Eyantra Ventures Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The business environment in which eYantra Ventures operates continued to evolve during FY 2025 26, shaped by accelerating technology adoption, changing customer preferences, and macroeconomic shifts. The Companys two diversi ed verticals Merchandising and IT Services remain in uenced by distinct industry dynamics while continuing to benefit from cross-sector synergies.

A. Merchandising (Corporate Gifting & Brand Stores)

India s corporate gifting industry sustained its momentum in FY 2025 26, with the market accelerating toward Rs.18,000+ crore, driven by digital adoption and festive-driven demand.

Key Trends:

- Continued shift from transactional gifting to curated, experience-led and brand-store models, supported by a growing share of companies formalizing dedicated gifting budgets.

- Major GST reform ("GST 2.0"): Effective 22 September 2025, Indias GST structure was overhauled from a four-slab system to primarily two core slabs 5% and 18% with a new 40% slab reserved for luxury and sin goods. Most supplies earlier taxed at 12% (including several merchandise and apparel categories) moved to 5%, while many items under the erstwhile 28% slab moved to 18%. This directly benefits the corporate gifting and branded-merchandise category, lowering costs on a large part of the product basket and easing compliance. One notable exception relevant to apparel-linked merchandise: garments priced up to Rs.2,500 now attract 5% GST, while higher-value apparel attracts 18%, a threshold companies must factor into premium gifting price points.

- Sustained demand for personalization, sustainable/eco-friendly merchandise, and premium global brands, alongside growing digital discovery platforms.

- Positioning: eYantra continued to strengthen its transition from on-demand ful lment to pre-discovery, brand-store driven engagement. The Companys Brand

Merchandising Division crossed a cumulative order book milestone of Rs.50 crore in the first nine months of FY 2025-26, achieved through engagements across a diverse and growing clientele spanning technology, BFSI, pharmaceuticals, manufacturing, FMCG, and services sectors. Management attributed this progress to strong collaboration across sales, sourcing, and operations teams, along with sustained trust from customers and partners.

B. IT Services:

The global and Indian IT services industry saw an improving growth trajectory in FY 2025 26. Nasscom estimates Indias tech industry revenue rose from $297 billion in FY25(E) to $315 billion in FY26(E), a 6.1% increase, surpassing the $300 billion milestone as anticipated.

Key Trends:

- The industry moved further into an "Operationalised Intelligence" phase, shifting from AI experimentation to function-speci c, vertical-led deployments, with AI-linked revenue estimated at $10 12 billion in FY26.

- A majority of large providers now operate agentic AI platforms, alongside a rising shift toward outcome-based SLAs and pricing models.

- Continued client focus on cloud transformation, cost optimization, and cybersecurity amid global macroeconomic uncertainty, with sustained demand for digital engineering and managed services in the US and

European markets.

- Positioning: eYantra, through its IT Services vertical, continued to invest in AI-led solutions, certi cations, and IP creation, strengthening its offering in enterprise AI applications, cloud transformation, and digital engineering positioning the vertical to capture higher-value, differentiated projects across its target markets.

2. OPPORTUNITIES AND THREATS
Opportunity/ Threat	Our Approach
Decision-making is impacted by macroeconomic uncertainty	- Proactive promotion of business operating model that increase
and geopolitical volatility, which can lead to an increased mix of	efficiency, and enterprise agility.
cost optimization and cloud transformation-led deals and less discretionary spending.	- Proposing product-aligned operating models by utilizing deep client relationships and full services capability.
Technology Investments	- Invest in training workforce in new age technologies like AI & ML
	- Invest in certi cations and IP
Global Expansion	- Proactively analyse business opportunities across the global markets and expand accordingly

3. SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE a. Merchandising (Corporate Gifting & Brand Stores)

The merchandising vertical delivered exceptional growth in

FY 2025 26, remaining the largest contributor to the Companys revenues. eYantras Brand Merchandising Division recorded revenue of Rs.53.5 crore in FY26, compared to Rs.18.9 crore in FY25 a growth of 183% year-on-year, reflecting high client retention and growing demand for enterprise-grade gifting and procurement solutions across India. The division had already crossed a cumulative order book milestone of Rs.50 crore within the first nine months of the scal year, achieved through engagements across sectors including technology, BFSI, pharmaceuticals, manufacturing, and FMCG.

The business now serves 300+ enterprise clients across Hyderabad, Bangalore, Mumbai, and NCR, with a product portfolio spanning 25+ categories, 80+ sub-categories, and 100+ brands, including popular consumer lifestyle ranges across Electronics, Luggage & Travel, Home & Kitchen, Apparel, and Joining Kits. The Companys proprietary own-label range spanning T-shirts, luggage, joining kits, packaging, and stationery continued to be a key margin driver.

- Growth Drivers: Large enterprise order in flows, deepening client relationships across technology, BFSI, pharmaceuticalss, and higherand realization per order. On FMCG, expanding own-label product mix, and continued adoption of the pre-discovery catalogue model.

- Performance: Revenue growth was exceptional at 183% YoY, supported by strong client retention, wider geographic reach, and improved realization from own-label and premium product lines.

b. IT Services

The IT Services vertical delivered steady growth in FY 2025 26. Revenue for the division rose to Rs.16.6 crore in FY26, compared to Rs.13.7 crore in FY25 21% year-on-year growth driven by marquee client wins and the successful launch of its proprietary AI product suite. The business served enterprise clients through a team of 100+ engineers, with active engagements across technology, healthcare, FMCG, and financial services, and operations spanning India, the United States, the UAE, and the Kingdom of Saudi Arabia.

The verticals service portfolio spans enterprise AI applications, custom software development, AI-screened staffing, and proprietary automation, sales intelligence, and computer vision-based solutions. These own-IP products represent the divisions highest-margin growth vector and are now in active commercial discussions with enterprise customers heading into FY27.

- Growth Drivers: AI-led enterprise solutions, launch of proprietary AI products, marquee client wins, and expansion into the US, UAE, and KSA markets.

- Performance: Revenue growth remained healthy at 21% YoY, supported by capability investments made in the prior year beginning to convert into client wins.

4. OUTLOOK

The Company enters FY 2026 27 with cautious optimism, supported by Indias strong domestic demand, rising digital adoption, and sustained healthcare growth. While global macroeconomic conditions and geopolitical developments may create short-term volatility, the Companys diversi ed portfolio continues to offer resilience and long-term opportunities.

In Merchandising, the Company expects continued growth driven by large enterprise orders, deeper penetration into technology, pharma, and BFSI clients, and a sharper focus on curated corporate solutions. Having delivered strong momentum in FY 2025 26, the business will continue scaling its brand-store model, expanding the internal catalogue platform (shop.eyantra.com), and building partnerships with leading lifestyle and consumer brands. The emphasis going forward will be on pre-discovery led engagement, improved supplychain the geographic front, the Company will continue to strengthen its presence in Bangalore, Mumbai, and NCR while scaling Hyderabad to further heights, thereby deepening its reach in Indias largest corporate hubs. Merchandising is expected to remain the largest revenue contributor and a key driver of topline momentum.

In IT Services, the Company will focus on converting its investments made in recent years into sustainable, higher-margin growth. The business will continue to scale its international operations, particularly in the US, which remain central to its long-term strategy, while reinforcing delivery capabilities in NCR and Hyderabad to serve both domestic and international clients more effectively. These hubs will play a critical role in providing round-the-clock support, specialized domain expertise, and operational resilience. Expansion into select international markets, such as Europe and the Middle East, is also being evaluated to diversify risk and broaden the client base. With increasing demand for AI-led solutions, cybersecurity, and cloud transformation services, the business is positioned to capture higher-value contracts, with proprietary AI-led offerings expected to be a key margin driver AI products focused on enterprise going forward. Margins, which were under pressure due to investment-led expenses in prior years, are expected to gradually improve as new client engagements mature and operating leverage is realized.

In Healthcare, the Companys specialty care investment has continued to scale, with operations now spanning three cities and a combined bed capacity of 275 beds and 10 operating theatres, with a clinical focus on neurology, spine,

4. OUTLOOK

The Company enters FY 2026 27 with cautious supported by Indias strong domestic demand, rising digital adoption, and sustained healthcare growth. While global macroeconomic conditions and geopolitical developments may create short-term volatility, the Companys diversi ed portfolio continues to offer resilience and long-term opportunities.

In Merchandising, the Company expects continued growth driven by large enterprise orders, deeper penetration into technology, pharma, and BFSI clients, and a sharper focus on curated corporate solutions. Having delivered strong momentum in FY 2025 26, the business will continue scaling its brand-store model, expanding the internal catalogue platform (shop.eyantra.com), and building partnerships with leading lifestyle and consumer brands. The emphasis going forward will be on pre-discovery led engagement,

5. RISKS AND CONCERNS:

Risk Types	Impact	Mitigation
Regulatory Risks	Non-compliance with changing regulations across multiple jurisdictions	Measures being implemented to ensure seamless compliance:
	could result in penalties, business loss, debarment, reputational damage, and criminal prosecution	- Implementation of a compliance monitoring system to effectively monitor the compliances of all the applicable laws
		- The Company has an in-house compliance team that monitors the compliance. The team engages specialist consultancy services as and when required to help with the regulatory compliances.
Macroeconomic and geopolitical risks	Geopolitical disruptions such as the Russia -Ukraine con ict, US & Israel-Iran war, US-China Relationship and resultant volatility in the global economy may adversely affect the outlook and cause in ation. This, in turn, can result in reduced	- Geopolitical developments like trade wars, sanctions, export controls, and border con icts, which may impact supply chains, lead to the loss of new opportunities, and harm the IT sectors are monitored closely
	revenue growth opportunities, effect on sourcing patterns and tariff costs, that can impact client spending and business costs	- Macro-economic parameters, such as GDP growth, interest rate, and in ation, are tracked to identify uncertainties in economic conditions that may impact the countries in which we operate
Recessions	The Companys operations may be adversely affected due to increased interest rates, in ation, increased energy and labor costs, supply chain delays, and geo-political instability.	- Monitoring and review at management council levels. Rigorous implementation of Business Continuity Plans.
Human capital risk	Human capital risks are associated with high attrition levels, involuntary churn, and employee productivity	- Proactive projections of resource demand
		- Strengthening HRBP functions to address employee concerns proactively to control attrition
		- Actions around talent development, retention, and compensation corrections
Competition risks	In this highly competitive environment, there may be a severe impact on margins due to pricing pressures.	- There is a focus on providing higher value and differentiated services and venturing into new business models.

 

Risk Types	Impact	Mitigation
Cyber security risks	Cyber security and privacy risks can lead to a series of disasters for an organization. Unauthorized use or unlawful disclosure of sensitive data/information can attract hefty nes/penalties from regulators and/	- Data protection controls (encryption, data leakage prevention, etc.) and Cyber security tools ( rewalls, antivirus, etc.) are deployed to prevent cyber-attacks and data ex ltration
	or damage the companys reputation	- The Company has a stringent cybersecurity policy that ensures the timely resolution of incidents. compliances.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has appointed M/s S K S M & Associates as internal auditors for the financial year 2025-2026. They have carried out the internal audit based on an internal audit plan, which is reviewed every quarter and approved by the Audit Committee. The internal audit process is designed to review the adequacy of internal control checks and covers all significant areas of the Companys global operations. The Company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report. The Audit Committee reviews audit reports submitted by the internal auditors. Suggestions for improvement are considered, and the audit committee follows up on the implementation of corrective actions. The committee also meets the Companys statutory auditors to ascertain, inter alia, their views on the adequacy of internal control systems in the Company and keeps the board of directors informed of its key observations from time to time.

The statutory auditors have also independently audited the internal financial controls over financial reporting as of March 31, 2026. They have opined that adequate internal controls over financial reporting exist and that such controls were operating effectively.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE

D uring FY 2025 26, the Company delivered a strong performance, building on the growth momentum established in the previous year. The diversi ed business model across Merchandising, IT Services, and Healthcare provided stability and enabled continued investment in future growth.

Standalone Financial Performance

On a standalone basis, the Company reported net revenue from operations of Rs.67.57 crore for FY 2025 26, as against Rs.27.59 crore in FY 2024 25, registering a growth of nearly 145% year-on-year.

Pro t After Tax (PAT) stood at Rs.26.53 lakh for the year, reflecting continued scale-up of operations and deepening client engagements across the Merchandising vertical, which remained the largest contributor to standalone revenue growth. The strong topline growth was supported by higher client traction and order volumes in merchandising, alongside steady contribution from the healthcare vertical.

Consolidated Financial Performance

On a consolidated basis, the Company achieved revenue from operations of Rs.94.7 crore in FY 2025 26, compared to Rs.32.70 crore in FY 2024 25, reflecting strong growth across the Companys business verticals. However, the consolidated results reflected a net loss of Rs.475.05 lakh for the year, a reversal from the profit reported at the consolidated level in the previous year. This was driven by continued investment-led costs in the IT Services vertical, including overseas expansion and capability building, alongside scale-up costs in the healthcare vertical, even as the Merchandising business delivered strong operating performance.

Operational Performance Linkage

- Merchandising: Drove strong topline growth through large enterprise orders, catalogue expansion, and deepening penetration across technology, BFSI, pharmaceuticals, and FMCG clients. Own-label products continued to support margins, even as pricing competitiveness in the broader market persisted.

- IT Services: Recorded steady revenue growth through expansion into international markets and continued capability building in AI-led solutions and cybersecurity. Investments in talent, certi cations, and market development increased operating costs, moderating segment pro tability, but positioned the business for higher-value contracts and improved margins going forward.

- Healthcare: Continued to scale operations, contributing to overall topline growth while supporting the Companys strategy of building a diversi ed, resilient portfolio.

Overall Assessment

FY 2025–26 demonstrated the scale-up potential of the

Companys diversi ed business model, with consolidated revenue nearly tripling year-on-year, led by exceptional growth in Merchandising. Pro tability at the consolidated level was impacted by strategic investments across IT Services and healthcare expansion, resulting in a net loss for the year despite strong revenue growth. The Companys standalone entity, however, remained pro table, underlining the resilience of its core Merchandising business. With scalable platforms, an expanding client base, and continued investment in technology and healthcare capacity, the Company believes it is well-positioned to convert its FY 2025–26 growth into improved consolidated pro tability in FY 2026 27 and beyond.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

A Companys success depends largely upon our highly-skilled technology professionals and our ability to hire, attract, motivate, retain and train these personnel. To help them unleash their full potential and bring their whole selves to work every single day, we constantly expose them to new learning experiences and programs that can help them learn, unlearn, and relearn.

As of March 31, 2026, the total workforce at the Company was 155. We are growing as a family and taking pride in our cultural and ethnic diversity. Gender parity and womens participation across departments are at the forefront of our growth approach. Equal growth and role opportunities for all while letting go of the prejudices of age, gender, or favoritism is the principle we work on.

9. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO, ALONG WITH DETAILED EXPLAINATION THEREOF:

DETAILS OF SIGNIFICANT CHANGES

Particulars	F.Y 2025-26	F.Y 2024-25	% of changes	Reason for Change
Debtors Turnover	7.50	6.38	17.51%	Increase in collections from customers
Inventory Turnover	63.72	113.89	-44.05%	Increase in closing inventory as on 31 March 2026 due to delay in invoicing to customers.
Interest Coverage Ratio	NA	NA	NA	NA
Current Ratio	2.06	10.49	-80.32%	Increase in current liabilities due to increased operations
Debt Equity Ratio	NA	NA	NA	NA
Operating Pro t Margin (%)	0.93%	8.22%	-88.74%	Decrease in net profit due to initial spending on marketing / business development & promotion.
Net Pro t Margin (%)	0.39%	6.03%	-93.48%	Decrease in pro tability due to increased expenses
Sector Speci c equivalent	NA	NA	NA	NA
Ratio, as applicable

10. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS

FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF- No Change

Cautionary Statement

The statements made in this report describe the Companys objectives and projections that may be forward looking statements within the meaning of applicable laws and regulations. The actual results might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors, which are beyond the control of the Company.