Eyantra Ventures Ltd Management Discussions

GLOBAL ECONOMY

The global economy remained resilient through FY25, with real GDP growth estimated at 2.8%, outperforming earlier projections despite escalating global headwinds. This strength was supported by a broad-based rebound in trade during 2024, initial monetary easing in major economies, and the emergence of new investment drivers, particularly in Asia.

However, the momentum was tested in early 2025 as the global environment became more volatile. A sharp rise in trade restrictions, coupled with rising policy uncertainty, weighed on investor confidence and disrupted supply chains. The surge in tariffs-particularly between the United States and key trading partners-led to an uptick in inflation expectations and triggered turbulence in global equity and bond markets. Although partial tariff rollbacks and pauses were introduced mid-year, financial conditions remained tighter overall relative to late 2024.

Inflation trends diverged across regions. While global inflation moderated from 2023 levels, core inflation remained sticky, especially in advanced economies, due to wage pressures and resilient service-sector pricing. In EMDEs, inflation readings were more volatile but eased modestly due to softer demand for traded goods. On a GDP-weighted basis, global inflation is projected to average 2.9% in 2025, slightly above target.

Commodity prices declined sharply, driven by weak global demand and increased oil production from OPEC+. Energy prices alone are forecast to drop by 15% in 2025, while metals saw mixed trends, with aluminium prices spiking temporarily in response to trade disruptions. EMDEs faced renewed external stress during FY25, as trade uncertainty triggered capital outflows, currency pressures, and widening sovereign spreads, especially in economies with elevated external debt. Although financial markets stabilised following mid-year policy adjustments, borrowing conditions remained challenging. Many EMDE central banks adopted a cautious monetary stance, balancing inflation control with the need to preserve financial stability.

Overall, FY25 was marked by resilience amid volatility, with growth sustained despite significant disruptions in trade, inflation, and capital markets.

OUTLOOK

Global growth is projected to rise marginally to 2.3% in 2025 and 2.6% in 2026, supported by gradual normalisation in trade flows and easing policy uncertainty. However, growth is expected to remain well below pre-pandemic averages, with output materially below earlier forecasts.

While inflation is forecast to decline toward target levels by 2027, upside risks persist due to lingering supply shocks, volatile commodity markets, and potential currency depreciations. The global financial outlook remains cautious, with developing economies particularly exposed to financing risks if global capital conditions tighten further.

Strengthening global recovery will depend on multilateral cooperation to reduce trade frictions, improve debt sustainability, and support vulnerable EMDEs. For sustained progress, structural

reforms in these economies, focused on human capital, labour markets, and institutional capacity, remain essential.

Source: https://openknowledge.worldbank.org/server/api/core/bitstreams/0e685254-776a-40cf-

b0ac-f329dd!82e9b/content

https://www.un.org/development/desa/dpad/publication/world-economic-situation-

andprospects-february-2025-briefing-no-

187/#:~:text=The%20world%20economv%20has%20shown,monetary%20easing%20in%20manv%2

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INDIAN ECONOMY

The global economy remained resilient through FY25, with real GDP growth estimated at 2.8%, outperforming earlier projections despite escalating global headwinds. This strength was supported by a broad-based rebound in trade during 2024, initial monetary easing in major economies, and the emergence of new investment drivers, particularly in Asia.

However, the momentum was tested in early 2025 as the global environment became more volatile. A sharp rise in trade restrictions, coupled with rising policy uncertainty, weighed on investor confidence and disrupted supply chains. The surge in tariffs-particularly between the United States and key trading partners-led to an uptick in inflation expectations and triggered turbulence in global equity and bond markets. Although partial tariff rollbacks and pauses were introduced mid-year, financial conditions remained tighter overall relative to late 2024. Inflation trends diverged across regions.

While global inflation moderated from 2023 levels, core inflation remained sticky, especially in advanced economies, due to wage pressures and resilient service-sector pricing. In EMDEs, inflation readings were more volatile but eased modestly due to softer demand for traded goods. On a GDP- weighted basis, global inflation is projected to average 2.9% in 2025, slightly above target. Commodity prices declined sharply, driven by weak global demand and increased oil production from 0PEC+. Energy prices alone are forecast to drop by 15% in 2025, while metals saw mixed trends, with aluminium prices spiking temporarily in response to trade disruptions. EMDEs faced renewed external stress during FY25, as trade uncertainty triggered capital outflows, currency pressures, and widening sovereign spreads, especially in economies with elevated external debt. Although financial markets stabilised following mid-year policy adjustments, borrowing conditions remained challenging. Many EMDE central banks adopted a cautious monetary stance, balancing inflation control with the need to preserve financial stability.

Overall, FY25 was marked by resilience amid volatility, with growth sustained despite significant disruptions in trade, inflation, and capital markets.

OUTLOOK

Indias economic outlook remains positive and well-supported by fundamentals. According to the World Banks January 2025 Global Economic Prospects report, the economy is projected to grow at 6.7% in both FY26 and FY27, far ahead of most global and regional peers. The forecast reflects

continued expansion in services and manufacturing, stable inflation within the RBI s comfort range, and steady capital inflows. As China s growth moderates to around 4%, India s rise is not just statistical-it signals a structural shift in global economic leadership. With supportive governance, an empowered workforce, and reform continuity, India is poised to shape the next chapter of global growth.

Source: https://www.pib.gov.in/PressNote-Details.aspx?Noteld=154840&Moduleld=3

https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/ian/doc2025118487001.pd

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1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The business environment in which eYantra Ventures operates is undergoing rapid transformation, driven by technology adoption, evolving customer preferences, and macroeconomic trends. The Company has two diversified verticals · Merchandising and IT Services, · each of which is influenced by unique industry dynamics but also benefits from crosssector synergies.

A. Merchandising (Corporate Gifting & Brand Stores)

The Indian corporate gifting and merchandise industry has expanded significantly, with market size estimated at over Rs. 12,000 crore and growing at a CAGR of ~8-10%. Drivers include a strong corporate culture of employee engagement, rising demand for branded lifestyle products, and an increasing shift towards curated hampers and sustainable merchandise.

• Key Trends:

o Companies moving from transactional gifting to curated experiences and brand-store models.

o GST rationalization in the sector, with an emerging push for affordable merchandise categories.

o Demand for premium global brands and digital discovery platforms is gaining traction.

• Positioning: eYantra, is well placed to lead this transition from on-demand fulfilment to pre-discovery, brand-store driven engagement.

B. IT Services

The global IT services industry continues to be shaped by cloud adoption, cybersecurity concerns, and AI/ML deployment. The Indian IT sector remains one of the most competitive worldwide, with an annual growth of 7-9% projected for FY 2025-26.

• Key Trends:

o Al-driven security and automation as top client priorities.

o Increasing shift towards cloud transformation and cost optimization projects due to global macroeconomic uncertainty.

o Rising demand for digital engineering and managed services in the US and European markets.

Positioning: eYantra, through its IT subsidiary Prismberry, has been investing in Al security solutions, certifications, and IP creation. The expansion into US operations, though investment heavy, positions the company to capture higher-value, differentiated projects.

2. OPPORTUNITIES AND THREATS

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

a) Merchandising (Corporate Gifting & Brand Stores)

The merchandising vertical continued to be the largest contributor to revenues in FY 2024-25. Strong demand from corporate clients for curated hampers, premium merchandise, and customized gifting solutions enabled steady growth. Major enterprise accounts across technology, pharmaceuticals, and BFSI verticals contributed significantly to order inflows. The launch of the internal catalogue platform shop.eyantra.com was a key milestone, shifting operations from on-demand fulfilment towards a pre-discovery model. The Company executed multiple large-scale orders, consolidating its position as a leading player in the corporate merchandise space.

• Growth Drivers: Large corporate orders, premium product partnerships

• Performance: Revenue showed healthy year-on-year growth, supported by higher

realization per order and improved operational efficiencies.

b) IT Services

The IT services vertical experienced a mixed year in FY 2024-25. While topline revenues grew however profitability was impacted by increased expenditure on talent acquisition, certifications, and market development. Despite short-term pressure on margins, the vertical made strategic investments in Al-driven security, cloud transformation services, and digital product engineering. These investments are expected to yield long-term benefits and strengthen competitiveness in global markets.

• Growth Drivers: Al-led solutions, cybersecurity demand, expansion into the US.

• Performance: Revenue growth remained positive, though margins contracted due to front- loaded investments in capability building and market entry.

4. OUTLOOK

The Company enters FY 2025-26 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 diversified portfolio offers 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. Alongside Hamper Story, the business is scaling its brand-store model, expanding the internal catalogue platform (shop.eyantra.com), and building partnerships with leading lifestyle and consumer brands. With over 200 products already live on the catalogue and a clear trajectory towards 1,000+, the emphasis will be on pre-discovery led engagement, improved supply chain efficiencies, and higher realization per order. On 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 will remain the largest revenue contributor and a key driver of topline momentum.

In IT Services, the Company will focus on converting its significant upfront investments into sustainable growth. Prismberry will continue to scale its US operations, 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 hubs, such as Europe and the Middle East, is also being evaluated to diversify risk and broaden the client base. With increasing demand for Al-led solutions, cybersecurity, and cloud transformation services, the business is positioned to capture higher-value contracts. Margins, which were under pressure due to investment-led expenses in FY 2024-25, are expected to gradually improve as new client engagements mature and operating leverage is realized.

In Healthcare, Neuro & Spine Associates currently operates with a capacity of 300 beds across three centres in Hyderabad, Vijayawada, and Bangalore. The business has established itself as a trusted provider of specialty care in neurology and spine treatments. Looking ahead, the Company plans to expand capacity by launching a fourth centre with 60-100 beds, further strengthening its presence in Southern India. Alongside organic growth, the Company continues to evaluate strategic acquisitions to accelerate scale and broaden its service portfolio. Quality patient care, clinical excellence, and operational efficiency will remain the cornerstones of growth.

Overall, the Company remains confident of delivering consistent performance by investing in technology, talent, and global expansion, while maintaining strong governance and prudent risk management.

5. RISKS AND CONCERNS:

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 2024-2025.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, 2025. 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

During FY 2024-25, the Company delivered a resilient performance despite global uncertainties and sectoral challenges. The diversified 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.27.59 crore for FY 2024-25, as against Rs.14.06 crore in FY 2023-24, registering a growth of nearly 96% year-on-year.

Profit Before Tax (PBT) stood at Rs.2.23 crore, compared to Rs.1.04 crore in the previous year, reflecting improved scale and operational efficiency. The strong revenue growth was supported by higher client traction in merchandising and steady performance across the healthcare vertical.

The Company maintained a healthy financial structure with no outstanding debt and a debt-to-equity ratio of 0.00. Liquidity remained robust, as reflected in a current ratio of 10.49x, ensuring ample headroom for working capital requirements and growth investments.

Consolidated Financial Performance

On a consolidated basis, the Company achieved revenue from operations of Rs. 32.70 crore in FY 2024-25, compared to Rs.16.76 crore in FY 2023-24. Profit Before Tax stood at Rs.1.71 crore, reflecting the impact of front-loaded investments in IT Services, particularly in overseas expansion and capability building. Despite these costs, the business remained profitable at the consolidated level, underlining the strength of its diversified portfolio.

Total equity rose sharply to Rs.28.53 crore as of March 31,2025, up from Rs.11.91 crore in the previous year, supported by internal accruals and overall balance sheet expansion.

Operational Performance Linkage

• Merchandising: Drove topline growth through large enterprise orders, catalogue expansion, and the launch of shop.eyantra.com. However, margin pressures persisted due to pricing competitiveness.

• IT Services: Recorded revenue growth through US expansion and capability building in Al-led solutions and cybersecurity. Investments increased operating costs, temporarily reducing segment profitability, but positioned the business for long-term growth.

Overall Assessment

FY 2024-25 demonstrated the strength of the Companys diversified business model. Revenue nearly doubled year-on-year, supported by growth in all three verticals. Profitability was moderated by strategic investments in IT Services and competitive pricing dynamics in merchandising, but the Company retained strong liquidity and a debt-free balance sheet. With a robust equity base, scalable platforms, and expansion in healthcare capacity, the Company is well-positioned to sustain momentum in FY 2025-26 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, 2025, the total workforce at the Company was 49 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

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

For and on behalf of the Board of Directors of eYantra Ventures Limited