Emiac Technologies Ltd Management Discussions

-GLOBAL ECONOMIC OVERVIEW

The global economy remained resilient during FY 2025-26 despite continued uncertainties
arising from geopolitical developments, changing trade policies, inflationary pressures and
evolving financial conditions. While economic growth remained uneven across geographies,
businesses across sectors continued to adapt to changing market conditions and evolving
consumer behaviour.

The global business environment continued to witness accelerated adoption of digital
technologies, artificial intelligence, automation, data analytics and digital communication
platforms. Businesses increasingly focused on technology-enabled solutions to improve
operational efficiency, customer engagement and market reach.

The advertising and marketing industry continued to undergo a structural shift towards digital
platforms. Increasing internet penetration, social media usage, online video consumption and e-
commerce adoption have resulted in businesses allocating greater attention to digital channels
for brand building, customer acquisition and engagement.

Going forward, businesses are expected to increasingly focus on digital transformation,
personalised communication, data-driven decision-making and measurable marketing outcomes.
The continued development of artificial intelligence and other emerging technologies is also
expected to influence the manner in which content is created, distributed and consumed
globally.

-INDIAN ECONOMIC OVERVIEW

The Indian economy continued to demonstrate resilience during FY 2025-26, supported by
domestic consumption, investment, infrastructure development, digitalization and the
expanding technology ecosystem.

Indias rapidly expanding digital infrastructure and increasing internet and smartphone
penetration have significantly changed consumer behaviour. Consumers are increasingly using
digital platforms to search for information, discover brands, consume content, interact with
businesses and make purchasing decisions.

The continued expansion of the digital economy has created favourable opportunities for
businesses operating in digital marketing, content marketing, social media, search engine
optimization and other technology-enabled marketing services.

Indias digital advertising ecosystem has continued to expand rapidly. According to the ET Brand
Equity-lpsos State of Digital Marketing in India 2025-26, digital advertising accounted for 44%
of Indias advertising market in FY2025 and was projected to increase to 46% in FY2026. The
report also highlighted the increasing importance of mobile platforms, social media, regional-
language content and emerging technologies in shaping digital marketing strategies.

The increasing adoption of digital channels by businesses, including small and medium-sized
enterprises and digital-first businesses, is expected to provide continued opportunities for
companies providing digital marketing and content marketing services.

-BUSINESS OVERVIEW

EMIAC Technologies Limited is a digital marketing and content marketing company engaged in
providing digital marketing, content-related and technology-enabled solutions to its clients.

The Company assists businesses in establishing and strengthening their digital presence through
a combination of digital marketing strategies, content creation and other digital communication
solutions. The Companys approach is focused on understanding the objectives and requirements
of its clients and developing solutions designed to improve online visibility, brand
communication, customer engagement and digital reach.

The Companys business activities broadly include digital marketing, content marketing, digital
content creation, search engine optimization (SEO), social media marketing, online brand
promotion and related digital marketing services.

Content marketing forms an important part of the Companys service offering. The Company
focuses on creating relevant, informative and engaging content that enables businesses to
communicate effectively with their target audiences. Content may be utilised across websites,
search engines, social media platforms and other digital channels depending upon the
requirements of clients.

The Company also focuses on developing digital strategies aligned with the changing behaviour
of online audiences. Through the use of digital platforms, analytics and technology-enabled
marketing tools, the Company seeks to assist clients in reaching relevant audiences and
improving their digital engagement.

The Company believes that the ability to combine content, creativity, digital platforms and

technology is increasingly important for businesses seeking to establish a sustainable digital
presence.

During FY 2025-26, the Company continued to focus on strengthening its service capabilities,
enhancing client engagement and identifying opportunities arising from the increasing adoption
of digital marketing by businesses.

-INDUSTRY OVERVIEW - DIGITAL MARKETING AND CONTENT MARKETING

The Indian digital marketing industry has undergone significant transformation, supported by
increasing internet penetration, smartphone adoption, social media usage, e-commerce growth
and changing consumer behaviour.

Digital advertising has emerged as one of the fastest-growing components of Indias advertising
industry. CRISIL reported in 2025 that digital media accounted for approximately 45^46% of
Indias total advertising expenditure and was expected to continue growing faster than
traditional media.

The growing importance of digital platforms has resulted in businesses increasingly using search
engines, social media, online video, websites, content platforms and other digital channels to
reach consumers. Digital marketing provides businesses with the ability to target specific
audiences and measure various aspects of campaign performance.

Content marketing has become an important element of digital marketing strategies. Businesses
are increasingly using blogs, articles, videos, social media posts, infographics, newsletters and
other forms of digital content to create awareness, educate customers and build long-term
engagement.

Search Engine Optimization continues to play an important role in improving organic visibility,
while social media marketing provides businesses with opportunities to communicate directly
with consumers and build communities around their brands.

The industry is also witnessing increasing adoption of Artificial Intelligence (Al), automation,
analytics and other emerging technologies. These technologies are creating opportunities for
improved content development, audience analysis, personalization, campaign optimization and
operational efficiency.

At the same time, the industry remains highly competitive and rapidly evolving. Changes in search
engine algorithms, social media platforms, advertising policies, consumer preferences and
emerging technologies require digital marketing companies to continuously develop their
capabilities and adapt their strategies.

The Company believes that the continued digitalization of businesses and increasing importance
of online brand visibility provide significant opportunities for growth in the digital marketing and
content marketing sector.

BUSINESS STRATEGY AND OUTLOOK

The Companys business strategy is focused on strengthening its position in the digital marketing
and content marketing segment by expanding its capabilities, improving service quality and
building sustainable relationships with clients.

The Company intends to focus on delivering customized digital marketing and content solutions
based on the specific requirements and objectives of its clients.

The Company will continue to focus on the following key areas:

- Strengthening digital marketing and content marketing capabilities;

- Enhancing the quality and relevance of digital content;

- Expanding its presence across digital and social media platforms;

- Strengthening SEO and digital visibility solutions;

- Leveraging data and analytics for better marketing outcomes;

- Adopting relevant emerging technologies, including Al and automation;

- Enhancing client engagement and retention; and

- Identifying new opportunities arising from the continued expansion of the digital economy.

The Company believes that the continued shift of businesses towards digital-first customer
engagement provides a favourable environment for the Companys future growth.

- OPPORTUNITIES

The increasing digitalization of businesses presents significant opportunities for the Company.
The major opportunities available to the Company include:

1. Increasing Digital Adoption

Businesses across industries are increasingly recognizing the importance of digital presence and
online customer engagement, creating sustained demand for digital marketing services.

2. Growth of Content Marketing

The increasing importance of informative, engaging and relevant content provides opportunities
for the Company to expand its content marketing services.

3. Social Media Growth

The continued growth of social media and short-form digital content provides businesses with
new avenues for brand communication and customer engagement.

4. E-commerce Expansion

The continued growth of e-commerce is increasing the need for businesses to establish strong
online visibility and customer acquisition strategies.

5. Artificial Intelligence and Automation

Al and automation provide opportunities to improve content development, campaign analysis,
personalization and operational efficiency.

6. SME and Emerging Business Segment

Small and medium-sized businesses and emerging digital-first brands are increasingly seeking
professional digital marketing support to establish and expand their online presence.

-RISKS AND CONCERNS

The Companys business is subject to various risks associated with the digital marketing industry
and the broader business environment.

The digital marketing industry is highly competitive, with numerous agencies, specialized service
providers, technology companies and independent professionals offering similar services. The
Company is therefore required to continuously enhance its capabilities and service quality to
remain competitive.

The Companys business is also influenced by changes in digital platforms, search engine
algorithms, social media policies and online advertising practices. Changes in these areas may
affect the effectiveness of digital marketing campaigns and require frequent adaptation of
strategies.

Rapid technological developments, particularly in artificial intelligence and automated content
creation, may also significantly influence the industry. While such developments create
opportunities, they may also increase competitive pressures and require continuous investment
in skills and technology.

Other risks include changes in client spending patterns, dependence on key clients or digital
platforms, availability and retention of skilled personnel, data privacy and cybersecurity risks,
changes in applicable laws and regulations and broader economic conditions.

The Company seeks to manage these risks through continuous monitoring of market
developments, strengthening its human resources and technology capabilities, maintaining client
relationships and adapting its service offerings to changing industry requirements.

-HUMAN RESOURCES

The Company recognizes that its employees are one of its key assets and that skilled, creative
and committed human resources are essential for the success of a digital marketing and content
marketing business.

The Company seeks to attract, develop and retain personnel with relevant expertise in digital
marketing, content creation, SEO, social media, creative communication, technology and related
areas.

The Company encourages employees to continuously enhance their skills and remain abreast of
changing digital platforms, marketing trends and emerging technologies. The Company seeks to
maintain a professional and collaborative work environment based on teamwork, creativity,
ethical conduct and accountability.

The relationship between the management and employees remained cordial during the year
under review.

As on 31st March, 2026, the Company had 36 permanent employees.

-INTERNAL CONTROL MECHANISM

The Company has established internal control systems and procedures commensurate with its
size, scale and nature of operations.

The Companys internal control framework is designed to ensure effective and efficient
operations, safeguarding of assets, reliability of financial reporting and compliance with
applicable laws, regulations and internal policies.

The Companys internal controls cover its operational, financial and administrative processes.
The adequacy and effectiveness of the internal control systems are reviewed periodically by the
management.

Internal audit and review mechanisms assist in evaluating processes and controls and identifying
areas requiring improvement. Relevant observations and recommendations are considered by
the management and, wherever applicable, reviewed by the Audit Committee.

The Company continues to strengthen its internal control environment in line with the growth
and evolving requirements of its business.

-FINANCIAL PERFORMANCE

The financial performance of the Company during FY 2025-26 reflects the Companys business
operations during the year.

The detailed financial performance, including revenue from operations, expenditure, profitability
and other relevant financial parameters, is provided in the Financial Statements forming part of
this Annual Report.

The management continues to focus on improving operational efficiency, strengthening client
relationships, expanding its service offerings and pursuing sustainable business growth.

-MATERIAL DEVELOPMENTS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

Subsequent to the end of FY 2025-26, the Company achieved a significant milestone by
completing its Initial Public Offering (IPO) of 32,40,000 Equity Shares and the Equity Shares of
the Company were listed on the BSE SME Platform on 13th April, 2026.

The listing represents an important milestone in the Companys growth journey and provides the
Company with an enhanced platform to pursue its business objectives, strengthen its market
presence and create long-term value for its shareholders.

The Company intends to leverage the opportunities arising from its enhanced market profile and
continue to strengthen its digital marketing and content marketing capabilities.

-CAUTIONARY STATEMENT / DISCLAIMER

Statements in this Management Discussion and Analysis describing the Companys objectives,
expectations, projections, estimates or other forward-looking information may constitute
forward-looking statements within the meaning of applicable securities laws and regulations.

Actual results may differ materially from those expressed or implied in such forward-looking
statements. Important factors that could cause actual results to differ include changes in
economic and market conditions, client demand, competition, technological developments,
changes in digital platforms and algorithms, availability of skilled personnel, changes in
Government policies and regulations, data privacy and cybersecurity considerations, tax laws and
other applicable statutes, and other factors that may affect the Companys business and
operations.

The Company undertakes no obligation to publicly update or revise any forward-looking
statements except as may be required under applicable laws and regulations.

-KEY RATIOS:

		For the period ended 31st March, 2026
Particulars	31-Mar-26	31-Mar-25	%Change	Reason for Variance (For Variation of More than 25%)
Current Ratio (in times)	3.46	1.84	87.98%	On account of significant increase in current assets and reduction in current liabilities during the year.
Debt Equity ratio (in times)	0.032	0.001	3376.54%	On account of significant increase in borrowings during the year, coupled with the movement in shareholders equity resulting in an increase in the debt-equity ratio.
Debt Service coverage Ratio (in times)	91.52	7237.58	-98.74%	On account of significant increase in debt service obligations during the year due to increase in borrowings, resulting in a lower debt service coverage ratio.
Return on Equity (in %)	33.32%	81.59%	-59.16%	On account of significant increase in average shareholders equity during the year due to bonus issue,

 

				coupled with decrease in profitability during the year.
Inventory Turnover ratio (in times)	NA	NA	NA	NA
Trade Receivable Turnover ratio (in times)	5.25	4.33	21.16%	NA
Trade Payable Turnover ratio (in times)	4.71	3.22	46.19%	On account of significant increase in advertising and marketing expenses during the year compared to the increase in average trade payables
Net Capital Turnover Ratio (in times)	3.07	5.65	-45.56%	On account of significant increase in average working capital during the year, while revenue from operations did not increase proportionately.
Net Profit Ratio (in %)	11.19%	21.30%	-47.44%	On account of significant decrease in net profit during the year, while revenue from operations did not decrease proportionately
Return on Capital Employed (in %)	39.72%	63.50%	-37.46%	On account of significant increase in capital employed during the year due to bonus issue and increase in borrowings, coupled with the movement in operating.
Return on Investment	3.66%	17.80%	-79.44%	On account of significant increase in value of investments during the year compared to the increase in realized profit on sale on investments during the year.