Icodex Publishing Solutions Ltd Management Discussions

1. Industry Structure and Developments

iCodex Publishing Solutions Limited is a public limited company engaged in providing IT and IT-enabled services, particularly through proprietary technology platforms serving stakeholders in the publishing industry, including authors, publishers and peer reviewers. The Company also provides Software as a Service (SaaS) solutions and develops AI-based IT tools.

The Companys business is focused on technology solutions supporting the scholarly and academic publishing ecosystem. Its platforms are designed to facilitate and streamline publishing-related processes and to support digital workflows.

During FY 2025-26, the Company continued to develop and enhance its digital platforms. The audited financial statements recognise Capital Work-in-Progress of Rs. 745.95 lakhs relating to the development of digital platforms aimed at enhancing research, publishing and journal management processes.

The Company has significant opportunities arising from the growing adoption of digital publishing, SaaS and Al-enabled solutions across the scholarly and academic publishing ecosystem. The expansion of its proprietary technology platforms and digital offerings also provides scope to strengthen its market presence and cater to both domestic and international customers.

The key challenges include rapid technological changes, increasing market competition, cybersecurity and data protection risks, dependence on skilled personnel, and evolving customer requirements within the publishing and technology industry.

The Company primarily operates in a single business segment comprising publishing and IT support services. Accordingly, separate segment reporting is not applicable based on the Companys financial statement disclosures.

During FY 2025-26, the Company continued development and enhancement of its technology platforms. Key projects under development include EAssistant+, Article Review Platform, FlexyPage and JSLD. These projects are intended to enhance research, publishing and journal management processes.

The Company also continued to provide IT and IT-enabled services through its proprietary publishing technology platforms, SaaS solutions and AI-based IT tools.

The Company remains focused on strengthening its technology capabilities and developing digital solutions for the scholarly and academic publishing industry. Continued development of proprietary platforms, SaaS solutions and AI-based tools is expected to support the Companys product and service offerings.

The Company expects its ongoing investments in technology development to contribute to the enhancement of its digital offerings upon completion of the projects under development.

During the year, iCodex participated in the ET Annual Education Summit 2026, held on June 11-12, 2026, in New Delhi, with its senior management representing the Company. The Company showcased its AI-powered research publishing solutions and engaged with academic and institutional stakeholders, strengthening its visibility and positioning in the higher education and research technology ecosystem. The engagements provided opportunities to explore institutional collaborations, expand market reach and drive adoption of iCodex solutions aimed at improving research quality, publication outcomes and responsible AI adoption.

The Company is exposed to risks associated with the technology and publishing services environment, including technological changes, competition, cybersecurity and data protection, availability of skilled personnel, changing customer requirements and the need for continued investment in technology.

Subsequent to the end of the Financial Year, the Company proposed to vary the objects/terms of utilisation of the proceeds raised through its Initial Public Offering ("IPO”) and modify the timeline for utilisation, considering its revised business requirements and objectives. The IPO proceeds were originally proposed to be utilised towards the objects specified in the Prospectus.

The proposed variation and revised utilisation plan were approved by the Board of Directors. Accordingly, the Company issued a Postal Ballot Notice dated July 10, 2026, seeking Members approval through remote e-voting for: (i) variation in the objects/ terms of utilisation of the IPO proceeds and modification of the utilisation timeline; and (ii) ratification of deviation in utilisation of the IPO proceeds towards the objects of the Offer.

Based on the remote e-voting results and the Scrutinizers Report issued by M/s KPRC & Associates, Practicing Company Secretaries (ICSI Unique Identification No. P2013MH030600), both the Special Resolutions were duly approved by the Members by the requisite majority on August 14, 2026.

Pursuant to the aforesaid approvals, the Company shall utilise the unutilised IPO proceeds in accordance with the revised objects and utilisation plan and remains committed to utilising the entire unutilised IPO proceeds on or before March 31, 2027, in compliance with applicable regulatory requirements.

The Company has an internal audit system commensurate with the size and nature of its business. The auditors have considered the reports of the Internal Auditors for the year under audit in determining the nature, timing and extent of audit procedures.

Further, the independent auditors have reported that, in all material respects, the Company has an adequate internal financial controls system with reference to financial statements and that such controls operated effectively as of 31 March 2026.

During FY 2025-26, the Company continued to focus on providing IT and IT-enabled services through its proprietary publishing technology platforms, SaaS solutions and AI-based IT tools.

Revenue from operations increased from Rs. 2,187.75 lakhs in FY 2024-25 to Rs. 2,593.13 lakhs in FY 2025-26. Total revenue increased from Rs. 2,207.89 lakhs to Rs. 2,660.34 lakhs.

Profit before tax declined from Rs. 1,281.79 lakhs to Rs. 1,026.15 lakhs, while profit after tax declined from Rs. 895.66 lakhs to Rs. 709.38 lakhs. Employee benefit expenses increased from Rs. 596.39 lakhs to Rs. 1,141.99 lakhs, while other expenses increased from Rs. 248.33 lakhs to Rs. 380.85 lakhs. Finance costs increased from Rs. 22.17 lakhs to Rs. 36.39 lakhs.

The Company incurred Rs. 745.95 lakhs towards Capital Work-in-Progress for digital platform development during the year. The projects under development include EAssistant+, Article Review Platform, FlexyPage and JSLD.

The following significant changes in key financial ratios have been considered based on the ratio analysis provided in the financial statements and the ratio information furnished for the Annual Report.

During FY 2025-26, the Current Ratio improved by 40.43%, indicating better current asset coverage. However, the Debt Service Coverage Ratio, Return on Equity, Trade Receivables Turnover Ratio, Net Capital Turnover Ratio, Net Profit Ratio and Return on Capital Employed declined significantly, primarily due to higher debt service obligations, expansion of the equity and capital base, slower receivables realisation, increased working capital and lower profitability relative to the expanded capital employed.

The Company recognises the importance of skilled human resources in delivering technology and IT-enabled services and in developing its proprietary platforms. Employee benefit expenses during FY 2025-26 amounted to Rs. 1,141.99 lakhs as compared with Rs. 596.39 lakhs in FY 2024-25.

The financial statements provide details of employee benefit obligations, including provident fund, ESIC, gratuity and leave encashment. As on the closure of the financial year ended 31st March 2026, the Company has a total number of 127 employees.

The financial statements provide a Return on Equity Ratio of 0.19 for FY 2025-26 as compared with 0.65 for FY 2024-25, representing a decline of 71.03%.

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, outlook and other forward-looking matters may contain forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties affecting the Companys business and the environment in which it operates.