GenXAI Analytics Ltd Management Discussions

Global Economic Overview

The global economy continues to demonstrate resilience despite an uncertain environment shaped by geopolitical tensions, energy-market volatility and evolving financial conditions. According to the IMF World Economic Outlook Update, July 2026, global economic growth is projected at 3.0% in 2026, followed by an improvement to 3.4% in 2027. The outlook, however, remains uneven, with geopolitical developments weighing on energy-importing economies while technology-led investment continues to support activity across economies integrated into the global technology value chain.

Inflation also remains an important consideration, with the IMF projecting global headline inflation at 4.7% in 2026. Against this backdrop, enterprises continue to prioritise productivity, cost optimisation, operational agility and data -led decision-making, reinforcing the strategic relevance of cloud, analytics, automation and Artificial Intelligence investments.

Indian Economic Overview

India continues to remain one of the fastest-growing major economies, supported by resilient domestic economic activity. According to the IMFs July 2026 update, Indias real GDP growth is projected at 6.4% in 2026, with growth expected to strengthen in 2027 as the impact of the prevailing energy shock dissipates. The IMF has indicated that recent economic activity has remained resilient, although higher energy prices present a near-term headwind.

Indias structural growth drivers including domestic consumption, digitalisation, an expanding services ecosystem and a large technology talent base continue to provide a supportive environment for the technology sector. Increasing adoption of cloud platforms, enterprise applications, data analytics, automation and Al, alongside the continued evolution of Indias Global Capability Centre ecosystem, further strengthens the countrys position as an important global technology and business services hub.

Global Industry Overview

The global enterprise technology landscape is undergoing a significant transformation, driven by accelerating digitalisation, cloud adoption, data-led decision-making and the growing integration of Artificial Intelligence (Al) and Machine Learning (ML) into business processes. Enterprises are increasingly modernising legacy technology environments and adopting integrated platforms to improve scalability, operational efficiency and real-time decision -making.

EPM - From Financial Planning to Enterprise Intelligence

Enterprise Performance Management (EPM) is evolving beyond its traditional role in budgeting, consolidation and reporting towards a broader enterprise decision-support framework. Modern EPM platforms increasingly support planning, forecasting, scenario modelling, predictive analytics and performance monitoring, extending their application beyond finance into sales, supply chain, workforce planning and operations.

This evolution is being accelerated by the transition towards cloud-based EPM platforms, which provide greater scalability, accessibility and integration with broader enterprise systems. At the same time, Al and ML are enabling more predictive and adaptive capabilities across forecasting, scenario planning, analytics and workflow automation.

Generative and Agentic Al - The Next Phase

The emergence of Generative Al and Agentic Al is further expanding the role of intelligence within enterprise systems. As Al becomes increasingly integrated with enterprise applications and data environments, its application is progressing from individual productivity tools towards intelligent workflows and increasingly sophisticated automated decision processes.

According to D&B Primary Research, the global Enterprise Agentic Al market is estimated at USD 3.6 billion in CY2025 and is projected to reach USD 25.4 billion by CY2030, representing a CAGR of 47.8%.

Indian Industry Overview

India has established itself as a major global technology and business services hub, supported by its large technology talent pool, increasing digital adoption and sustained global demand for technology services. The Indian IT-BPM industry has progressively expanded beyond traditional software development and outsourcing towards higher-value capabilities encompassing consulting, cloud computing, analytics, automation and Artificial Intelligence.

The industrys revenue increased from approximately USD 167 billion in FY2018 to USD 283 billion in Fy2025, representing a CAGR of approximately 7.8%. It is projected to reach approximately USD 300 billion in Fy2026 and USD 350 billion by FY2030, supported by continued digital transformation, cloud and Al investments, SaaS adoption and the expansion of Global Capability Centres (GCCs).

Enterprise Technology and Al Adoption

Within Indias enterprise technology ecosystem, adoption of cloud-based EPM, enterprise applications, data analytics and Al is increasing as organisations modernise legacy systems and seek greater scalability and operational efficiency. Indias EPM ecosystem is supported by global technology platforms alongside Indian system integrators and technology service providers providing implementation, customisation, integration and managed services.

Indias expanding GCC ecosystem provides an additional structural growth driver. The number of GCCs increased from approximately 1,430 in FY2019 to more than 1,700 in FY2024, employing nearly 1.9 million professionals.

As GCCs increasingly undertake higher-value activities across product engineering, data analytics, cloud technologies and Al, their technology requirements are becoming increasingly sophisticated.

Artificial Intelligence is also becoming increasingly integrated into enterprise modernisation, with applications across process automation, predictive analytics, forecasting and data-driven decision-making. The convergence of Al with ERP, EPM, analytics and enterprise data platforms is expected to further expand enterprise use cases and support the transition towards more intelligent and automated workflows.

Company Overview

GenXAl Analytics Limited is an enterprise technology and analytics company with capabilities spanning Enterprise Performance Management (EPM), Enterprise Resource Planning (ERP), Data Engineering and Analytics, Application and Web Development, and Generative Al-led solutions.

The Companys enterprise technology journey expanded meaningfully in 2019 with its partnership for the implementation of the Anaplan connected planning platform, through which it strengthened its presence in Enterprise Performance Management, encompassing planning, budgeting, forecasting and modelling across business functions. Overtime, GenXAl expanded beyond EPM into data engineering, application development, automation and digital workflow services. This evolution has been supported through a combination of organic capability development, strategic acquisitions and the establishment of subsidiaries and step-down subsidiaries in India and overseas.

The Companys broader ecosystem brings together specialised capabilities across Al-based automation and analytics, enterprise performance transformation, cloud migration, custom software and application development, digital transformation, loT and industrial automation, and technology resource support. Its overseas entities also support EPM implementation and technology consulting requirements across international markets.

Alongside its services portfolio, GenXAl has developed proprietary Al-led platforms and enterprise solutions.

These include domain-focused Finance, Operations and Sales Language Models, along with solutions such as Smart Invoice Processing. The Companys positioning reflects its focus on bringing together Al capabilities, enterprise expertise, analytics and scalable technology delivery to address evolving enterprise requirements.

Business Performance

FY2025-26 marked a significant expansion in the scale of GenXAIs operations. On a consolidated basis, Revenue from Operations increased to Rs.88.3 crore in FY26 from Rs.28.5 crore in FY25, reflecting the continued expansion of the Groups business and capabilities. Total Income stood at Rs.89.0 crore, compared with Rs.28.9 crore in the previous year.

The growth in scale was accompanied by a strong improvement in profitability. Profit Before Tax increased to Rs.22.1 crore in FY26 from Rs.8.9 crore in FY25, while Profit After Tax from continuing operations increased to Rs.17.3 crore from Rs.6.5 crore. Profit attributable to the owners of the Parent stood at Rs.13.6 crore in FY26, compared with Rs.6.6 crore in FY25.

The Groups balance sheet also expanded in line with the growth in operations, with total assets increasing to Rs.80.9 crore as at March 31,2026 from Rs.23.6 crore as at March 31,2025. The increase reflects the investments and working-capital requirements associated with the growing scale of the business.

During the year, the Group continued to strengthen its capabilities across Enterprise Performance Management, Data Engineering & Analytics, Application Development and Al-led enterprise solutions, broadening its ability to address evolving technology requirements across its customer base.

Overall, FY26 represented a year of significant scale-up for GenXAl, characterised by strong revenue growth, improved profitability and continued expansion of the Groups enterprise technology capabilities, providing a stronger operating foundation for its next phase of growth.

Outlook

The outlook for GenXAl remains positive, supported by continued enterprise investments in digital transformation, cloud adoption, data analytics and Artificial Intelligence. As organisations increasingly modernise legacy technology environments and seek greater automation, agility and data-driven decision-making, demand for specialised enterprise technology solutions is expected to remain favourable.

The continued evolution of Enterprise Performance Management (EPM), alongside increasing adoption of cloud -based platforms and Al-enabled planning and forecasting, presents opportunities aligned with GenXAIs established capabilities. At the same time, growing enterprise adoption of Generative Al and Agentic Al is creating new use cases across intelligent automation, analytics and enterprise decision-making.

GenXAl is positioned to address these opportunities through its capabilities across EPM, ERP, Data Engineering & Analytics, Application Development and Generative Al solutions. The Company remains focused on deepening customer relationships, strengthening its technology partnerships and expanding its capabilities across emerging areas of enterprise technology.

A key strategic priority will be the continued development of proprietary Al-led products and intellectual property, enabling the Company to complement its technology services capabilities with scalable and differentiated solutions. GenXAl also intends to continue investing in specialised talent and technology capabilities required to remain relevant in a rapidly evolving enterprise technology environment.

Looking ahead, the Company remains focused on sustainable and profitable growth, supported by disciplined execution, continued innovation and prudent capital allocation. With an expanding technology portfolio and increasing focus on Al-led enterprise solutions, GenXAl aims to strengthen its position as an enterprise technology partner and participate in the next phase of intelligent enterprise transformation.

Financial Performance & Operational Performance

The Companys financial and operational performance duringFY26 reflects the continued evolution and scaling of its business. Key financial and operational indicators for the year are presented below:

Return on Equity (ROE): ROE stood at 60.9% in FY26, compared with 85.5% in FY25, reflecting the Companys ability to generate returns on shareholders equity.

Return on Capital Employed (ROCE): ROCE stood at 62.6% in FY26, compared with 70.% in FY25, indicating the efficiency with which the Company deployed its capital base.

Debtor Days: Debtor days stood at 67 days in FY26, compared with 61 days in FY25, reflecting the movement in the Companys receivables and collection cycle during the year.

Cash Conversion Cycle: The cash conversion cycle stood at 147 days in FY26, compared with 87 days in Fy25, reflecting the overall movement in the Companys working capital cycle.

Net Debt-to-Equity: The net debt-to-equity ratio stood at 0.5x in FY26, compared with 0.7x in FY25, reflecting the Companys leverage position and capital structure.

EBITDA Margin: EBITDA margin stood at 27.1% in FY26, compared with 33.9% in FY25, reflecting the Companys operating profitability during the year.

PAT Margin: PAT margin stood at 15.4% in FY26, compared with 23.2% in FY25, reflecting the Companys overall profitability after accounting for finance costs, depreciation, amortisation and taxes