecosystem

India remains the pre-eminent global hub for IT-BPM services. According to NASSCOM?s Strategic Review 2026 (NASSCOM, 2026), India?s technology industry is projected to reach $315 B in FY26- a 6.1% increase over FY25?s revised figure of $297 B; crossing the $300 B milestone for the first time. This growth, achieved against a backdrop of global macroeconomic uncertainty and trade fragmentation, reflects the industry?s structural resilience and its capacity to adapt.

The industry?s segmentation in FY26 reflects a maturing, diversifying portfolio: IT services at approximately $49 B, engineering, R&D, and design (ER&D) at $63 B, BPM at $59 B, software products at $23 B, and hardware at $21 B (NASSCOM, 2026). Exports, which continue to constitute the bulk of industry revenue, are estimated at approximately $246 B for FY26. Domestic revenues are growing faster at 7.9% annually, reflecting India?s accelerating enterprise digitisation and expansion of public digital infrastructure (NASSCOM, 2026).

India?s Evolving Competitive Advantage

India?s edge in global IT-BPM is no longer defined primarily by cost efficiency, though that remains a material factor. The competitive narrative is shifting toward a higher-value proposition anchored in:

Al Engineering Depth:

A deep and rapidly expanding pool of Al, machine learning, data science, and cloud engineering talent, including a new cohort of GenAI-native developers, positions India as a global centre of Al capability. India?s Al market is projected to reach $17 B by 2027, growing at a CAGR of 25-35%. (IBEF, 2026)

GCC Ecosystem Leadership:

India is home to over 1,750 Global Capability Centres (GCCs). These have evolved from shared service centres into strategic innovation hubs, responsible for Al development, product engineering, advanced analytics, and global R&D. GCCs are expected to contribute over 1.2M of the 4.7M new technology jobs projected in India by 2027, driven by GenAI adoption and engineering R&D expansion. (NASSCOM, 2025; IBEF, 2026)

Platform and Product Engineering:

The industry is shifting from services to IP-led growth, with providers developing proprietary platforms, accelerators, and software products that generate recurring revenue and create scalable competitive differentiation. (NASSCOM, 2026)

Data Centre Infrastructure:

India?s data centre capacity is projected to double by 2027 and increase five-fold by 2030, supported by hyperscaler investment, the government?s India Al Mission, and a dedicated allocation of ?20,000 M in the Union Budget FY26. (IBEF, 2026)

From Scale to Value: The FY26 Inflection

The transformation of the IT-BPM industry is creating a clear set of imperatives:

• Al must move from isolated use cases to enterprise-wide, engineered systems

• Value realization requires integration across technology, data, and operations

• Governance, security, and compliance are becoming core design principles of Al systems

• Commercial models are shifting toward outcome-based and value-linked structures

• Service providers must evolve from delivery vendors to partners in engineering enterprise impact

In this context, enterprises are increasingly seeking partners who can translate Al potential into operational and financial outcomes, with clear accountability for value delivery.

6. Industry Outlook

The IT-BPM industry stands at the beginning of a multi-year structural transformation whose trajectory is being determined by the convergence of four forces: the industrialisation of Al at enterprise scale, the platformization of service delivery, the shift to outcome-based commercial models, and the expansion of GCC-led strategic partnerships.

The near-term growth environment reflects these crosscurrents. Worldwide IT spending is projected to reach $6.15 T in 2026, growing at approximately 11% (Gartner, 2026), with acceleration driven by GenAI features embedding across enterprise software, continued hyperscaler investment in Al infrastructure, and broad-based enterprise adoption of managed Al services. IT services spending is projected at $1.73 T in 2025, with continued growth thereafter (Gartner, 2025a). The enterprise Al services addressable market including Al implementation, integration, and managed operations is expected to represent a $300 B+ opportunity over the next decade (McKinsey, 2025b)

India?s domestic IT-BPM market is expected to grow at 7-9% annually, supported by enterprise digitisation, GCC expansion, and public infrastructure investment (NASSCOM, 2026; IBEF, 2026). Notwithstanding this structural growth, the sector faces a set of near-term headwinds that are reshaping investor and client expectations. Concerns around automation-led pricing pressure, slower deal cycles, and uncertainty over Al monetisation models are prompting a broader reassessment of growth visibility across the industry; pressuring firms to demonstrate not just Al investment, but Al outcomes. Talent availability remains a parallel constraint: Al-ready skills are in limited supply, and providers are responding by expanding delivery footprints into Tier 2 and Tier 3 cities to access talent pools at appropriate cost and scale (Chahal, 2026). FY27 is expected to mark the maturation of enterprise Al spending, balancing near-term speed-to-market Al initiatives with longer- cycle enterprise reengineering programmes (NASSCOM, 2026). Providers that have established credibility in Al engineering, built governance infrastructure, and demonstrated measurable client outcomes will be best positioned to capture the value of this next phase.

For the IT-BPM industry overall, the long-term trajectory is one of continued expansion, driven by the irreversibility of digital transformation, the structural demand for intelligent operations, and the unceasing pressure on enterprises to operate with greater efficiency, agility, and intelligence (McKinsey, 2025a; Gartner, 2026). The industry is not merely a beneficiary of the Al era, it is one of its primary architects.

References

IMF, 2026 International Monetary Fund (2026) World Economic Outlook, April 2026: Global Economy in the Shadow of War. Washington, DC: IMF. Available at: https://www.imf.org/en/publications/weo/issues/2026/04/ world-economic-outlook-april-2026 (Accessed: 27 April 2026).

McKinsey, 2025a McKinsey & Company (2025a) The State of Al in 2025: Agents, Innovation, and Transformation. McKinsey Global Institute, November 2025. Available at: https://www.mckinsey.com/capabilities/quantumblack/our- insiqhts/the-state-of-i (Accessed: 27 April 2026).

McKinsey, 2025b McKinsey & Company (2025b) The State of Al: How Organizations Are Rewiring to Capture Value. McKinsey Global Institute, March 2025. Available at: https://www.mckinsey.com/capabilities/quantumblack/our- insiqhts/the-state-of-ai-how-orqanizations-are-rewirinq-to- capture-value (Accessed: 27 April 2026).

McKinsey, 2025c McKinsey & Company (2025c) Superagency in the Workplace: Empowering People to Unlock Al?s Full Potential at Work. McKinsey Global Institute, January 2025. Available at:

https://www.mckinsey.com/capabilities/tech-and-ai/our- insiqhts/superaqency-in-the-workplace-empowerinq-people- to-unlock-ais-fullpotential-at-work (Accessed: 27 April 2026).

Gartner, 2025a Gartner (2025a) Gartner Forecasts Worldwide IT Spending to Grow 7.9% in 2025. Press Release, 15 July 2025. Available at:

https://www.qartner.com/en/newsroom/ pressreleases/2025-07-15-qartner-forecastsworldwide-it- spendinq-to-qrow-7-point-9-percent-in-2025 (Accessed: 27

April 2026).

Gartner, 2025b Gartner (2025b) Gartner Forecasts Worldwide IT Spending to Grow 9.8% in 2026, Exceeding $6 T For the First Time. Press Release, 22 October 2025. Available at:

https://www.qartner.com/en/newsroom/press-releases/2025-10-22-qartner-forecasts-worldwide-it-spendinq-to-qrow-9-point-8- percent-in-2026-exceedinq-6-trillion-dollars-for-the-first-time (Accessed: 27 April 2026).

Gartner, 2026 Gartner (2026) Gartner Forecasts Worldwide IT Spending to Grow 10.8% in 2026, Totaling $6.15 T. Press Release, 3 February 2026. Available at:

https://www.qartner.com/en/newsroom/pressreleases/2026-02-03-qartner-forecasts-worldwide-it-spendinq-to-qrow-10-point-8- percent-in-2026-totalinq-6-point-15-trillion-dollars (Accessed: 27 April 2026).

NASSCOM, 2025 NASSCOM (2025) Technology Sector in India: Strategic Review 2025. New Delhi: NASSCOM. Available at: https://nasscom.in/knowledqe-center/publications/technoloqv-sector-india-strateqic-review-2025 (Accessed: 27 April 2026).

NASSCOM, 2026 NASSCOM (2026) Technology Sector in India: Strategic Review 2026 — Steering Through the Tides of Uncertainty. New Delhi: NASSCOM, February 2026. Available at:

https://communitv.nasscom.in/communities/nasscom-insiqhts/technoloqy-sector-india-strateqic-review-2026 (Accessed: 27 April 2026).

IBEF, 2026 India Brand Equity Foundation (2026) Indian IT and BPM Industry Analysis. Available at:

https://www.ibef.org/industrv/information-technoloqv-indi (Accessed: 27 April 2026).

Precedence Research, 2025 Precedence Research (2025) IT Services Market Size, Share, and Trends 2025. Available at:

https://www.precedenceresearch.com/it-services-market (Accessed: 27 April 2026).

Chahal, 2026 Chahal, G. (2026) ‘Digitide bets on execution as Al pressure builds on IT services?, Fortune India [Interview], Available at:

https://fortuneindia.com (Accessed: 27 April 2026).

B. Company Overview and Outlook

Your Company is an artificial intelligence (“Al”) first engineering-led digital transformation partner focused on translating artificial intelligence into scalable, reliable, and measurable enterprise impact; delivering integrated IT, Digital, and Business Process Management (BPM) solutions to enterprises across domestic and international markets. With a presence in India, North America, Canada, the Philippines, and UAE, Digitide enables organizations to simplify complexity, scale operations, and unlock measurable business value through technology-led transformation.

Following the successful demerger from Quess Corp Limited and subsequent listing as an independent entity, Digitide has entered a defining new chapter, one characterized by sharper strategic focus, accelerated innovation cycles, and the mandate to build a future-ready enterprise powered by artificial intelligence, data, and platform-led ingenuity. This structural transition marks a significant inflection point, enabling the Company to pursue differentiated growth with agility and conviction.

Digitide?s approach is anchored in the belief that Al must be engineered, not experimented with. This means embedding Al into enterprise systems with rigor—ensuring scalability, governance, integration, and measurable outcomes. Through its platforms, delivery models, and domain expertise, the Company is focused on engineering Al-led transformation across both technology and business operations.

Our service portfolio consists of two interconnected pillars:

Tech & Digital Services:

Delivering cloud-native modernization, enterprise platform engineering, application development, and managed infrastructure services at scale. Harnessing the power of machine learning, generative Al, and advanced analytics to drive intelligent decision-making and business insight across enterprise functions.

Business Process Management (BPM) Services:

Providing Al-augmented process solutions across BFSI, healthcare, collections, HR, payroll, finance and accounting, and customer experience.

These capabilities are delivered through a unified, Al-first approach, backed by proprietary platforms, deep domain expertise, and a robust global delivery network comprising 40+ delivery and business centres across five countries.

Today, Digitide serves more than 300 global clients across industries including BFS, Insurance, Healthcare, Fast Growth Tech (FGT), Manufacturing, Automotive, Retail, Telecommunications, and the Public Sector; supported by 53,500 professionals worldwide.

Flagship Platforms and Proprietary Capabilitiess

Digitide?s differentiated strength lies in its portfolio of Al- native, domain-aligned platforms that automate complex processes, generate predictive intelligence, and deliver measurable outcomes across client enterprises:

Insurance Data Hub & Insurance.ai:

Enabling underwriting insights, claims analytics, and data- driven decisioning for insurers, serving a market that exceeds $100 B globally.

Pulse.nerve (MCP Agentic Framework):

A breakthrough orchestration framework providing standardized system connectivity, centralized permission and audit logging, autonomous multi-step task execution, and Al governance, addressing the integration sprawl and Al security challenges faced by modern CIOs. Supported by 100+ ready-to-deploy Al agents targeting high-impact functions in BFSI, Healthcare, and Retail, Pulse.Nerve delivers 40%+ productivity gains, 100% audit visibility, and 3.4x faster deployment in production environments.

SmartHR & Smart Payroll:

Workforce and payroll automation platforms supporting analytics, compliance, and experience transformation,

serving a global HR technology market projected to exceed $75 B by 2030. SmartPay, the Company?s agentic Al-infused payroll and reimbursement engine, has delivered 60% improvement in processing efficiency in live deployments.

Collection.ai & DigiCollect 2.0:

An agentic collections platform with propensity modelling, risk scoring, predictive outreach, and field maximization, driving measurable recovery improvements for financial institutions. Live deployments demonstrate 90% accuracy in collections propensity prediction (within ?1.8 days), a 30% improvement in operational efficiency, and 5% more resolutions, validating the platform?s ability to generate quantifiable recovery outcomes at scale.

Loan.ai & Sales.ai:

Al-powered platforms enabling credit analytics, lead intelligence, revenue forecasting, and Al-assisted selling across lending and enterprise sales workflows.

Together, these platforms form an integrated ecosystem that enables Digitide to engineer Al-led transformation across both technology and business operations, aligning with enterprise requirements for scale, reliability, and measurable impact.

Proven Scale and Impact

Digitide?s scale of operations reflects the depth and resilience of its delivery model, and the trust placed in us by some of the world?s leading enterprises:

This scale is further reflected in the measurable outcomes generated across Digitide?s Al-powered platforms in live operation. Across customer experience, the Company?s Voice BOTs handle 2.2 million interactions with an 80% containment rate, while Chat BOTs manage 3 million interactions at an 85% containment rate, demonstrating the depth of Al-led CX automation already embedded in client operations. Q-Buddy, the Company?s Al assistant operating across 15,000+ agents, has delivered a 15-point NPS uplift and a 10% improvement in Average Handle Time (AHT). The Al-based Virtual Sales Office has generated 0.75 million leads, demonstrating the capability to replace high-cost, manual sales channels with Al-led outbound engagement at scale. In HR and talent, Nikki, Digitide?s Al-powered employee pulse and feedback platform, actively serves 30,000+ Digitiders with 95% prediction accuracy, having avoided 250+ monthly resignations through proactive intervention. Neil, the Company?s Al-led recruitment platform, has completed 16,000+ hires across 6 months with 90,000+ screenings executed autonomously, with human- in-the-loop validation maintained at every critical hiring decision. Underpinning Digitide?s Al transformation internally, DigiWAlive, the Company?s Al learning and reskilling programme, has reskilled 6,800+ Digitiders with two structured certification pathways — Lighthouse and Anchorship — delivered through the Digitide Al Learning Academy and partner ecosystem, building the Al-ready workforce required to sustain the Company?s Al-first operating model.

Corporate Provenance

Digitide?s origins trace to 2014, when Quess Corp Limited; India?s leading business services and staffing provider, expanded into tech and digital services through the acquisition of an IT professional services firm. Over the subsequent decade, the business scaled through strategic milestones: entering the P&C insurance market in 2016; building a leadership position in customer experience management through the acquisition of a majority stake in one of India?s largest CX players between 2017 and 2021; acquiring a stake in one of Indias leading listed payroll services providers in 2019; and adding a digital consulting and product engineering capability in 2024.

These businesses, having achieved considerable scale and strategic momentum, were demerged from Quess Corp Limited and consolidated under Digitide as an independent company focused exclusively on Tech, Digital, and BPM services; enabling a sharper mandate, greater governance clarity, and renewed capacity for value creation.

Financial Performance

For the period under review, your Company delivered a resilient financial performance:

Total Revenue EBITDA Adjusted PAT

Performance by Business Segment BPM Segment:

Revenue of T21698 M, representing 70% of total revenue, with an EBITDA margin of 16%, reflecting the scale and efficiency of our process-led delivery model.

Tech & Digital Segment:

Revenue of ?9104 M representing 30% of total revenue, with an EBITDA margin of 10.2%, underpinned by growing demand for Al engineering, platform, and managed services.

Performance by Geography

International markets contributed 37.3% of total revenue, while domestic operations accounted for 62.7%. Our global delivery presence, spanning delivery centres in India, Canada, Philippines, USA, and UAE, provides localized expertise at global scale, enabling seamless service delivery across time zones and regulatory environments.

Performance by Industry Vertical

BFSI remained the largest contributor at 52% of revenue (including 10% from Insurance), reflecting the depth of our domain capability and long-standing client relationships in this sector. Manufacturing contributed 15%, Healthcare 5%, and Fast Growth Tech 7%, with the remaining balance distributed across Retail, Telecom, and the Public Sector. This deliberate diversification across verticals reduces concentration risk and positions the Company for resilient, multi-cycle growth.

Performance by Client Segment

Client concentration remained healthy, with the top 10 clients contributing 35.8% of total revenue, with the balance well- distributed across a broad and growing client base. This diversification ensures sustainable growth momentum even amidst market volatility, while our investments in Al, platform solutions, and outcome-based engagement models are expected to deepen client partnerships and yield long-term value.

Strategic Direction: Al-Led, Platform-Driven Transformation

Digitide is executing a structural shift toward high-value, Al-led, and platform-driven services; moving decisively beyond traditional delivery models toward scalable, outcome-based engagements that generate recurring revenue, deepen client relationships, and expand margins.

This transformation is anchored across three strategic vectors:

1. Digitide?s Al Execution Framework Across Engineering, Services and Operations

Digitide enables enterprises to create value across engineering, services, and operations by embedding artificial intelligence across the enterprise lifecycle. The Company?s Al execution framework is structured across three layers— Pulse.ARISE, Pulse.ACT, and Pulse.AWARE—each designed to drive measurable improvements in productivity, cost efficiency, and operational resilience.

This integrated approach ensures that Al is not deployed in silos, but is engineered into core systems, workflows, and operations to deliver scalable and sustained enterprise impact.

a. Pulse.ARISE:

Digitide embeds Al directly into every stage of the software development lifecycle, leveraging generative Al, predictive analytics, and automation to synthesize requirements, guide architecture, accelerate build and testing, and continuously improve through production feedback. This results in faster deployment cycles, reduced manual testing effort, and improved developer productivity — with Al-assisted code generation driving 25-30% productivity improvements — enabling enterprises to modernize applications with greater speed, quality, and scalability.

b. Pulse.ACT:

Digitide embeds Al across service lines including digital engineering, cloud, infrastructure, cybersecurity, and enterprise applications to create reusable global templates, business capabilities, and intelligent workflows. By integrating Al into service delivery, Pulse.ACT drives cost efficiency, faster incident detection and resolution, and accelerated feature releases, ensuring that technology services are aligned to measurable business outcomes.

c. Pulse.AWARE:

Digitide applies Al to monitor, predict, and self-heal enterprise environments in real time, leveraging observability, anomaly detection, and automated remediation. This enables a shift from reactive to autonomous operations, improving system uptime, reducing mean time to resolution (MTTR), and increasing the proportion of incidents that are automatically resolved.

Together, Pulse.ARISE, Pulse.ACT, and Pulse.AWARE form a unified framework that enables Digitide to engineer Al across engineering, services, and operations, delivering faster execution, lower costs, and resilient enterprise performance at scale.

2. Agentic Al and Next-Generation Engineering Services

The emergence of Agentic Al and Generative Al as enterprise- grade capabilities represents the most significant transformation opportunity in the history of the IT-BPM industry. Digitide is at the forefront of this shift:

a. Agentic Al & GenAI Engineering:

Building enterprise co-pilots, autonomous Al agents, and intelligent automation platforms for BFSI, healthcare, and enterprise operations. The GenAI market is expected to exceed $227 B by 2030.

b. Al Orchestration via Pulse.nerve:

Our proprietary MCP (Model Context Protocol) agentic framework enables enterprise-wide Al integration through standardized connectivity, centralized governance, dynamic tool orchestration, and autonomous multi-step execution — directly addressing the integration sprawl, governance gaps, and slow time-to-value that represent the top technology challenges for modern CIOs.

c. Enterprise Platform Engineering:

Internal developer platforms, cloud-native modernization, and platform engineering for BFSI and SaaS environments, with platform engineering adoption expected across 80% of enterprises by 2027.

d. MSI, HPC, and Sovereign Cloud Services:

Multi-vendor orchestration across hyperscalers, OEMs, and Al platforms, including high-performance computing implementation and operations. The global HPC market is projected to reach $55 B by 2028.

e. Responsible Al and Ethical Al Governance:

Digitide embeds responsible Al principles across all deployments, ensuring bias-aware and explainable decisionmaking, human-in-the-loop oversight for critical use cases, robust security and adversarial resilience, and alignment with evolving regulatory frameworks—enabling Al systems that are transparent, accountable, and trusted at enterprise scale.

3. Outcome-Oriented and Annuity Engagement Models

Digitide is deliberately transitioning from effort-based to outcome-linked commercial models, creating more predictable revenue streams and tighter alignment with client value realization:

a. Managed Services Transformation:

Integrated Data + Digital + Cloud + Al managed services programs with multi-year retainers, delivering sustained client impact at scale. The enterprise Al services market is expected to exceed $300 B by 2030.

b. Al Innovation-as-a-Service:

Al labs, model engineering, and enterprise Al transformation programs delivered through subscription models, enabling enterprises to move from experimentation to scaled, production-grade Al adoption.

c .Outcome-Based Pricing:

Contracts linked to productivity gains, automation rates, and operational KPIs rather than headcount; repositioning Digitide as a business outcomes partner rather than a delivery vendor.

d. Value Management Office (VMO):

A dedicated governance layer embedding value realization from program design rather than tracking it retrospectively. The VMO delivers KPI-linked OKRs for Al programs, gain-share aligned pricing constructs, monthly KPI dashboards translating operational metrics to financial impact, and board-level Al ROI reporting; ensuring that Al investments generate measurable, accountable, and sustained business value. This approach enables Digitide to move beyond Al experimentation toward engineered, enterprise-scale transformation outcomes.

4. Platform Monetization and Al Deal Models

Digitide?s proprietary platform portfolio is increasingly the foundation of high-value, scalable commercial engagements:

a. Insurance.ai Platform:

The Insurance Data Hub and analytics suite enabling underwriting insights, claims intelligence, and data-driven decisioning, serving an insurance analytics and data platform market exceeding $100 B globally.

b. Collection.ai and DigiCollect 2.0:

An agentic collections platform combining propensity modelling, agentic workflow orchestration, field maximization, and multi-dimensional performance management. Early implementations have demonstrated measurable impact: 80% channel and contactability prediction accuracy, an estimated 11% uptick in collections recovery in initial deployments, and projected quarterly savings of ?1 M per quarter through digital and voice automation.

c. SWIFTclose (Sales.ai):

SWIFTclose is Digitide?s Al-powered sales orchestration platform designed to address inefficiencies in the digital lead lifecycle. It integrates Al-driven lead qualification, intelligent routing, conversational engagement, and real-time pipeline visibility to enable faster and more effective conversion of sales opportunities. The platform leverages customer propensity models, agentic workflows, and conversational Al to ensure that every lead is qualified, routed, and acted upon in near real time, reducing lead decay and improving partner productivity. Early deployments demonstrate 20% uptake in leads and 2x conversion improvement, with conversion rates rising from 6-7% to 15%+, CRM data completeness lifting from approximately 35% to 95%, and estimated annual headcount savings of ?150-250 M. The platform is being commercialised as a SaaS product with outcome-based pricing and an active pilot programme across 20 enterprise accounts.

d. Payroll.ai, HR.ai, and Loan.ai:

Workforce, lending, and finance platforms enabling Al- powered automation, predictive analytics, and intelligent decisioning; serving markets collectively valued at over $75 B.

Our Growth Strategy: The 3X Framework

Digitide is executing a structured and comprehensive “3X Strategy” designed to drive sustainable growth across three interconnected dimensions:

Opportunities and Challenges

Opportunities

Your Company is well-positioned to capitalize on a compelling constellation of growth opportunities arising from the structural transformation of the global enterprise technology landscape:

a. Enterprise Al and Agentic Automation:

The accelerating adoption of Agentic Al, Generative Al, and intelligent automation across BFSI, healthcare, manufacturing, and technology verticals is creating substantial demand for end-to-end Al engineering, deployment, and governance capabilities, areas where Digitide holds differentiated proprietary assets.

b. Platform-Led Managed Services:

As enterprises seek integrated, outcome-driven technology partnerships over fragmented point solutions, Digitide?s platform-first and managed services model is increasingly resonant. The addressable Al services market for IT firms is expected to nearly double by 2028.

c. Cloud and Infrastructure Modernization:

Continued enterprise migration to cloud-native architectures, HPC, and sovereign cloud environments is driving demand for Digitide?s multi-vendor orchestration and infrastructure management capabilities.

d. BPM Market Growth:

The Indian BPM market is projected to grow at 5-6% annually, while North America, a key market for Digitide, is expected to grow at 7-8%, driven by higher-value outsourcing and enterprise Al investments.

e. SMB Platform Adoption:

The growing digitalization of small and medium-sized businesses presents a compelling opportunity for the Company?s platform-led, bundled “as-a-service” offerings, expanding the addressable client base significantly.

f. Strategic Fortune 500 Partnerships:

As global enterprises seek trusted transformation partners with demonstrated Al depth and domain expertise, Digitide is well-positioned to deepen existing and forge new strategic client relationships.

Challenges and Risks

Despite a favourable demand environment, the Company navigates a range of headwinds and risks that require proactive management:

a. Intensifying Competition:

Digitide faces competition from large multinational IT-BPM firms, agile digital-native disruptors, and hyperscaler ecosystems; all intensifying pressure on market share and pricing.

b. Al-Led Disruption of Traditional Models:

While Al fuels growth, it also accelerates the disruption of traditional service delivery models, necessitating continuous reskilling and workforce evolution.

c. Regulatory Complexity:

Global data protection regulations; including GDPR and India?s Digital Personal Data Protection Act, alongside emerging Al governance frameworks introduce increasing compliance burdens in cross-border engagements.

d. Talent Constraints:

Shortages in high-demand areas such as Al engineering, cloud architecture, and cybersecurity continue to drive hiring costs and attrition, particularly in North America.

e. Macroeconomic Uncertainty:

Inflationary pressures, recession concerns, trade policy changes, and evolving visa and immigration regulations may delay client decision cycles or constrain outsourcing budgets.

f. Cybersecurity Risk:

The heightened frequency and sophistication of cyberattacks necessitate continuous investments in security infrastructure, compliance, and operational resilience.

Strategic Response and Risk Mitigation

Digitide addresses these challenges through a proactive and multi-layered strategic response:

Al-Led Differentiation:

Continued investment in proprietary platforms, the Pulse.ai ecosystem, and responsible Al frameworks to entrench competitive advantage and reduce commoditization risk.

Future-Ready Talent Architecture:

Systematic upskilling in Al, cloud, and data disciplines; Al- enabled productivity tools to augment workforce capacity; and a globally distributed delivery model to manage talent cost and supply risk.

Robust Al Governance:

Embedding ethical Al principles- bias-free design, explainability, human-in-the-loop oversight, adversarial threat resilience, and audit logging, across all Al deployments, aligned with emerging global standards.

Portfolio Diversification:

Maintaining deliberate diversity across geographies, industry verticals, client segments, and service lines to mitigate concentration and cyclicality risk.

Cybersecurity Investment:

Strengthening capabilities with advanced threat detection, Al risk validation, redteam adversarial testing, role-based access control, and Pll (Personally Identifiable Information) detection; ensuring secure, compliant Al operations.

Outcome-Based Commercial Innovation:

Expanding gain-share, subscription, and outcome-linked pricing models to align commercial risk with client value realization and sustain long-term partnership depth.

Leveraging Industry Tailwinds

Digitide operates in industries undergoing rapid structural transformation; a convergence of forces that creates exceptional tailwinds for our business:

BFSI:

Accelerating adoption of Al-driven automation, real-time fraud detection, digital banking platforms, and regulatory compliance solutions is driving demand for intelligent, scalable operations. The sector is evolving toward Al-led decisioning, with cloud-based banking operations enhancing scalability and stronger cybersecurity imperatives shaping procurement.

Healthcare:

Growth in Al-powered patient engagement, telehealth, and automation of claims and administrative processes is enabling more efficient and personalized care delivery. Al?s role in revenue cycle management, clinical documentation, and population health management is expanding rapidly.

Manufacturing & Automotive:

Industry 4.0 adoption, Al-driven supply chain intelligence, predictive maintenance, and ESG compliance mandates are transforming operational models, creating sustained demand for digital transformation partnerships with deep domain expertise.

Fast Growth Tech (E-commerce & Fintech):

Hyper-personalization, Al-driven customer engagement, and digital financial services are fuelling demand for scalable, Al- enabled platforms and operations, with the sector representing one of the fastest-growing outsourcing segments globally.

The North American Tech & Digital Services market remains resilient, with cloud infrastructure services continuing to attract enterprise investment. The application managed services market is projected to grow substantially as organizations integrate Al and machine learning into core workflows. Generative Al is expected to reshape IT services, particularly in knowledge management and contact centre augmentation, with the addressable Al services market for IT firms forecast to nearly double by 2028.

The Indian BPM market is expected to grow at 5-6% annually over the next five years, with the North American market projected at a faster clip of 7-8%; driven by higher-value outsourcing mandates and enterprise Al investment cycles. The convergence of cloud, Al, automation, cybersecurity, and data intelligence is fundamentally reshaping business strategies across geographies, creating durable and expanding demand for the solutions Digitide provides.

Outlook

The IT-BPM industry is entering a new phase where the success of Al adoption will be determined not by experimentation, but by enterprise-scale engineering and execution. Organizations are increasingly demanding that Al investments translate into measurable business outcomes—cost efficiency, revenue growth, operational resilience, and customer experience improvements.

In this environment, Digitide?s focus on engineering Al for enterprise impact positions it strongly to partner with clients in their next phase of transformation. Our investments in Agentic Al, the Pulse.ai platform ecosystem, the Value Management Office, and responsible Al governance frameworks are creating an enterprise that is structurally positioned to lead. With DigiCollect 2.0 demonstrating live recovery improvements, DigiSaiL targeting a step-change in lead conversion economics, Pulse.nerve redefining enterprise Al orchestration, and our Al Innovation-as-a-Service model enabling clients to transition from pilots to production-scale Al adoption, the Company?s strategic investments are beginning to translate into client-validated outcomes.

Our growth is anchored in a resilient and diversified portfolio; across services, geographies, verticals, and commercial models. Our client relationships, many spanning over a decade, reflect the trust we have earned through consistent delivery excellence. And our talent, 53,500 professionals across 40 Global delivery centres, continues to be our most enduring competitive advantage.

As the convergence of Al, cloud, data, and automation reshapes the global enterprise, Digitide is not merely aligned with this transformation. We are positioned to lead it; delivering sustained, measurable, and responsible value to our clients, our stakeholders, and the communities we serve.

C. Financial Performance of the Company

The following sets forth information with respect to the key components of our audited Financial Statements of our Company for the year ended March 31, 2026.

Our Income

Particulars (in Rs. M)	For the year ended March 31,2026
Revenue from operations	30,801.8
Other income	163.6
Total	30,965.4

Other income comprises of (i) interest income and (ii) other gains and losses.

Revenue from Operations comprises of BPM and Tech and Digital business segment.

Our Expenses

Particulars (in Rs. M)	For the year ended March 31,2026
Employee benefits expense	22,711.9
Other expenses	4,658.3
Total	27,370.2

Other expenses comprise of information technology services, consultancy or professional fees, postage, telephone, printing, stationery and miscellaneous expenses. This excludes depreciation, finance Cost, taxes and exceptional items, if any.

Our Tax Expenses

Particulars (in Rs. M)	For the year ended March 31,2026
Current tax	381.8
Deferred tax	(121.5)
Total	260.3

Current tax is the amount of tax payable based on the taxable profit for the period as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961. Deferred tax is recognized based on the difference between taxable profit and book profit due to the effect of timing differences. Our deferred tax is measured based on the applicable tax rates and tax laws that have been enacted or substantively enacted by the relevant balance sheet date.

Profit before Tax

Our Company earned a profit before tax of 7315.7 M for the period ended March 31, 2026.

	Consolidated	Standalone
Particulars (in Rs. M)	For the year ended March 31, 2026	For the year ended March 31, 2026
Revenue	30,801.8	19,339.2
Less: Cost of Materials and Stores and Spare Parts Consumed	-	-
Less: Employee Expenses	22,711.9	14,677.7
Less: Other Expenses	4,658.3	2,734.7
EBITDA	3,431.7	1,926.8
EBITDA Margin	11.1%	10.0%
Add: Other Income	163.6	742.4
Less: Finance Costs	510.3	387.9
Less: Depreciation & Amortization Expense	2,121.7	1,388.1
Less: Exceptional Item	647.6	569.4
Profit Before Tax	315.7	323.7
Profit Before Tax Margin	1.0%	1.7%
Less: Tax Expense	260.3	111.8
Profit After Tax	55.5	212.0
Profit After Tax Margin	0.2%	1.1%
Add: Other Comprehensive Income/ (Losses)	160.9	40.4
Total Comprehensive income for the year	216.3	252.3
Diluted EPS (in 7)	(1.1)	1.4

Key Highlights:

Revenue from operations

The company?s consolidated revenue registered sales of 730,801.8 M.

EBITDA

The company?s consolidated EBIDTA for the period is 73,431.7 M.

Other Expenses

On a consolidated basis, Other expenses majorly comprise of sub-contractor charges 71,333.2 M, repairs and maintenance 71,321.2 M, communication expenses 7434.9 M, consultancy and professional fees 7378.4 M, travelling and conveyance 7323.9 M, power and fuel 7234.2 M. Remaining other expenses relate to printing and stationery, rate and taxes, communication expenses, miscellaneous expenses etc. This excludes depreciation, finance Cost, taxes and exceptional items, if any.

Finance Cost

On a consolidated basis, finance cost for the period is 7510.3 M of which 7384.2 M belongs to lease liabilities, 7106.6 M belongs to borrowings and related costs, 719.4 M against defined benefit plans.

Depreciation and Amortization

Consolidated depreciation & amortization expenses for the period is 72,121.7 M out which 71,408.2 M pertains to Right to Use assets, 7533.5 M pertains to property, plant and equipment and 7180.0 M pertains to intangible assets.

Exceptional Items

During the year ended March 31, 2026, the company incurred certain demerger expenses for professional services and stamp duty aggregating to 7235.4 M, which have been included under “Exceptional items”. The company has considered restructured compensation of its employees with effect from April 01, 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft rules and FAQs. Considering the materiality and regulatory driven, non-recurring nature of this impact, the company has presented incremental impact of 7412.2 M related to Employee Benefit Obligations under “Exceptional item” in the consolidated financial results for year ended March 31, 2026. The company continues to monitor developments on the rules to be notified by regulatory authorities, including clarifications/ additional guidance from authorities and will continue to assess the accounting implications basis such developments/ guidance.

Income Taxes

Tax expenses during the period is 7260.3 M.

Balance Sheet Analysis

Particulars	FY 2026
Leverage Metrics
Debt/Equity	0.6x
Working Capital Metrics
Receivable DSO	78 days (75 days Q-4)
Return Metrics
RoCE (post-tax) (#)	0.4%
RoE (post tax)	0.7%

Goodwill of ?2,236.3 M comprise of T660.1 M from acquisition of Conneqt Business Solutions Limited, ?635.5 M from MFXchange Holdings Inc., ?564.1 M from Alldigi Technologies Limited and T376.7 M from Brainhunter Systems Limited Canada.

Investments: Investments of ?15.3 M pertains to subscription of equity shares of KMG Infotech by MFXchange Holdings Inc.

Receivable DSO: Receivable (Billed and Unbilled) DSO stood at 78 days for Full Year (75 days for Q-4).

Cash and Cash Equivalents: The cash and cash equivalent balance including bank balances and current investments stood at ?2,569.0 M as on March 31, 2026.

Borrowings: Long term debt consisting of vehicle loan stood at ?414.7 M and short-term debt stood at ?329.7 M as on March 31st 2026.

Non-Controlling Interest of ?780.3 M on account of non-controlling interest of 26.6% in Alldigi Tech Limited.

Cash Flow from Operations: Cash flow from operations stood at ?2,625.1 M on a consolidated basis and ?1,437.9 M on a standalone basis as on March 31, 2026.

Financial Ratios

Ratios	FY 2025-26
DSO days	78 days (74 days Q-4)
Interest Coverage Ratio	5.8x
Current Ratio	1.5x
Debt Equity Ratio(#)	0.6x
EBITDA Margin	11.1%
Net Profit Margin	0.2%
Return on Net Worth	0.6%
Debtor Turnover Ratio	6.9x
Working Capital Turnover Ratio	9.6x

Additional Disclosures

Unusual or Infrequent Events or Transactions

Except as described in “Risk Management”, there have been no events or transactions to our knowledge that have in the past or may in the future affect our business operations or financial performance which may be described as “unusual” or “infrequent”.

New Product or Business Segments

Other than as described in “Company Overview” there are no new products or business segments in which we operate.

Supplier or Customer Concentration

We do not have any material dependence on a single or few suppliers. We have a wide customer base and do not have any material dependence on any customer.

Significant Economic Changes

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations. See “Risk Management”.

Related Party Transactions

The details of the related party transactions have been provided in “Financial Statements”

Known Trends or Uncertainties

There are no known trends or uncertainties that have or had or are expected to have a material adverse effect on our revenue or income from continuing operations.

Seasonality

The Company?s business is not seasonal in nature.

Competitive Conditions

We expect competitive conditions in our industry to further intensify as new entrants emerge and as existing competitors seek to emulate our business model and offer similar products. For further details, please refer to “Risk Management” and “Company Overview” respectively.

Future Relationships Between Expenditure and Income

Other than as described in “Risk Factors”, “Company Overview”, to our knowledge there are no known factors which we expect will have a material adverse impact on our business operations, financial performance and growth prospects.

D. Risk Management

In the ever-evolving business landscape, marked by a strong emphasis on automation, digital transformation, and data protection, the risk dynamics undergo continuous shifts. At Digitide, we meticulously evaluate both external and internal factors to identify, assess, control, and effectively manage associated risks. Our meticulously crafted Enterprise Risk Management (ERM) framework, which comprehensively covers all aspects of our operations, enables us to gauge the likelihood and impact of identified risks, ensuring proactive risk mitigation. Anchored by a robust Risk Management Framework, we uphold our commitment to aligning with the company?s strategic objectives by comprehensively evaluating risks inherent in our operations.

Risk Management Framework

We?ve embraced a seamlessly integrated ERM Framework, operationalized throughout the organization by our dedicated Risk Management Team. Tailored to accommodate our diverse business needs, our ERM Framework draws from the gold standards of COSO and ISO 31000, ensuring alignment with best practices and principles.

Our framework facilitates systematic and proactive risk identification, actively engaging Business Leaders, Functional Heads, and

Process Owners. By discerning and mitigating risks, our organization optimizes performance and expedites decision-making.

Furthermore, our ERM framework comprehensively identifies strategic, operational, financial, compliance, and sustainability risks, considering both internal and external dimensions across all categories.

Supported by a robust and dynamic internal control system, our ERM Framework boasts the following features:

• Our Board-approved Risk Management Policy delineates a structured and disciplined approach to risk management, aiding strategic decision-making. The Risk Management Committee, composed of Board members and C-suite Executives, diligently reviews and oversees the progress of mitigation plans, offering essential guidance and direction.

• The Corporate-level Risk Management Team maintains constant engagement with independent Internal Auditors to pinpoint areas necessitating strengthened processes and internal controls for enhanced risk management. The Audit Committee conducts in-depth discussions and evaluations of audit findings, including the status of management action plans.

• Business SOPs and policies, alongside centrally issued directives, serve as guiding principles for our internal controls, fortifying our risk management processes.

Risk categories

Risk Category	Description
Strategic Risks	Strategic risk involves uncertainties arising from an organizations leadership decisions on long-term goals, competitive position, and successful execution of strategy. For example, risks associated with business model, service offerings, target markets, etc.
Operational Risks	Risks that impact our service delivery and business practices due to inadequate or failed internal processes, systems, or people. For example, risks associated with day-to-day operations, such as errors in procedures, technology failures, and the ability to scale based on business needs.
Financial Risks	Risks affecting the financial stability and profitability of the business, such as SLA management, fluctuations in market conditions, credit defaults, interest rate changes, etc.
Compliance Risks	Non-adherence to central, state, and international laws governing business activities may result in financial and reputational risks. For example, compliance with labour laws, licenses, and permits, etc.
Sustainability Risks	Risk refers to potential threats posed by environmental, social, and governance (ESG) factors that could adversely affect a companys long-term viability and reputation. These factors include carbon footprint, diversity, inclusion, business ethics, etc.

Key Business Risks

Risk	Risk Description	Description
Revenue Dependence on Key Clients	A large share of revenue comes from a few major clients, exposing the company to risks from contract changes or client- specific challenges.	Digitide is proactively pursuing a client diversification strategy aimed at reducing dependence on a few major clients. The company is expanding its client base by entering new industry verticals and geographical regions. Efforts are also underway to structure multi-year contracts that ensure revenue stability. In addition, value-added offerings and solutioning models are being developed to increase client stickiness and differentiate Digitide from competitors. A focused key account management (KAM) structure has been established to strengthen client engagement and proactively address delivery and commercial concerns.
Working Capital and Cash Flow Cycles	Timing mismatches between client collections and operating expenses, particularly in people intensive or annuity- led businesses, may impact liquidity	The company continues to strengthen its working capital practices through tighter oversight of receivables, improved billing hygiene, and focused liquidity planning. Ongoing digital initiatives and governance mechanisms are expected to support timely collections and efficient cash flow management across business lines.
Transition Risks PostDemerger	The company is undergoing system and governance transitions as part of its recent demerger, which may create shortterm operational or stakeholder alignment challenges.	Digitide is managing the transition through a structured and phased approach, with oversight mechanisms to track progress across key areas. Interim arrangements are in place to ensure continuity of critical services, while internal capabilities are being gradually strengthened to support long-term independence.
Technology and Cybersecurity	Increasing digitalization exposes the business to cyber threats, data breaches, and potential IT disruptions affecting operations and compliance.	Digitide continues to invest in strengthening its cybersecurity posture and system resilience. Periodic reviews, governance oversight, and alignment with evolving best practices are undertaken to mitigate technology-related risks and ensure business continuity.
Talent Availability and Attrition	Demand for skilled professionals, especially in niche roles, and workforce attrition pose delivery and cost risks.	The company continues to refine its talent strategy through ongoing enhancements in sourcing, skilling, and engagement practices. Efforts remain focused on building a resilient workforce pipeline aligned to business needs across geographies and service lines.
Geopolitical Risk	The company operates through subsidiaries and clients across multiple international markets. Political instability, changes in foreign policy, trade barriers, or conflict zones can lead to regulatory uncertainty, delays in service delivery, or cost escalations.	The company monitors geopolitical developments through a combination of internal assessments and external expert inputs. Business continuity planning and flexible delivery models help maintain operational stability.
Competition Risk	The IT services, BPM, and staffing sectors are highly competitive, with both global and regional players offering similar solutions. Aggressive pricing, evolving customer expectations, and digital disruption may impact growth and margins.	The company continues to strengthen its working capital practices through tighter oversight of receivables, improved billing hygiene, and focused liquidity planning. Ongoing digital initiatives and governance mechanisms are expected to support timely collections and efficient cash flow management across business lines.

Our approach to risk management is designed to provide reasonable, but not absolute, assurance that our assets are safeguarded and the business risks are being assessed and mitigated. All information that must be disclosed, is reported to the senior management including the Chairman, CEO, CFO, Audit Committee and the Risk Management Committee of the Board.

Internal Control Systems and Their Adequacy

The Company maintains a robust Internal Control System (ICS), meticulously aligned with the provisions of the Companies Act, 2013, and tailored to the scale, scope, and intricacy of its business operations. The Company has established internal financial controls through comprehensive policies and procedures, duly adopted by the company. These measures ensure the smooth and effective functioning of its business, compliance with all pertinent laws, regulations, and directives from regulatory bodies, protection of assets, authorization of transactions, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and the timely preparation of reliable financial information.

Grant Thornton Bharat LLP conducts internal audit reviews, with the scope and authority stipulated by the Audit Committee. To maintain independence, the Internal Auditor reports directly to the Chairman of the Audit Committee. The Internal Auditor diligently monitors and evaluates the efficiency of the company?s ICS, ensuring adherence to laws and accounting policies. Management meticulously reviews these reports and implements corrective actions to bolster controls. Summaries of periodic audit findings are presented to the Audit Committee.

The Audit Committee reviews Internal Audit reports submitted by the Internal Auditor. The Committee meticulously scrutinizes and evaluates key audit findings to ensure the robustness of financial and internal controls, risk management systems, and processes. Regular audits and reviews serve to reinforce these systems. The internal auditor provides quarterly updates to the Committee on the status of key audit findings to ensure swift implementation of resolutions.

Deloitte Haskins and Sells, the company?s statutory auditors, audit our financial statements and issue a report on our internal controls over financial reporting, as defined under Section 143 of the Companies Act, 2013, which is included in our annual report. Additionally, in accordance with Section 177 of the Companies Act, 2013, read with Regulation 17 of SEBI (LODR) Regulations, 2015, the Statutory Auditors, along with the Audit Committee, have opined that the company maintains, in all material respects, an adequate internal financial controls system over financial reporting and that such controls operated effectively during the year.

Management views the enhancement of ICS as an ongoing endeavour and will persist in efforts to fortify controls, with a focus on preventive and automated measures over manual ones. The company boasts robust ERP and other supplementary IT systems, integral components of its internal control framework. Continual technological advancements are leveraged to further fortify internal controls.