Exato Technologies Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS Global Economy

The global AI-as-a-Service (AIaaS) market was estimated at approximately USD 28.81 billion in 2026 and is projected to reach approximately USD 240.48 billion by 2034 at a CAGR of around 30.37%. The Customer Experience-as-a-Service (CXaaS) and Customer Experience Management (CXM) segment stood at approximately USD 14.40 billion globally in 2026 and is expected to reach USD 30.76 billion by 2035 at a CAGR of approximately 8.80%.

Several structural developments supported the continued adoption of AI and customer experience technologies during the year. Enterprises increasingly moved from experimentation with Generative AI towards production-grade deployment, while demand increased for specialised implementation partners capable of integrating AI into live contact-centre and customer experience environments.

- Vertical AI adoption increased across BFSI, healthcare, retail and telecom, with enterprises seeking domain-specific incorporating regulatory requirements, sector-specific models and specialised workflows.

- Generative AI increasingly moved from proof-of-concept initiatives towards production deployment and integration with existing enterprise systems.

- Omnichannel customer engagement across voice, chat, email and digital channels became increasingly important as enterprises sought consistent customer journeys.

- Talent shortages in specialised AI and CX roles, together with the growing adoption of subscription-based SaaS models, supported demand for managed technology delivery.

- Enterprises increasingly focused on customer retention, automation and productivity, strengthening the strategic importance of customer experience management.

As the global economy during FY2025-26 continued to operate against a backdrop of geopolitical uncertainty, evolving trade conditions, changing interest-rate expectations and uneven growth across major economies. Enterprises across markets remained focused on improving productivity, strengthening operational resilience, optimising costs and accelerating digital transformation.

Within this environment, technology adoption remained an important structural driver of enterprise investment. Artificial

Intelligence, cloud computing, automation, analytics, customer experience platforms and managed technology services continued to gain importance as enterprises sought measurable business outcomes rather than technology adoption in isolation.

Indian Economy

India continued to demonstrate resilience and structural growth during FY2025-26, supported by domestic consumption, services activity, infrastructure investment, increasing digitalisation and policy initiatives. The technology and services sector remained an important contributor to Indias economic growth and export earnings.

The continued expansion of Indias digital infrastructure and enterprise technology ecosystem, together with increasing adoption of

ArtificialIntelligence, cloud platforms, automation and customer experience solutions, provides a favourable operating environment for technology companies. Indias large pool of skilled professionals, cost-efficient delivery capabilities and growing relevance as a global technology hub continue to support the countrys competitiveness in international markets.

Indias AIaaS market was approximately USD 9.2 billion in 2025 and is projected to reach USD 43.7 billion by 2031 at a CAGR of approximately 29.40%. The Indian CXM market was valued at approximately USD 1,137.5 million in 2025 and is projected to reach approximately USD 3,496.2 million by 2032 at a CAGR of approximately 17.50%.

The increasing adoption of AI-enabled recommendations, conversational interfaces, chatbots and automated interactions is contributing to broader acceptance of AI solutions across Indian enterprises and consumers. These developments are particularly relevant to businesses operating in customer experience, conversational AI, automation, analytics and enterprise technology.

Industry Overview

Indian IT and Business Process Management (BPM) continues to be one of the key growth sectors of the Indian economy. The industry is undergoing a structural transition from traditional IT services and outsourcing towards higher-value digital transformation,

Artificial Intelligence, cloud, analytics, automation, engineering and managed technology services.

The growing adoption of AIaaS and CXaaS is creating opportunities for technology service providers capable of combining domain expertise with implementation, integration and managed services. Enterprises are increasingly seeking technology partners that can integrate multiple platforms and deliver end-to-end transformation rather than isolated point solutions.

The Indian market also provides a strong delivery advantage to companies serving international customers. Indias technology talent pool and established IT services ecosystem allow companies to combine global sales and customer engagement with delivery capabilities from India, thereby supporting scalable and cost-efficient business models.

For Exato, the industrys evolution towards AI-enabled customer experience, omnichannel engagement, automation, analytics, cloud infrastructure and enterprise applications is closely aligned with the Companys service portfolio and strategic priorities.

Company Overview

Exato Technologies Limited, incorporated in 2016 and headquartered in Noida, Uttar Pradesh, is an AI-first enterprise technology company specialising in digital transformation, customer experience automation and managed technology services. The Company leverages Artificial Intelligence, Cloud Computing, and Omnichannel Communications to help businesses create seamless and intelligent customer experiences.

The Company has an expanding international presence across the United States, Singapore and Australia, supported by its global sales and delivery capabilities. The Companys operations and service offerings are focused on delivering technology-led solutions to enterprise customers across multiple geographies and industry verticals.

Exato is strategically positioned at the intersection of AIaaS and CXaaS and operates as a Customer Transformation Partner delivering CXaaS, AIaaS, Unified Communications and Analytics through an integrated, outcome-driven technology stack. The

Company serves more than 150 enterprise clients across more than 10 countries, including 9 of the 10 leading Indian banks, and enables more than 1,50,000 agents through its proprietary and partner-platform technologies. Client retention exceeds 97%.

The Companys integrated service portfolio comprises Customer Experience and Analytics, Unified Communications, AI

Infrastructure, the proprietary ExatoIQ platform and Cloud ERP solutions.

The CX & Analytics offering includes CXaaS, Conversational AI, chatbots, voice bots, Natural Language Processing, Generative AI, Automation-as-a-Service, Robotic Process Automation and Workforce Management. These solutions are delivered through an integrated data layer designed to support AI-driven insights, sentiment analysis, compliance monitoring, improved customer satisfaction and operational efficiency.

The Unified Communications offering provides secure communication and IT foundations including UCaaS platforms, voice, messaging, video and collaboration tools, networking and IT infrastructure and CRM/ERP integrations. These capabilities are designed for mission-critical enterprise environments requiring availability, security and resilient business application integration. The Companys AI Infrastructure offering covers enterprise-grade compute, networking, storage, AI platforms and core enterprise systems, with the ability to deploy AI on-premises or in sovereign cloud environments while maintaining enterprise data within controlled environments.

ExatoIQ is the Companys in-house suite of AI-powered tools for contact-centre optimisation. It includes intelligent connectors, contact-centre optimisation tools, automated dialers and campaign solutions and real-time monitoring and performance intelligence.

The unified AI architecture is intended to support faster deployment, shared intelligence, enterprise governance and scalable AI innovation.

The Company also provides end-to-end Cloud ERP implementation and support, offering a real-time source of truth across finance, inventory, sales, projects and service functions, together with rapid deployment and scalable licensing.

During FY2025-26, Exato served customers across BFSI, BPO/KPO, IT/ITeS, Healthcare, Telecom, Retail and Manufacturing. The Company continued to deepen relationships with existing enterprise clients while acquiring new enterprise logos across geographies.

During the year, Exato successfully completed its Initial Public Offer and was listed on the BSE SME Platform on December 5, 2025 under Scrip Code 544626. The Company also expanded its international footprint through the incorporation of Exato Technologies Pty Ltd in Australia in March 2026.

During the year, the Company also shifted its office operations to its new office premises in Noida, Uttar Pradesh. The new office provides an enhanced and more conducive working environment for the Companys employees and is aligned with its expanding operations, growing team strength and future business requirements.

As on March 31^st 2026 Company had a total order book of approximately 600 crore, of which 221 crore had been delivered and 379 crore remained as executable order-in-hand, providing visibility for future execution. As of today Q1FY27, the Company has a total order book of approximately 660 crore, of which 251 crore had been delivered and 409 crore remained as executable order-in-hand, providing visibility for future execution.

SWOT ANALYSIS

A detailed analysis of the Companys internal strengths and weaknesses, together with external opportunities and threats, provides a comprehensive view of its strategic position.

Strengths

-Integrated Technology Offerings: The Companys combination of CXaaS, AIaaS, Unified Communications, Analytics, AI

Infrastructure, proprietary platforms and Cloud ERP enables it to provide integrated technology solutions to enterprise customers rather than operating only as a point-solution provider.

-Strong Enterprise Relationships: The Company serves more than 150 enterprise clients, including 9 of the 10 leading Indian banks, and has reported client retention exceeding 97%. This provides a strong foundation for recurring engagements, cross-selling and long-term customer relationships.

-Strategic Technology Partnerships: NICE Platinum Partner status and relationships with other global technology partners strengthen the Companys access to technology ecosystems, enterprise customers and international markets.

-Proprietary Technology: ExatoIQ and the Companys developing portfolio of Prompt Base Dialer, UAM, CompliCall and CCaaS/CPaaS capabilities provide opportunities to increase the share of IP-led and higher-margin revenue.

Weaknesses

-International Operations in Investment Phase: Newly established international subsidiaries require continued investment in local leadership, sales infrastructure and market development before reaching mature revenue contribution.

-Specialised Talent Requirements: The Companys business depends on access to specialised AI, CX, cloud and enterprise technology talent, which may have complex longer recruitment cycle.

Opportunities

-Global AIaaS and CXaaS Expansion: Rapid enterprise adoption of AI and customer experience technologies provides a multi-year opportunity for the Company to expand its customer base and solution portfolio.

-Global Expansion: The Companys presence in the US, UK, Singapore and Australia, supported by partner-led go-to-market initiatives, provides opportunities to increase export revenue and diversify geographic exposure.

-Product Diversificationand IP Monetisation: Commercialisation of ExatoIQ, Prompt Base Dialer, UAM, CompliCall and the Companys CCaaS/CPaaS platform provides an opportunity to increase higher-margin IP-led revenue.

-ERP Solutions: The Companys Acumatica partnership provides an opportunity to enter the global ERP solutions market and address additional enterprise technology requirements.

Threats

-Intense Competition: The enterprise AI and CX market includes global technology companies as well as specialised start-ups. Competition may create pricing pressure and require continuous innovation.

-Technological Disruption: Rapid technological advancement in AI may result in existing technologies becoming commoditised, requiring continuous investment in research, development and product enhancement.

-Economic and Foreign Exchange Risks: Changes in global economic conditions and increasing international revenue may affect customer spending, demand and realised margins.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

During FY2025-26, the Company continued to serve customers across diverse industry verticals, with BPO/ITES and IT/ITeS remaining the principal contributors to revenue, followed by BFSI, KPO/Healthcare and other sectors. The Companys revenue by sector during the year was as follows:

Industry Sector	Contribution to Revenue (%)
BPO/ITES	53.78%
IT/ITeS	21.39%
BFSI	15.46%
KPO/Healthcare	4.61%
Others	4.76%

From a solution perspective, software licences constituted the major portion of revenue at 76.37%, followed by Implementation & Consulting Services at 18.35%, Hardware Sales at 4.95% and Maintenance & Repair (Telecom Equipment) at 0.33%. This revenue mix reflects the Companys continued focus on technology and platform-led offerings.

OUTLOOK

The Company remains focused on building a globally scalable, technology-led enterprise with continued emphasis on Artificial

Intelligence, Customer Experience, proprietary technology and digital transformation solutions. During FY2027 and beyond, the Company intends to deepen its presence across international markets, including the United States, United Kingdom, Singapore and Australia, while strengthening its go-to-market capabilities and expanding its enterprise customer base. The Company will also continue to deepen its presence in key verticals such as Healthcare, BFSI and IT/ITeS/BPO, supported by its technology partnerships and growing international footprint.

The Company intends to further strengthen its portfolio of proprietary and platform-led offerings, including ExatoIQ, Prompt Base

Dialer, UAM, CompliCall and its CCaaS/CPaaS capabilities. Continued investment in ArtificialIntelligence, product development and advanced technologies is expected to support greater adoption of IP-led and higher-value offerings and strengthen the Companys competitive positioning. The Company also sees an opportunity to expand its presence in the global ERP solutions market through its Acumatica partnership, particularly across the US and APAC markets.

The company is investing in building a strong global Inside Sales and Business Development engine to accelerate revenue growth, strengthen market penetration across international and domestic markets, and create a focused go-to-market motion for its existing business and own IP led solutions.

Looking ahead, the Company remains committed to strengthening its leadership in Customer Experience (CX), ArtificialIntelligence

(AI), AI Infrastructure and automation-driven solutions; driving continuous innovation through investment in research and development and advanced technologies; expanding its geographical footprint across domestic and international markets through strategic collaborations and partnerships; delivering superior customer value through operational excellence, technology-driven transformation and customer-centric solutions; and creating sustainable long-term value for its shareholders and other stakeholders through responsible growth, sound corporate governance and prudent financial management.

RISKS AND CONCERNS

The Company follows a Risk Management framework aimed at identifying, assessing and mitigating risks that may impact its assets, operations, financial performance and strategic objectives. The framework is implemented with appropriate controls to keep identified risks within acceptable levels.

Internal and External Risks

The Companys risk profile comprises both internal Internaland external risks primarilyrisks. relate to execution, human resources, liquidity and customer concentration, while external risks arise from regulatory developments, foreign exchange movements and changes in the technology landscape.

Internal Risks

Execution and Scale Risk - The Companys growth strategy involves expansion across Australia, the United States and other international markets, while scaling existing operations and developing and commercialising proprietary platforms. Such expansion requires adequate management bandwidth, skilled resources, robust operational processes, appropriate technology infrastructure and disciplined allocation of financial resources. The Company may also need to make upfront investments in local teams, sales and marketing capabilities, technology infrastructure and product development before the expected benefits from such investments are realised. Delays in scaling operations, challenges in integrating new teams or geographies, or difficulties in attracting and retaining suitable talent could adversely affect execution, service quality, margins and overall business performance. The Company is strengthening its leadership, operational processes, governance and technology capabilities to support its expansion plans and sustainable growth.

Human Resource Risk - The availability and retention of specialised AI, CX and enterprise technology talent is critical to the Companys growth. The Company addresses this through targeted recruitment, employee development, leadership strengthening and a conducive work environment.

Credit and Liquidity Risk Trade receivables increased from 3,370.19 Lakhs in FY2025 to 4,293.42 Lakhs in FY2026, broadly reflecting the Companys revenue growth. The Company maintains credit monitoring and receivables management processes and works predominantly with established enterprise customers. Cash and bank balances, including fixed deposits, stood at approximately 4,128.36 Lakhs as at March 31, 2026.

Client Concentration Risk - While the Company serves more than 150 enterprise clients, revenue remains concentrated in certain verticals, particularly BPO/ITES and IT/ITeS. The Company is working to diversify its revenue base through deeper penetration into Healthcare, BFSI and other enterprise segments.

External Risks

Regulatory and Compliance Risk - The Company operates in a regulatory environment subject to changes in corporate, data protection, technology, taxation, employment and other applicable laws and regulations. Such changesmayrequiremodifications to the Companys policies, systems and processes and may result in additional compliance costs. The phased implementation of the Digital Personal Data Protection Act, 2023 and the Digital Personal Data Protection Rules, 2025, as well as proposed reforms to the Companies Act, 2013, may require further adjustments to the Companys compliance and governance framework. The Company continues to monitor regulatory developments and take necessary measures to comply with applicable requirements within the prescribed timelines.

Technology Disruption Risk - Rapid innovation in Artificial Intelligence may result in existing technologies becoming commoditised. The Company mitigates this risk through continued investment in proprietary IP and by focusing on outcome-based platform delivery.

Foreign Exchange Risk - Approximately 23.50% of FY2026 revenue was generated from international markets. As the export contribution increases, the Company will continue to monitor foreign currency exposure and evaluate appropriate risk-management measures.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal financial control systems, commensurate with the size, scale and nature of its operations. These controls are designed to provide reasonable assurance regarding the accuracy and reliability of financial safeguarding of assets, prevention and detection of frauds and errors, and compliance with applicable laws, regulations and listing requirements.

The Companys internal control framework includes documented Standard Operating Procedures and Delegation of Powers across key functions including procurement, order-to-cash, human resources, IT security and treasury management.

The Internal Auditors independently review the design and operating effectiveness of key internal controls, risk management protocols and regulatory compliance across operating units.

The Audit Committee of the Board regularly reviews internal audit observations, system vulnerabilities and corrective action plans implemented by Management.

FINANCIAL AND OPERATIONAL PERFORMANCE

The financial performance of the Company for FY2025 26, along with the comparative figures for FY2024 25, reflects sustained growth in revenue and a significant improvement in profitability. The following discussion is based on the consolidated financial statements.

Particulars	FY 2025-26	FY 2024-25	YoY (%)
Revenue from Operations ( Lakhs)	16,799.58	12,422.55	35.23%
Other Income ( Lakhs)	103.10	193.07	(46.60%)
Total Income ( Lakhs)	16,902.68	12,615.62	33.98%
EBITDA ( Lakhs)	2,539.44	1,594.22	59.29%
EBITDA Margin	15.12%	12.83%	+229 bps
Profit Before Tax( Lakhs)	2,271.64	1,358.93	67.16%
Profit After Tax ( Lakhs)	1,608.88	965.45	66.65%
PAT Margin	9.58%	7.77%	+181 bps
Basic EPS ( )	19.10	13.72	39.21%

Revenue from Operations increased by 35.23% to 16,799.58 Lakhs in FY2025-26 from 12,422.55 Lakhs in FY2024-25. The growth was supported by deeper engagements with existing enterprise clients, cross-selling of newer platform capabilities and contributions from international subsidiaries.

EBITDA increased by 59.29% to 2,539.44 Lakhs, with EBITDA margin improving from 12.83% to 15.12%. Profit After Tax increased by 66.65% to 1,608.88 Lakhs, while PAT margin improved from 7.77% to 9.58%. The improvement in profitability reflects operating leverage from the Companys expanding revenue base and the increasing contribution of technology and platform-led activities. During Q4 FY2025-26, Revenue from Operations stood at 6,108.04 Lakhs, representing a sequential increase of 70.37% over Q3

FY2026 and the highest quarterly revenue reported by the Company. The moderation in quarterly margins reflected strategic investments in international infrastructure, senior leadership, industry events and partner engagements intended to build the Companys future growth pipeline. The balance sheet was materially strengthened following the IPO. Total shareholders funds increased from 4,234.78 Lakhs to 8,830.75 Lakhs, while long-term borrowings reduced from 813.51 Lakhs to 66.12 Lakhs. Intangible assets under development increased from 1,566.25 Lakhs to 2,840.00 Lakhs, reflecting continued investment in proprietary AI platforms and related technology capabilities.

HUMAN RESOURCES

The Company believes that its employees are key contributors to its business success and that its ability to sustain growth depends significantly on attracting, developing, motivating and retaining specialised talent.

As at March 31, 2026, the Companys total employee strength stood at 135 employees, including more than 100 engineers, with resources across technology, sales, consulting, operations and support functions. The Company has developed a talent pool with expertise across Artificial Intelligence, customer experience, cloud infrastructure and enterprise applications.

The Company maintains a leadership team with extensive experience across technology, AI, enterprise transformation, revenue, finance and people management. The strengthening of senior leadership through the COO, CAIO and global revenue leadership is intended to support the Companys next phase of international and technology-led growth.

Exato remains focused on attracting and retaining the skilled and appropriate talent through targeted recruitment, employee development, leadership strengthening and performance management. The Company seeks to foster a performance-oriented and innovation-first culture anchored on accountability, customer centricity and technological curiosity. The Companys FY2027 Annual Operating Plan identifies the creation of a high-performance organisation operating in synchrony as a key strategic priority, supported by a stronger sales-oriented culture and clear accountability metrics across business units and geographies.

Industrial relations remained cordial during the year.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	As at Mar 31, 2026	As at Mar 31, 2025	Variation %	Reason for Variance
Trade receivables turnover ratio (in times)	4.36	4.17	4.56%	Minor improvement driven by high- er revenue growth relative to average trade receivables, alongside disciplined collection workflows during the year
Inventory turnover ratio (in times)	32.88	20.33	61.73%	Ratio is increased due to higher revenue and corresponding higher COGS for current year as compared to previous year
Interest coverage ratio (in times)	13.07	7.56	72.88%	The company paid down existing short-term or long-term debt, leading to a direct improvement in ratio.
Debt service coverage ratio (in times)	1.60	3.04	-47.43%	Due to substantial repayment of Debt out of IPO proceeds
Current Ratio (in times)	2.75	1.76	56.25%	Ratio is increased due to substantial increase in cash and bank balances and reduction in current borrowings and trade payables during the year
Debt-equity ratio (in times)	0.24	0.74	-67.57%	Ratio is decreased due to increase in Equity (IPO) and reduction in external debt (paid during the year). Remained stable due to effective cost management and operational
Operating Profit Margin (in %)	27.17%	27.15%	0.07%	efficiencies offsetting minor inflationary pressures on direct operating expenses.
Net profit Margin (in %)	10%	8%	25%	Ratio is increased due to operational efficiency in employee benefits & finance cost and reduction in bad debts as compared to previous year.
Return on Net Worth (in %)	18.11%	22.03%	-17.79%	Return on Net Worth moderated from 22.03% to 18.11% due to the dilution of the equity base following the successful IPO Moderated primarily due to the expansion of the equity base
Return on equity ratio (in %)	24.43%	26.70%	-8.50%	following fresh capital infusion/ IPO proceeds, partially offset by net profit growth.
Trade payables turnover ratio (in times)	12.37	9.49	30.35%	Ratio is increased due to decrease in trade payables as compared to previous year.
Net capital turnover ratio (in times)	3.73	4.16	-10.34%	Ratio decreased due to a significant increase in net working capital (driv- en by higher cash and bank balances post-equity raising) relative to reve- nue growth.
Return on capital employed (in %)	22%	20%	10%	Ratio increased due to improved EBIT margins, operational delever- aging, and lower finance costs fol- lowing substantial debt repayments during the year.

ACCOUNTING TREATMENT

There has been no treatment different from that prescribed under the applicable Accounting Standards in the preparation of the financial statements of the Company. Accordingly, there is no specific disclosure to be made in this regard

CAUTIONARY STATEMENT

The Management Discussion and Analysis contains statements that describe the Companys goals, forecasts, estimates, expectations and future prospects and may constitute forward-looking statements under applicable laws and regulations. These statements are based on informed judgements, assumptions and estimates and are subject to risks and uncertainties.

The Companys past performance is not necessarily indicative of future results, and actual outcomes may vary materially from those stated or implied. Factors that may affect actual results include changes in economic conditions, customer demand, competitive intensity, technological developments, regulatory and taxation changes, availability and cost of skilled manpower, foreign exchange movements, execution risks and other factors affecting the Companys business and industry.

The Company does not undertake any obligation to publicly update, amend or revise any forward-looking statements in light of new developments, information or events, except as may be required under applicable laws and regulations.

SOURCES

The industry and market data referenced in this Management Discussion and Analysis has been drawn from the following third-party sources.

Sr. No. Source	Link
AI as a Service Market - Fortune 1 Business Insights	https://www.fortunebusinessinsights.com/ai-as-a-service-market-113973
India AI as a Service (AIaaS) Market - 2 Mobility Foresights	https://mobilityforesights.com/product/india-ai-as-a-service-aiaas-market
Customer Experience as a Service	https://www.morganreedinsights.com/customer-experience-as-a-service-
3 (CXaaS) Market - Morgan Reed Insights India Customer Experience	cxaas-market/ https://www.persistencemarketresearch.com/market-research/india-
4 Management Market - Persistence Market Research	customer-experience-management-market.asp
5 Cloud ERP Market - Mordor Intelligence	https://www.mordorintelligence.com/industry-reports/cloud-erp-market https://www.acefone.com/blog/what-is-cxaas/
6 What is CXaaSRs - Acefone
7Artificial Intelligence Market MarketsandMarkets	https://www.marketsandmarkets.com/Market-Reports/artificial-