Frog Innovations Ltd Management Discussions

0 INDUSTRY STRUCTURE & DEVELOPMENTS:

Indian Telecom Industry

The Indian telecom industry has maintained strong structural momentum during 2024-2026, driven by accelerating digital adoption, rapid technological advancements, and a supportive regulatory environment. As a cornerstone of Indias digital economy, the sector serves a vast base of ~1.2 billion subscribers and nearly 1 billion internet users, reflecting deep penetration across urban and rural markets. The broadband segment is on a robust growth trajectory, projected to expand at a CAGR of 8.66% from $17.8 billion in 2025 to $37.7 billion by 2034, supported by widespread availability of affordable data and expanding mobile broadband infrastructure. Government initiatives such as the National Broadband Mission 2.0 and BharatNet, along with regulatory reforms, are accelerating investments in fiber networks, towers, and rural connectivity, strengthening the foundation for next- generation services.

India has also emerged as one of the fastest adopters of 5G globally, with coverage extending to ~99% of districts and supported by over 4.5-5 lakh base stations within a short period of launch. The 5G ecosystem is expected to contribute approximately USD 450 billion to the economy by 2040, driven by use cases in smart cities, Industry 4.0, healthcare, and logistics. Rising smartphone penetration, exponential data consumption, and demand for low- latency, high-speed connectivity for emerging technologies such as loT, AI, and automation are further accelerating the need for network rollout, densification, and small-cell deployment.

In parallel, the network deployment services segment is experiencing sustained growth, fuelled by ongoing technology upgrades from 4G to 5G and continuous infrastructure densification. Telecom operators are increasing capital expenditure on site rollouts, fiberisation, and network modernization to meet rising demand for high-speed data and digital services. Regulatory support, including progressive spectrum policies and simplified licensing under the

Telecommunications Act 2023, is enabling faster deployments and operational efficiencies.

Additionally, expansion into tier-2 and tier-3 cities, rural market penetration, and growing enterprise connectivity requirements are creating long-term opportunities for deployment and integration services.

Frog Innovations Position

Frog Innovations is well positioned within Indias expanding telecom ecosystem through its integrated portfolio of network accessories, BTS antennas, repeaters, optical DAS systems, and IBS components, enabling telecom operators to enhance capacity, coverage, and reliability while supporting fiberisation, broadband expansion, and rural connectivity. The Companys strong RF integration capabilities and high-performance solutions align with the growing demands of 5G, particularly in addressing network densification and indoor coverage challenges in high-frequency environments.

Further strengthening its role, Frog Innovations has expanded into 5G site implementation services, providing end-to-end deployment, integration, and optimization, and enabling faster rollouts, seamless network integration, and improved signal performance. This comprehensive approach positions the Company as a key enabler of efficient, scalable, and next-generation telecom infrastructure across both urban and rural markets.

Key Growth Drivers

o Rapid digital adoption across consumers, enterprises, and government services, supported by affordable data tariffs and increasing smartphone penetration, is accelerating mobile internet usage.

o Government-led initiatives such as National Broadband Mission 2.0 and BharatNet, along with supportive regulatory reforms, are driving investments in rural connectivity and telecom infrastructure.

o Exponential growth in data consumption and surge in data-intensive applications (video

streaming, gaming, AR/VR) are increasing demand for high-capacity, high-speed networks. o Accelerated 5G rollout and the transition from 4G are necessitating large-scale network upgrades, densification, and modernization. o Emergence of next-generation technologies (loT, AI, cloud, automation, Industry 4.0) is driving demand for low-latency, high-reliability connectivity.

o Increasing telecom operator capex on fiberisation, site rollouts, and network expansion, including tier-2/3 cities and rural markets.

o Rising enterprise demand for robust, scalable, and high-speed connectivity solutions o Need for faster deployment cycles, operational efficiency, and integrated deployment services is boosting end-to-end network solutions demand.

o Strong long-term economic potential of 5G and digital infrastructure continues to attract sustained investments across the ecosystem.

Video Surveillance and AI Driven Analytical Market

Indias video surveillance and security market is witnessing strong growth, driven by rapid economic expansion and large-scale government initiatives such as Smart Cities, Digital India, PM Gati Shakti, and Bharatmala. Surveillance systems are increasingly becoming integral across public and private sectors, extending beyond traditional security to support applications such as people counting, energy management, and automated number plate recognition. The market is projected to grow at a CAGR of ~9.94%, from $4.84 billion in 2026 to $7.77 billion by 2031.

Simultaneously, the adoption of AI-driven video analytics is transforming the landscape by enabling real-time monitoring, intelligent processing, and proactive threat detection. Advanced capabilities such as pattern recognition, object classification, trend analysis, and automated tagging are enhancing operational efficiency and enabling large-scale deployments across metros, airports, and commercial complexes, thereby expanding the role of surveillance systems into a broader digital infrastructure enabler.

Frog Innovations Position

Frog Innovations has strategically expanded into the video surveillance and security domain through the development of a comprehensive CCTV product portfolio, currently progressing through regulatory approvals, while leveraging its strong foundation in telecom infrastructure and connectivity solutions. This positions the Company to deliver integrated offerings where connectivity and surveillance converge, addressing the rising demand across smart cities, public infrastructure, and enterprise environments.

Further strengthening its capabilities, Frog Innovations has entered the high-growth AI-driven video analytics segment through its AI EYE platform, which enables intelligent monitoring, real-time alerts, and actionable insights. This marks a transition from hardware-centric offerings to value- added digital solutions, enhancing its role within smart infrastructure ecosystems by enabling data- driven decision-making, operational efficiency, and expanded applications beyond traditional security.

Key Growth Drivers

o Rising security requirements across public and private sectors, driven by increasing urbanization and infrastructure development o Strong government push through initiatives such as Smart Cities, Digital India, and large- scale transportation and infrastructure projects o Expansion of surveillance use cases beyond security into traffic management, operational monitoring, retail analytics, and crowd management

o Growing need for real-time monitoring, proactive threat detection, and intelligent decision-making

o Rapid advancements in AI, machine learning, computer vision, and IP/cloud-based technologies enhancing solution capabilities o Integration with smart city ecosystems and intelligent infrastructure, enabling connected and automated environments o Increasing demand for automation and operational efficiency, reducing reliance on manual surveillance

o Availability of high-volume video data enabling advanced analytics, insights, and enterprise applications

o Shift towards organized, compliant, and technology-driven security infrastructure across enterprises and public systems

Digital Connectivity Solutions (In-Building Connectivity)

The demand for digital connectivity solutions, particularly in-building wireless (IBW), is rapidly increasing in India due to changing consumption patterns. Approximately 70-80% of mobile data is consumed indoors, making seamless indoor coverage critical for service quality. However, higher- frequency 5G spectrum faces penetration challenges within buildings, necessitating solutions such as Distributed Antenna Systems (DAS), small cells, and fiber-based indoor networks. The proliferation of smart buildings, loT devices, remote working, and high-density urban infrastructure is further accelerating demand for robust indoor connectivity solutions. Consequently, connectivity is increasingly being treated as a core utility, similar to electricity and water, across commercial and residential real estate.

Frog Innovations Position

Frog Innovations holds a strong leadership position in the in-building connectivity segment through its Optical DAS systems, IBS accessories, repeaters, and Get Five Bars solution. These offerings are specifically designed to address indoor signal challenges and ensure seamless mobile coverage across commercial, residential, and high-density infrastructure environments. With increasing demand for uninterrupted indoor connectivity, the Companys scalable and high-performance solutions place it at the forefront of enabling reliable digital experiences within buildings.

Key Growth Drivers

o High indoor data consumption, making indoor connectivity critical

o 5G spectrum limitations indoors, driving demand for DAS and small-cell solutions o Growth of smart buildings, commercial real estate, and urban infrastructure

o Rising adoption of loT devices and connected ecosystems

o Remote working and digital enterprise

operations increasing indoor network usage o Connectivity becoming a core utility, embedded into building design and infrastructure planning

Digital Infrastructure Certification (Digital

Connectivity Rating)

Digital infrastructure certification is an emerging segment in India with the introduction of the TRAI Digital Connectivity Rating Regulations, 2024, which establish a standardized framework for assessing connectivity in properties. The framework evaluates parameters such as fiber readiness, in-building connectivity, mobile network availability, and Wi -Fi infrastructure, enabling benchmarking and

transparency in digital readiness. This initiative is driven by the growing importance of connectivity in real estate, where digital performance directly impacts occupancy, rental value, and user

experience. As India advances its Digital India and smart city initiatives, adoption of connectivity ratings and certification is expected to grow, creating a new ecosystem of assessment, compliance, and advisory services around digital infrastructure.

Frog Innovations Position

Frog Innovations has established a strategic presence in this emerging segment through its appointment as a Digital Connectivity Rating Agency (DCRA). By evaluating and rating buildings on digital

infrastructure readiness, including in-building connectivity and broadband performance, the Company expands its role beyond product supply into advisory and ecosystem enablement.

Key Growth Drivers

o Introduction of TRAI Digital Connectivity Rating Regulations, 2024, formalizing the segment o Increasing importance of digital readiness in real estate valuation and occupancy o Demand for standardized benchmarking and transparency in connectivity performance o Growth of smart buildings and digitally integrated infrastructure o Rising awareness among developers and enterprises regarding connectivity quality

o Alignment with Digital India and smart city initiatives, driving adoption of certification frameworks

0 OPPORTUNITIES & THREATS:

Opportunities:

1. Expansion of 5G and Network Densification

Indias rapid 5G rollout is driving strong demand for indoor coverage, network densification, and infrastructure upgrades. Frog Innovations, with its expertise in Optical DAS, repeaters, antennas, and 5G site implementation, is well-positioned to benefit from this growth.

2. Rising Demand for In-Building Connectivity (IBW)

With most data usage occurring indoors, demand for reliable in-building coverage is rising across commercial, residential, and public spaces. The companys OneDAS, IBS accessories, and Get Five Bars solutions offer scalable ways to meet this need.

3. Growth in Smart Cities and Infrastructure Projects

Government initiatives like Smart Cities, Digital India, and infrastructure modernization are boosting demand for integrated connectivity and surveillance. Frog Innovations can leverage its telecom and surveillance capabilities to tap into large-scale deployments.

4. Entry into High-Growth Surveillance and AI Segments

The companys expansion into CCTV surveillance and AI-driven video analytics (AI EYE platform) opens access to high-growth, high-margin markets with recurring revenue potential. Combined with connectivity, it creates strong cross-selling opportunities.

5. Diversification into New Product and Service Lines

Entry into EMS, mitigation filters, and defence connectivity solutions reduce reliance on traditional telecom products and expands the

Companys addressable market. These diversified offerings create multiple growth levers across telecom sector.

6. Digital Connectivity Certification Ecosystem

With its appointment as a Digital Connectivity Rating Agency (DCRA), the Company has an opportunity to build a new advisory-led business aligned with regulatory

developments. This positions Frog Innovations not only as a technology provider but also as an ecosystem participant in digital

infrastructure assessment.

7. Increasing Enterprise and Broadband Demand

Rising enterprise digitization, cloud adoption, and broadband usage are driving demand for reliable connectivity and networking

equipment, supporting the Companys expansion into ONT products and integrated solutions.

Threats

1. Intense Competition from Global and Domestic Players

The telecom and surveillance markets are highly competitive, with the presence of large global OEMs and established domestic players. Pricing pressures and competition in large projects may impact margins and market share.

2. Rapid Technological Changes and Obsolescence:

Continuous advancements in telecom

technologies, including evolution beyond 5G

and the shift towards more integrated network architectures, require sustained investment in R&D. Failure to adapt quickly may impact the relevance of existing product offerings.

3. Regulatory and Compliance Risks

Changes in telecom policies, import restrictions, data protection laws, and

surveillance regulations may impact product approvals, deployment timelines, or

operational flexibility, particularly in new business areas such as CCTV and AI.

0 SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Frog Innovations is operating in a single segment and engaged into Digital Repeaters, Active DAS, and related accessories providing mobile coverage solutions. In FY26, the company has expanded its portfolio to include CCTV surveillance business, Next Gen AI video analytics AI-AYE, electronic

manufacturing services (EMS), Get Five Bars, Mitigation Filters and enhanced mobile connectivity solutions for defence sector, Digital Connectivity Rating Agency (appointed by TRAI) and 5G implementation services.

0 GROWTH OUTLOOK

Strengthening Leadership in Core Telecom and Connectivity Solutions

Indias telecom sector continues to offer strong growth opportunities driven by rising data consumption, rapid 5G rollout, and increasing investments in network infrastructure and fiberisation. Frog Innovations, with its established capabilities across design, manufacturing, and RF integration, is well positioned to capitalize on this demand.

Its comprehensive portfolio, including Optical DAS systems, antennas, repeaters, IBS accessories, and network components, enables telecom operators to enhance coverage, capacity, and network reliability. Supported by its manufacturing scale and longstanding relationships with telecom operators, infrastructure providers, and enterprise customers, the Company continues to strengthen its position in both outdoor and in-building connectivity solutions, while expanding its role in network deployment and 5G implementation services.

Expanding into High-Growth Products and Digital Solutions

Building on its core strengths, the Company is diversifying into new product categories and value- added services aligned with emerging industry trends. The addition of surveillance systems, EMS capabilities, and defence connectivity solutions is expanding its addressable market across telecom, enterprise, and strategic sectors.

0 FINANCIAL PERFORMANCE

Financial performance of the Company has been given separately in the Directors Report.

Further, the companys entry into AI -driven video analytics through its AI EYE platform and its role as a Digital Connectivity Rating Agency (DCRA) mark a transition towards integrated, technology-led and advisory-driven offerings. These new capabilities enable the Company to deliver end-to-end solutions that combine connectivity, monitoring, and

intelligence, while also unlocking higher-margin and recurring revenue opportunities.

Frog Innovations is a leading technology company delivering cuffing edge solutions for wireless solutions for wireless communication and intelligent surveillance. With a strong foundation in telecom infrastructure, expanding product portfolio, growing services capabilities, and a diversified customer base, the company is well positioned to benefit from Indias digital and connectivity-led growth. The Companys continued focus on innovation, capacity expansion, and integrated solutions is expected to drive sustainable growth and strengthen its position in the evolving digital infrastructure ecosystem. The Company remains confident in achieving its Vision FY28, focused on scaling its integrated offerings, expanding market presence, and driving long-term value creation across telecom, surveillance, and digital solutions.

0 RISKS AND CONCERNS:

The Company follows a structured Enterprise Risk Management (ERM) framework to manage risks and undertakes appropriate measures and controls across various departments to mitigate them. The Company does not foresee any material risks that warrant specific disclosure or explanation.

0 INTERNAL CONTROL SYSTEMS:

The Company has established a structured internal control system. Considering the size of its operations and its commitment to maintaining high levels of transparency, it has appointed an independent firm of Chartered Accountants, M/s. R G P & Co. LLP (Formerly known as Rajan K Gupta & Co.), as its Internal Auditors to review and cover key aspects of its operations. The Company places strong emphasis on proper maintenance of equipment to ensure optimal performance at rated capacity. It has also implemented effective measures to reduce costs and enhance product quality. Overall, the Company maintains adequate internal controls commensurate with the size and nature of its business operations.

0 HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company continues to focus on strengthening its human resources through effective talent management, employee development, and engagement initiatives. Industrial relations remained cordial and stable during the year, with no significant disruptions. We continued to prioritize employee experience, ensuring that our rapid growth did not compromise our organizational culture

KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

]	31 st March 2026	31 st March 2025	Variance
1 Inventory Turnover ratio	2.29	6.34	(63.89%)
2 Current Ratio	3.54	2.23	59.24%
3 Debt-Equity ratio	0.08	0.13	-34.68%
4 Return on Equity (%)	-2.34%	16.24%	(114.41%)
5 Net Profit ratio (%)	-4.23%	10.74%	-139.39%
6 Debt Service Coverage Ratio	(1.14)	51.91	(102.20%)
7 T rade Receivables T urnover ratio	1.54	3.99	(61.41%)
8 Trade Payables T urnover Ratio	3.90	6.65	-41.30%
9 Net Capital turnover ratio	1.38	3.68	(62.53%)
10 Return on Capital Employed (ROCE) (%)	-4.14%	19.29%	-121.49%
11 Return on Investment (ROI) (%)	0.04	0.07	-39.92%

Reasons for variations more than 25% as compared to previous year

1 The ratio increased because the decrease in current liabilities is more than the decrease in current assets during the year.

2 The decrease in ratio is due to decrease in short term borrowings for the current financial year.

3 The Debt service coverage ratio is decreased due to losses of the company during the year and increase in debt service during the year.

4 The ratio is decreased due to losses of the company as compared to previous year.

5 The ratio decreased due to decrease in sales and increase in inventory as compared to previous financial year.

6 The Trade Receivables Turnover Ratio has decreased due decrease in sales during the year.

7 The Ratio is decreased due to decrease in purchases from previous financial year.

8 The Ratio is decreased due to decrease in revenue during the year as compared to previous financial year.

9 The Ratio is decreased due to decrease in interest income during the year as certain deposits have been matured during the year.

By Order of the Board of Directors For Frog Innovations Limited (Erstwhile Frog Cellsat Limited)

	Konark T rivedi	Sonal Trivedi
Place: London	Managing Director	Whole Time Director
Date: 22 nd June 2026	DIN:00537897	DIN: 00537922