Fusion Klassroom Edutech Limited Management Discussions

Overview

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial year ended March 31, 2026, 2025, 2024. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Restated Financial Information" and the chapter titled "Other Financial Information" on page 207 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 35 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 26 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Fusion Klassroom Edutech Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Information for the financial year ended March 31, 2026, 2025, 2024 included in this Red Herring Prospectus beginning on page 207 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Fusion Klassroom Edutech Limited is an education technology company operating a scalable, Al-enabled hybrid learning ecosystem in India. Incorporated in 2016, the Company delivers academic education, competitive examination preparation, skill development, and employability-oriented training through its proprietary AI-powered Education OTT platform, offline partner centres, and institutional and government collaborations. The Companys offerings span school education, test preparation, professional and vocational courses, and emerging technology programs, including Artificial Intelligence and Machine Learning. To date, Klassroom has recorded over 6 lakhs cumulative learner registrations, more than 2 lakhs subscribers, and is supported by a library of over 100 courses and more than 3,300 hours of proprietary digital content.

The Company has received multiple national recognitions and awards for its contributions to education and skilling and is backed by marquee investors, reflecting strong market validation and institutional confidence in its platform and execution capabilities.

The Company operates through a diversified, multi-channel business model encompassing B2C, B2B, B2B2C, and B2G segments, generating revenues from digital subscriptions, offline centre fees, institutional licensing, AI-driven content deployment, government project execution, and channel-partner distribution. Klassroom has established long-term relationships with central and state government bodies, universities, skill councils, and private institutions across multiple states, enabling large-scale academic and AI-led skilling deployments. Its asset-light hybrid model, proprietary technology platform, and AI-enabled content and delivery capabilities provide operating leverage, scalability, and resilience, positioning the Company as a trusted education technology partner aligned with Indias education, skilling, and workforce development priorities.

For detailed information on the business of our Company please refer to "Our Business" beginning on page numbers 145 of this Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDIT PERIOD

In the opinion of the Board of Directors of our Company, since the date of the last audited period ended March 31, 2026, as disclosed in this Red Herring Prospectus, there are no circumstances that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the remaining months before the filing of RHP except as follows:

i) The Board of Directors have decided to get their equity shares listed on SME Platform of Bombay Stock Exchange Limited (BSE SME) and pursuant to Section 62(1)(c) of the Companies Act 2013, by a resolution passed at its meeting held on November 20, 2025, proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

ii) The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act 2013, by a

special resolution passed in the Extraordinary General Meeting held on December 12, 2025, authorized the Initial Public Issue.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 35 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• Any adverse changes in central or state government policies;

• Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

• Loss of one or more of our key customers and/or suppliers;

• An increase in the productivity and overall efficiency of our competitors;

• Our ability to maintain and enhance our brand image;

• Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

• Company s ability to adopt the changing technology in Edutech industry;

• Companys results of operations and financial performance;

• Significant developments in Indias economic and fiscal policies;

• Failure to adapt to the changing needs of industry and in particular PR and advertising industry may adversely affect our business and financial condition;

• Volatility in the Indian and global capital market;

SIGNIFICANT ACCOUNTING POLICIES:

For Significant accounting policies please refer "Significant Accounting Policies to the Restated Financial Information", under Section titled "Financial Information" beginning on page 207 of the Red Herring Prospectus.

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts for financial year(s) ended on March 31, 2026, March 31, 2025 and March 31, 2024 and the components of which are also expressed as a percentage of total income for such periods.

(Rs in Lakhs)

Particulars	Year ended March 31, 2026	Year ended March 31, 2025	Year ended March 31, 2024
I. INCOME
(a) Revenue from operations	2,303.95	1,008.65	458.30
(b) Other income	6.26	1.93	4.09
TOTAL INCOME ( a+b )	2,310.21	1,010.58	462.39
II. EXPENSES
(a) Cost of materials consumed	-	-	-
(b) Operating expenses	378.59	221.88	121.86
(c) Purchase of stock-in-trade	296.39	84.12	-
(d) Changes in inventories of stock-in-trade	(276.15)	(71.48)	-
(e) Employee benefit expenses	111.70	59.60	44.66
(f) Depreciation and amortization expense	309.24	77.92	52.96
(g) Finance costs	44.82	20.74	9.25
(h) Other expenses	494.42	308.18	190.25
TOTAL EXPENSES (a+b+c+d+e+f+g+h)	1,359.01	700.95	418.98
III. Profit before exceptional items and tax (I-II)	951.20	309.63	43.41
IV. Exceptional items	-	-	-
V. Profit before tax (III-IV)	951.20	309.63	43.41
VI. Tax expense:
(a) Current tax	159.22	-	-
(b) Deterred tax	31.86	19.21	9.03
	191.08	19.21	9.03
			232
VII. Profit for the period	760.12	290.42	34.38

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT Income

Our Total Income comprises Revenue from core business operations and Other Income.

Revenue from Operations

The Revenue from Operations consists of revenue from tuition fees, including study kits, courseware and sale of learning devices. Our Revenue from Operations as a percentage of Total Income was 99.73%, 99.81% and 99.12% for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Other Income

Other Income primarily comprises Interest Income earned on bank deposits and other incidental income. Other Income as a percentage of Total Income was 0.27%, 0.19% and 0.88% for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Expenditure

Our Total Expenditure primarily consists of Operating Expenses, Purchase of Stock-in-Trade, Changes in Inventories of Stock-in-Trade, Employee Benefit Expenses, Finance Costs, Depreciation and Amortization Expenses and Other Expenses, which represented 58.83%, 69.36% and 90.61% of Total Income for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Cost of Operations

Cost of Operations primarily comprises Operating Expenses, Purchase of Stock-in-Trade and Changes in Inventories of Stock-in-Trade relating to the Companys educational products and services, including tuition fees paid to vendors, courseware procurement and learning devices. Cost of Operations constitutes a significant component of the Companys total expenditure and represented 17.26%, 23.21% and 26.35% of Total Income for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Employee Benefit Expenses

Employee Benefit Expenses constitute a significant component of the Companys operating expenses and include salaries and wages, managerial remuneration, contribution to provident and other funds, gratuity and staff welfare expenses. Employee Benefit Expenses as a percentage of Total Income were 4.84%, 5.90% and 9.66% for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Other Expenses

Other Expenses primarily comprise audit fees, advertisement and publicity expenses, professional and legal fees, rent, repairs and maintenance, software maintenance expenses, travelling and conveyance expenses, telephone, postage and courier expenses, printing and stationery expenses, contractor expenses and other administrative expenses. Other Expenses as a percentage of Total Income were 21.40%, 30.49% and 41.14% for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Finance Costs

Finance Costs comprise interest on borrowings, loan processing charges and other borrowing-related costs. Finance Costs increased from Rs9.25 lakhs in FY2024 to U20.74 lakhs in FY2025 and further to Rs44.82 lakhs in FY2026, primarily on account of higher borrowings availed to support the Companys expanding business operations and working capital requirements.

Depreciation and Amortization

Depreciation and Amortization comprise depreciation on property, plant and equipment and amortization of intangible assets. Depreciation and Amortization increased from 11.45% of Total Income in FY2024 to 7.71%

in FY2025 and 13.39% in FY2026. The increase in FY2026 was primarily attributable to significant additions to intangible assets and other capital assets made to support the Companys business expansion and technology initiatives.

FINANCIAL YEAR 2025-26 COMPARED WITH FINANCIAL YEAR 2024-25

The Total Income for FY2025-26 has substantially increased by 128.60% from Rs1,010.58 lakhs for FY2024-25 to Rs2,310.21 lakhs for FY2025-26.

Revenue from Operations

• FY2026: Rs2,303.95 lakhs (99.73% of total income)

• FY2025: Rs1,008.65 lakhs (99.81% of total income)

Analysis:

Revenue from operations increased substantially by Rs1,295.30 lakhs or 128.42% from FY2024-25 to FY2025- 26. This growth was primarily attributable to increased student enrolments, expansion of institutional partnerships, higher sales of learning devices and courseware, and continued growth across the Companys Edutech business verticals. The increase reflects the Companys ability to successfully scale its operations while maintaining strong demand for its products and services.

Other Income

• FY2026: Rs6.26 lakhs (0.27% of total income)

• FY2025: Rs1.93 lakhs (0.19% of total income)

Analysis:

Other income increased by Rs4.33 lakhs or 224.35%, primarily due to higher interest income earned on temporary deployment of surplus funds in bank deposits and other incidental income during the year.

Total Income

• FY2026: Rs2,310.21 lakhs

• FY2025: Rs1,010.58 lakhs

Analysis:

The total income increased by Rs1,299.63 lakhs or 128.60%, largely driven by the significant increase in revenue from operations during FY2025-26.

Expenditure

Cost of Operations

(Cost of Operations includes Operating Expenses, Purchase of Stock-in-Trade and Changes in Inventories.)

• FY2026: Rs398.83 lakhs (17.26% of total income)

• FY2025: Rs234.52 lakhs (23.21% of total income)

Analysis:

The cost of operations increased by Rs164.31 lakhs or 70.06% in FY2025-26, primarily due to higher procurement of learning devices and courseware to support business expansion. However, cost of operations as a percentage of total income declined from 23.21% in FY2024-25 to 17.26% in FY2025-26, reflecting improved operating efficiencies, better procurement management and benefits arising from economies of scale.

Employee Benefit Expenses

• FY2026: Rs111.70 lakhs (4.84% of total income)

• FY2025: Rs59.60 lakhs (5.90% of total income)

Analysis:

Employee benefit expenses increased by Rs52.10 lakhs or 87.42%, primarily due to expansion of the workforce to support the increased scale of operations. However, employee benefit expenses as a percentage of total income declined, indicating improved employee productivity and operating leverage.

Finance Costs

• FY2026: Rs44.82 lakhs (1.94% of total income)

• FY2025: Rs20.74 lakhs (2.05% of total income)

Analysis:

Finance costs increased by Rs24.08 lakhs or 116.10%, primarily due to increased utilisation of borrowings for business expansion and working capital requirements. Despite the increase, finance costs as a percentage of total income remained well controlled.

Depreciation and Amortization Expense

• FY2026: Rs309.24 lakhs (13.39% of total income)

• FY2025: Rs77.92 lakhs (7.71% of total income)

Analysis:

Depreciation and amortization expense increased significantly by Rs231.32 lakhs or 296.87%, primarily due to substantial investments made in intangible assets, technology platforms and other capital assets during the year to support future business growth.

Other Expenses

• FY2026: Rs494.42 lakhs (21.40% of total income)

• FY2025: Rs308.18 lakhs (30.50% of total income)

Analysis:

Other expenses increased by Rs186.24 lakhs or 60.43%, mainly due to expansion in business operations. However, the increase was significantly lower than the growth in total income, resulting in a reduction in other expenses as a percentage of total income from 30.50% in FY2024-25 to 21.40% in FY2025-26, demonstrating improved cost efficiency and scalability of operations.

Profitability

Profit Before Tax (PBT)

• FY2026: Rs951.20 lakhs (41.17% of total income)

• FY2025: Rs309.63 lakhs (30.64% of total income)

Analysis:

Profit before tax increased by Rs641.56 lakhs or 207.20%, primarily driven by strong revenue growth, improved operating efficiencies, and effective management of operating expenses despite continued investments in technology and business expansion.

Provision for Taxes

• Current Tax: Current tax expense amounted to Rs159.22 lakhs in FY2025-26 as compared to Nil in FY2024-25, primarily due to the substantial increase in taxable profits during the year and the exhaustion of brought forward tax losses available for set-off.

• Deferred Tax: Deferred tax expense increased by Rs12.65 lakhs, from Rs19.21 lakhs in FY2024-25 to Rs31.86

lakhs in FY2025-26, primarily on account of timing differences arising between the accounting treatment and tax treatment of certain assets and liabilities.

Analysis:

The increase in the overall tax expense reflects the Companys significantly improved profitability during FY2025-26, resulting in recognition of current tax liability, while the increase in deferred tax expense is attributable to temporary timing differences recognized in accordance with the applicable accounting standards.

Net Profit After Tax (PAT)

• FY2026: Rs760.12 lakhs (32.90% of total income)

• FY2025: Rs290.42 lakhs (28.74% of total income)

Analysis:

Net profit after tax increased by Rs469.70 lakhs or 161.73%, primarily driven by substantial growth in revenue from operations, improved operating margins and enhanced business scalability, notwithstanding higher depreciation, finance costs and tax expenses incurred during the year.

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2026	2025
Return on Net worth %	53.45%	41.66%
Current Ratio (times)	1.33	3.30

Return on Net worth

This is defined as Net profit after tax by Average Net worth, based on the Restated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Summary Statements.

FINANCIAL YEAR 2024-25 COMPARED WITH FINANCIAL YEAR 2023-24

The Total Income for FY2024-25 has substantially increased by 118.56% from Rs462.39 lakhs for FY 2023-24 to Rs1,010.58 lakhs for FY 2024-25.

Revenue from Operations

• FY25: Rs1,008.65 lakhs (99.81% of total revenue)

• FY24: Rs458.30 lakhs (99.12% of total revenue)

Analysis:

Revenue from operations increased substantially by Rs550.35 lakhs or 120.09% from FY24 to FY25. This growth

was primarily attributable to higher demand for Edutech, addition of students and institutions, and improved operational execution across facilities. The increase indicates a positive trajectory in business volume.

Other Income

• FY25: Rs1.93 lakhs (0.19% of total revenue)

• FY24: Rs4.09 lakhs (0.88% of total revenue)

Analysis:

There is a decrease of Rs2.16 lakhs or 52.79% in other income, reflecting proper fund planning by utilising the fund into business when and needed and making bank deposits when not needed.

Total Revenue

• FY25: Rs1,010.58 lakhs

• FY24: Rs462.39 lakhs

Analysis:

The total revenue has been increased by Rs548.19 lakhs or 118.56%, largely driven by an increase in operational income.

Expenditure Cost of Operation

• FY25: Rs234.52 lakhs (23.21% of total revenue)

• FY24: ^121.86 lakhs (26.35% of total revenue)

Analysis:

The Cost of Operation includes Operating expenses, Purchase of stock in trade and changes in inventories. The cost of operation increased by Rs112.66 lakhs or 92.45% in FY25, leading to an increase in the percentage of total revenue by 118.56% in FY 25 from FY24. This suggests higher cost of operation, possibly from inflation or increased operational activities.

Employee Benefit Expenses

• FY25: Rs59.60 lakhs (5.90% of total revenue)

• FY24: Rs44.66 lakhs (9.66% of total revenue)

Analysis:

There is an increase of Rs14.95 lakhs or 33.47% in employee benefit expenses, due to substantial increase in the percentage of total revenue. This indicates better cost control in employee-related expenses.

Finance Costs

• FY25: Rs20.74 lakhs (2.05% of total revenue)

• FY24: Rs9.25 lakhs (2.00% of total revenue)

Analysis:

Finance costs increased by ^11.49 lakhs or 124.17%, reflecting possibly higher borrowing or interest rates, or additional borrowings to fund operations or expansion.

Depreciation and Amortization Expense

• FY25: Rs77.92 lakhs (7.71% of total revenue)

• FY24: Rs52.96 lakhs (11.45% of total revenue)

Analysis:

The depreciation expense increased significantly by Rs24.96 lakhs or 47.13%, indicating the addition of assets which has resulted in a higher expense in FY25.

Other Expenses

• FY25: Rs308.18 lakhs (30.50% of total revenue)

• FY24: Rs190.25 lakhs (41.14% of total revenue)

Analysis:

Other expenses increased by ^117.94 lakhs or 61.99%, which is very low from that of increase in total revenue which is a substantial improvement. The controlled increment in other expenses suggests better cost management and operational efficiencies.

Profitability

Profit Before Tax (PBT)

• FY25: Rs309.62 lakhs (30.64% of total revenue)

• FY24: Rs43.41 lakhs (9.39% of total revenue)

Analysis:

The profit before tax improved significantly by Rs266.21 lakhs or 613.21%, indicating better cost control, especially in other expenses, and strong operational performance with substantial increase in revenue.

Provision for Taxes

• Current Tax: Remains in FY25 is Nil same as FY24 due to offset against accumulated previous years losses.

• Deferred Tax: The deferred tax liability increased by Rs10.18 lakhs, moving from Rs9.03 lakhs to Rs19.21 lakhs, indicating timing differences or tax adjustments.

Analysis:

The increase in deferred tax suggests that temporary tax liabilities from previous years are being increased.

Net Profit After Tax (PAT)

• FY25: Rs290.42 lakhs (28.74% of total revenue)

• FY24: Rs34.38 lakhs (7.44% of total revenue)

Analysis:

The net profit after tax saw a significant improvement of Rs256.04 Lakhs or 744.59%, primarily driven by higher profitability (PBT), effective cost control, and favourable tax adjustments.

Other key ratios:
Particulars	For the Financial Years ended March 31,
	2025	2024
Return on Net worth %	41.66%	13.08%
Current Ratio (times)	3.30	1.71

Return on Net worth

This is defined as Net profit after tax by Average Net worth, based on the Restated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Summary Statements.

The Net Capital Turnover Ratio is calculated as revenue from operations divided by net working capital (current assets less current liabilities). While revenue from operations increased significantly in Fiscal 2026 as compared

to Fiscal 2024, the ratio declined mainly due to a higher working capital base as at the balance sheet date, resulting in a larger denominator.

The increase in working capital was driven by higher balances under current assets. Cash and cash equivalents and other bank balances increased primarily due to improved internal accruals in the Fiscal 2026, with a portion of funds remaining temporarily unutilized pending deployment. Inventory levels increased due to bundling of digital offerings with learning devices. Trade receivables decreased marginally, which typically operate on longer credit cycles but offer higher contract values and improved margins.

Accordingly, the decline in the Trade Receivables Turnover Ratio and increase in debtor days reflect the evolving revenue mix and scale expansion rather than deterioration in credit quality. Similarly, the increase in working capital facility utilization aligns with higher operational scale and receivable cycles associated with enterprise-led growth.

Working Capital Movement and Efficiency Rationale

in lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Current Assets
Inventories	347.64	71.48	-
Trade Receivables	59.66	66.13	0.18
Other Current Assets	69.38	16.01	7.62
Total (A)	476.68	153.62	7.8
Current Liabilities
Trade Payables	88.77	50.69	-
Other Current Liabilities and Provisions	195.23	11.90	6.52
Total (B)	284.00	62.59	6.52
Total Working Capital (A)-(BI	192.68	91.03	1.28
Funding Pattern
Borrowings from banks, financial institutions and non-banking financial companies (including bill discounting) and related parties	192.68	91.03	1.28
Internal Accruals	-	-	-

Assumptions for our estimated working capital requirements

Particulars	FY 2026	FY 2025	FY 2024
Inventory Days	55	26	-
Trade Receivables Days	9	24	-
Trade Payables Days	14	18	-

Estimated holding days have been rounded to the nearest whole number.

Our working capital requirements have increased in line with the significant scale-up in operations and expansion in our business model, resulting in a perceived deterioration in working capital efficiency. However, the increase is primarily structural and growth-led rather than indicative of operational inefficiencies.

Total working capital increased from Rs91.03 lakhs as at March 31, 2025 to Rs192.68 lakhs as at March 31, 2026. This increase is attributable to (i) scale-up in inventory stocking, (ii) the growth in trade payables has been lower than the growth in revenue and (iii) build-up of operational current assets to support growth initiatives. Despite strong revenue growth, the working capital cycle has expanded moderately due to strategic investments in inventory and channel expansion, which are expected to normalize over time as the Company attains operating leverage and improves procurement cycles.

Detailed Working Capital Gap Analysis

1. Inventory

Inventory increased from Rs71.48 lakhs as at March 31, 2025 to Rs347.64 lakhs as at March 31, 2026. The increase is primarily attributable to:

• Strategic stocking of learning devices and courseware to support the significant expansion in operations.

• Higher procurement of inventories to cater to increased student enrolments and anticipated demand of business.

• Expansion into new geographies and distribution channels, requiring higher inventory levels to ensure timely delivery and uninterrupted service.

• Procurement in bulk quantities to achieve economies of scale, strengthen supply chain efficiency and improve overall gross margins.

2. Trade Receivables

Trade receivables decreased from Rs66.13 lakhs as at March 31, 2025 to Rs59.66 lakhs as at March 31, 2026. This movement is primarily attributable to:

• Improved collection efficiency and strengthened receivables management during the year.

• Faster realization of dues from institutional customers and channel partners.

• Better credit monitoring and disciplined collection processes despite substantial growth in revenue.

• The reduction in trade receivables reflects the Companys prudent credit management practices and healthy cash conversion cycle.

3. Other Current Assets

Other current assets increased from Rs16.01 lakhs as at March 31, 2025 to Rs69.38 lakhs as at March 31, 2026. The increase is primarily attributable to:

• An increase in TDS receivable from Rs15.62 lakhs to Rs39.14 lakhs, primarily due to higher tax deductions corresponding to the significant increase in revenue during the year.

• Advance income tax paid amounting to Rs30.00 lakhs as at March 31, 2026, reflecting the Companys improved profitability and advance tax obligations arising during the year.

• Other current assets remained largely stable at Rs0.24 lakhs as at March 31, 2026.

The increase in other current assets is principally attributable to statutory tax-related balances arising in the ordinary course of business and is consistent with the Companys increased scale of operations and profitability during the year.

4. Current Liabilities and Trade Payables

Trade payables increased from Rs50.69 lakhs as at March 31, 2025 to Rs88.77 lakhs as at March 31, 2026, primarily reflecting the higher procurement of inventories and increased scale of operations. However, the growth in trade payables has remained lower than the growth in revenue from operations, demonstrating the Companys efficient working capital management, disciplined supplier payment practices and strong vendor relationships.

Other current liabilities and provisions increased from ^11.90 lakhs as at March 31, 2025 to Rs195.23 lakhs as at March 31, 2026. The increase was primarily due to higher statutory liabilities, provision for current income tax, employee-related accruals, outstanding business expenses and other operational liabilities arising from the significant expansion in business activities during the year.

CASH FLOW

The table below summaries our cash flows from our Restated Financial Information for the financial years March 31, 2026, March 31, 2025, and March 31, 2024:

in Lakhs)

Particulars	For the Financial Years ended March 31,
	2026	2025	2024
Net cash (used in)/ Generated from operating activities	1,071.40	354.93	93.84
Net cash (used in)/ Generated from investing activities	(1,243.54)	(595.41)	(176.04)
Net cash (used in)/ Generated from finance activities	248.29	332.87	95.72

Cash flow from Operating Activities For the year ended March 31, 2026

The net cash generated from operating activities was Rs1,071.40 lakhs, which consisted of profit before tax of Rs951.20 lakhs as adjusted primarily for:

i. Depreciation and amortization of non-current assets of Rs309.24 lakhs.

ii. Interest and finance charges of Rs44.82 lakhs for the year.

iii. Interest income of (Rs6.26) lakhs.

iv. non-cash expenses - Advisory Stock Option of Rs26.89 lakhs.

v. Working capital changes primarily due to increase in inventories of (Rs276.15) lakhs, decrease in trade receivables of Rs6.47 lakhs, increase in other current assets of (Rs37.46) lakhs, increase in trade payables of Rs38.07 lakhs, increase in other current liabilities of Rs22.88 lakhs and increase in provisions of Rs7.59 lakhs.

For the year ended March 31, 2025

The net cash generated from operating activities was Rs354.93 lakhs, which consisted of profit before tax of Rs309.62 lakhs as adjusted primarily for:

i. Depreciation and amortization of non-current assets of Rs77.92 lakhs.

ii. Interest and finance charges of Rs20.74 lakhs for the year.

iii. Interest income of (Rs1.93) lakhs.

iv. non-cash expenses - Advisory Stock Option of Rs33.74 lakhs.

v. Working capital changes primarily due to increase in inventories of (Rs71.48) lakhs, increase in trade receivables of (Rs65.96) lakhs, increase in other current assets of (Rs14.14) lakhs, increase in trade payables of Rs50.69 lakhs, and increase in other current liabilities of Rs9.98 lakhs.

For the year ended March 31, 2024

The net cash generated from operating activities was Rs93.84 lakhs, which consisted of profit before tax of Rs43.41 lakhs as adjusted primarily for:

i. Depreciation and amortization of non-current assets of Rs52.96 lakhs.

ii. Interest and finance charges of Rs9.25 lakhs for the year.

iii. Interest income of (Rs4.09) lakhs.

iv. Working capital changes primarily due to increase in trade receivables of (Rs0.18) lakhs, increase in other current assets of (Rs7.27) lakhs, decrease in trade payables of (Rs5.03) lakhs, and increase in other current liabilities of Rs0.76 lakhs.

Cash Flow from Investing Activities For the year ended March 31, 2026

The Company reported a net cash outflow from investing activities of Rs1,243.54 lakhs. This significant outflow was primarily on account of purchase of Property, Plant and Equipment and Intangible Assets amounting to Rs370.58 lakhs and Rs1,066.58 lakhs, respectively. The outflow was partially offset by redemption of bank deposits of Rs187.36 lakhs and interest received of Rs6.26 lakhs.

For the year ended March 31, 2025

The Company reported a net cash outflow from investing activities of Rs595.41 lakhs. This significant outflow was primarily on account of purchase of Property, Plant and Equipment and Intangible Assets amounting to Rs48.45 lakhs

and Rs358.89 lakhs, respectively, and investment in bank deposits of Rs190.00 lakhs, which was partially offset by interest received of Rs1.93 lakhs.

For the year ended March 31, 2024

The Company reported a net cash outflow from investing activities of Rs176.04 lakhs. This significant outflow was primarily on account of purchase of Property, Plant and Equipment and Intangible Assets amounting to Rs2.10 lakhs and Rs247.82 lakhs, respectively. The outflow was partially offset by redemption of bank deposits of Rs69.80 lakhs and interest received of Rs4.09 lakhs.

Cash Flow from Financing Activities

For the year ended March 31, 2026

The net cash generated from financing activities was Rs248.29 lakhs, primarily driven by issue of preference share capital of Rs83.31 lakhs, availment of long-term borrowings amounting to Rs81.42 lakhs, and net increase in shortterm borrowings of Rs159.83 lakhs. This was partially offset by share issue expenses of Rs44.82 lakhs and finance costs paid of ^31.45 lakhs.

For the year ended March 31, 2025

The net cash generated from financing activities was Rs332.87 lakhs, primarily driven by issue of preference share capital of Rs298.95 lakhs, availment of long-term borrowings amounting to Rs14.17 lakhs, and net increase in shortterm borrowings of Rs52.71 lakhs. This was partially offset by share issue expenses of Rs20.74 lakhs and finance costs paid of Rs12.22 lakhs.

For the year ended March 31, 2024

The net cash generated from financing activities was Rs95.72 lakhs, primarily driven by issue of preference share capital of Rs120.36 lakhs and net increase in short-term borrowings of Rs16.80 lakhs. This was partially offset by repayment of long-term borrowings of Rs21.36 lakhs, repayment of debentures of Rs3.41 lakhs, share issue expenses of Rs9.25 lakhs, and finance costs paid of Rs7.42 lakhs.

OTHER FACTORS

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Draft Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue, or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 35 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 35, 145 and 236 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Total turnover of each major industry segment in which our Company operates

We currently operate in the OTT based education platform providing education & skill development courses via online and offline mode. For details on revenue break-up from each segment, kindly refer the chapter titled "Our Business" beginning on Page 145. Relevant industry data, as available, has been included in the section titled "Industry Overview" beginning on page 132 of this Red Herring Prospectus.

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Section "Our Business", our Company has not announced any new product or services.

7. Seasonality of business

Our Companys business is not seasonal in nature.

8. Dependence on single or few customers or suppliers

Besides our B2C business, we have established strong and long-standing relationships with a limited number of B2B clients, enterprise customers, channel partners and distributors, which contribute significantly to our revenue.