Identixweb Ltd Management Discussions

COMPANY OVERVIEW:

Incorporated in 2017, Our Company, as an IT firm, is involved in providing Software as a service (SAAS) - based digital product solutions. Our Company offers E- Commerce Store Development, Web App Development, UI/UX Design, Website development, Customize Software Development, support and maintenance with a primary focus on Shopify application development. The primary goal of our company is to deliver applications online, eliminating the need for installation and maintenance. This approach simplifies software management. Our products include more than 10 Shopify applications that are conversion-optimize and tailored made to meet customer needs. We provide our products and services worldwide across a wide range of sectors.

Our company specializes in Shopify application development, which focuses on creating applications that enhance the functionality and performance of Shopify stores. These application scan range from tools that improve store management and customer engagement to features that optimize sales and streamline operations. Shopify is a leading e-commerce platform that powers over a million businesses worldwide. Its flexibility and scalability make it an ideal choice for businesses of all sizes. However, to truly maximize the potential of a Shopify store, merchants often need custom applications that cater to their specific needs. Our extensive experience and deep understanding of the shopify platform enable us to deliver top-tier Shopify solutions. We are committed to ensure that all our services are executed with the highest level of precision and customer satisfaction. Our dedication to excellence has earned us a reputation for delivering innovative, reliable, and efficient Shopify solutions that help merchants achieve their business goals.

The global economic outlook has shifted markedly as the conflict in the Middle East has generated major disruptions in energy markets. Before the outbreak of the conflict, global activity seemed to be on a firm footing, supported by strong growth in some major economies and better-than expected global trade, amid robust growth in artificial intelligence (AI)-related technology exports and a slight decline in tariff levels. The conflict, however, has led to a marked deterioration in the global outlook, with about two thirds of economies around the world facing weaker growth prospects. Disruptions to flows of energy and other commodity supplies from the Gulf region have led to sharp commodity price increases. Overall, commodity prices are expected to rise by 22 percent in 2026, in contrast to the 7 percent decline expected in January. This reflects a baseline assumption that shipping through the Strait of Hormuz remains severely disrupted through July, with shipping volumes haltingly resuming thereafter, and approaching pre-conflict levels by the end of the year. These disruptions are projected to keep energy prices elevated, with the Brent crude oil price averaging $94/barrel (bbl.) in 2026, an increase of 36 percent over 2025 and more than 50 percent above the January projection. European natural gas prices are anticipated to rise about 30 percent in 2026, on tightened liquefied natural gas (LNG) availability globally. The conflict has also severely disrupted global fertilizer trade, triggering sharp price increases that reflect the Gulfs large share of global fertilizer exports and the surge in natural gas prices, a key input for nitrogen fertilizer.

Sources: Bloomberg; Consensus Economics; Haver Analytics; J.P. Morgan; UN Comtrade; World Bank.

While conflict-related disruptions are weighing on commodity trade flows, an improved trade policy environment and buoyant AI-related investment provide countervailing support to global trade. This is in part attributable to a slight decline in U.S. tariffs following a U.S. Supreme Court ruling that struck down tariffs imposed on international economic emergency grounds, alongside trade liberalization efforts by other countries. The increase in commodity prices has led to a notable resurgence of inflationary pressures. Headline inflation has picked up in both advanced economies and emerging market and developing economies (EMDEs), though the impact was attenuated somewhat by the introduction of fuel subsidies and price caps in some economies. In addition, core inflation has firmed across many EMDEs and in some large economies. As a result, headline inflation expectations have risen broadly.

Sources: Bloomberg; Consensus Economics; Haver Analytics; J.P. Morgan; UN Comtrade; World Bank.

The sharp escalation in geopolitical stress also resulted in elevated volatility across financial markets. Concerns about inflationary pressures have pushed up bond yields as well as breakeven rates of inflation in major advanced economies, and expectations of near-term monetary policy easing have dissipated. In addition, equity markets weakened in the initial weeks of the conflict but many have mostly recovered following the ceasefire, largely as a result of AI optimism. Across EMDEs, equity prices declined, bond yields increased, and currencies came under pressure amid capital outflows, with only a partial recovery for some commodity importers after hostilities eased. In contrast, financial conditions in energy-exporting EMDEs outside the Middle East, and other EMDEs with improved policy frameworks and substantial buffers, have recovered more quickly. In this context, global growth is forecast to slow this year to 2.5 percent, the lowest rate since the COVID-19 pandemic, as higher energy prices, rising inflation, tighter monetary conditions, and weaker trade weigh on activity. The expected deceleration is driven by slowing growth in advanced economies and EMDEs reliant on imported energy, as well as sharply weaker exports in economies in the Middle East directly exposed to the conflict. Global growth is envisaged to pick up to 2.8 percent on average in 2027-28 as energy prices moderate, financial conditions ease, and trade recover Growth in advanced economies is forecast to slow this year, to 1.5 percent, from 1.8 percent in 2025, mainly due to the impact of substantially higher energy prices. The United States?a large oil producer?is proving resilient to the disruptions in global energy markets, with the adverse impacts of the conflict expected to be offset by fiscal easing and continued AI- related investment.

Growth in the euro area is projected to face somewhat greater headwinds due to the regions reliance on natural gas and oil imports, but nevertheless the outlook remains only slightly weaker than January forecasts following better than-anticipated data in late 2025 and a solid start to 2026. Growth in advanced economies is expected to edge up to 1.7 percent in 2027-28 as energy prices decline, inflation pressures subside, monetary conditions ease, and uncertainty recedes. Growth in EMDEs is anticipated to decelerate to 3.6 percent in 2026?0.4 percentage point below January projections. The expected near-term deceleration across EMDEs depends on their degree of exposure to the conflict and its associated disruptions, with growth in those economies directly affected by hostilities tumbling from 3.9 percent in 2025 to close to zero in 2026. Over 2027- 28, lower energy prices, renewed monetary easing, and a recovery in trade are envisaged to underpin a broad- based pickup in activity, with growth rebounding to 4.2 percent over 2027-28. The outlook for low-income countries (LICs) has also deteriorated notably, with the conflict amplifying pre-existing vulnerabilities, including food insecurity, elevated inflation, constrained fiscal space, and weak policy buffer In addition, beyond the human toll, the recent Ebola outbreak may weigh on activity in some large LIC economies.

In per capita terms, growth in EMDEs in 2026 is projected to slow to its weakest pace since the pandemic, with the conflict and lingering disruptions impacting EMDEs to varying degrees. In EMDEs excluding China and India, subdued per capita income growth is expected to lead to nearly a decade of lost income convergence with advanced economies by 2028.

Weaker growth prospects, combined with constrained fiscal space and declining official development assistance (ODA), are stripping away critical buffers for the most vulnerable countries, widening existing development gaps and exacerbating food insecurity and poverty, especially in LICs and economies in fragile and conflict-affected situations (FCS). The outlook is subject to substantial downside risks. In particular, a further surge in energy prices and a sharper acceleration in inflation could weigh on global growth, with the impact potentially amplified by financial market stress. Specifically, if energy supply disruptions prove more severe than currently assumed and are accompanied by substantial financial stress, global growth could fall to just 1.3 percent in 2026, and inflation would rise to 4.4 percent.

Global policy action is essential to confront continued challenges. The conflict in the Middle East is likely to exacerbate food insecurity, warranting coordinated global action to bolster emergency food aid mechanisms and establish humanitarian corridors to prevent further deterioration. Global cooperation is also needed to bolster multilateral trading arrangements, deepen and diversify trade partnerships, and modernize cross-border investment frameworks, alongside efforts to enhance supply chain finance to ease liquidity constraints and reduce nontariff barriers within regional value chains. Additionally, accelerating the energy transition is key to addressing environmental and energy security challenges. At the national level, EMDE central banks will need to carefully calibrate their policy stance to guard against inflation becoming entrenched while limiting the drag on growth, alongside heightening vigilance to financial stability risks amid renewed market volatility and shifts in risk appetite.

EMDEs face a major jobs challenge as 1.2 billion young people are expected to reach working age by 2035. The jobs imperative cuts across the broader policy agenda, particularly at a time when the global economy finds itself at another difficult juncture. Headwinds stemming from conflict related disruptions, higher borrowing costs, heightened uncertainty, and constrained fiscal space, will have a direct bearing on EMDEs ability to increase investment and productivity in job-rich sectors and create employment. These challenges come as the effects of generative AI technologies on Labour markets are still unfolding and likely to be uneven across EMDEs. In response, policy action must be calibrated not only to stabilize the near-term outlook, but also to lay the structural foundations for sustained growth. EMDEs can tackle these challenges through a steadfast commitment to the fundamentals of longterm growth and job creation: greater food and energy security, better foundational infrastructure, practical diffusion of technology, and openness to trade and diversification, all underpinned by fiscal discipline, strong institutions, enabling regulation, investment in human capital, and the catalytic role of private capital mobilization. In particular, countries need to reverse the decline in private investment, which has been on a downward trend since the 2000s. In this context, a comprehensive set of structural reforms could help policymakers boost private investment substantially.

GLOBAL TRADE

Following the U.S. Supreme Court ruling striking down the use of tariffs on international economic emergency grounds, the U.S. administration introduced a temporary 10 percent tariff surcharge under a different law, set to expire in late July. Together with sector and country- specific measures, the U.S. effective tariff rate has declined slightly, to about 12 percent from about 14 percent earlier this year. While trade policy uncertainty remains elevated, several initiatives are expected to support trade growth and diversification. They include recent free trade agreements between the European Union and Mercosur, India, and Australia respectively, and between the United Kingdom and India. They also include unilateral market access initiatives such as Chinas zero-tariff treatment for African countries and the U.S. reauthorization of the African Growth and Opportunity Act. Despite these supporting factors, growth in global goods and services trade is projected to decelerate from 4.8 percent in 2025 to 2.9 percent in 2026, reflecting a reversal of the earlier front-loading activity in anticipation of higher trade barriers; the delayed impact of tariffs; and the effects of the conflict in the Middle East, including disruptions related to the closure of the Strait of Hormuz. Partially offsetting these headwinds, goods trade is envisaged to be supported by continued robust demand for AI-related products. Meanwhile, services trade growth is set to ease, in part reflecting rising travel and transport costs due to higher fuel prices. Compared with previous projections, however, trade growth in 2026 is 0.7 percentage point higher, reflecting continued resilience, strong AI-related activity, lower global tariffs, and recent trade agreements. Global trade growth is then projected to firm to an average of 3.2 percent in 2027-28, broadly in line with global output, as the adverse effects of tariffs and policy uncertainty ease. Tariff rates in effect as of mid- May 2026 are assumed to prevail throughout the forecast period. e trade outlook remains subject to substantial downside risks. A re-escalation of the conflict in the Middle East and increased geopolitical tensions could further disrupt goods trade logistics, including maritime and air transport. A renewed escalation of trade tensions, potentially extending to third countries and involving secondary sanctions?measures targeting firms or countries trading with sanctioned entities?as well as uncertainty around previously concluded trade agreements, could further dampen trade growth prospects.

GLOBAL INFLATION:

Before the onset of the conflict in the Middle East, global headline and core inflation had remained broadly stable, albeit above prepandemic levels and with notable cross- country differences. However, with the interruption of the supply of crucial commodities, particularly oil and natural gas, as well as broader disruptions to global supply chains, global headline inflation picked up, driven by higher input costs and consumer energy prices despite the introduction of fuel subsidies and price caps in some economies. In the United States, this pickup occurred against a backdrop of the pass through of tariff costs to consumer prices (Cavallo, Llamas, and Vazquez 2025). Although the impact of higher energy prices on core inflation has been subdued so far, underlying price pressures persist, with about one-fourth of economies seeing accelerating core prices amid some impact on producer costs and transportation prices. This increase is a notable challenge for a relatively high share of economies, particularly EMDEs, where core inflation is already elevated relative to headline targets modest, suggesting that headline inflation is expected to moderate due to abating energy price pressures as the conflict winds down and central banks keep monetary policy more restrictive than previously envisaged. The concentration of higher inflation projections in the near term suggests that survey respondents anticipate conflict-driven inflationary pressures to be temporary, indicating that overall expectations remain well anchored. In all, global headline inflation is projected to pick up to 4 percent this year, with advanced economies and EMDEs seeing headline inflation rise due to increases in energy costs. Global inflation is expected to moderate to 3.1 percent next year as the average crude price declines from $94/bbl. in 2026 to $76/bbl. in 2027, consistent with the baseline assumption that the current conflict in the Middle East subsides, energy supplies through the Strait of Hormuz resume after July, and energy production curtailed earlier in the conflict gradually recover Core inflation is assumed to be relatively stable amid anchored medium-term inflation expectations. Nevertheless, the inflation outlook remains highly uncertain because of the intensity and duration of the commodity market disruption.

Surveys of professional forecasters indicate that CPI inflation is projected to edge up in 2026 across advanced economies and EMDEs on the back of higher energy prices. In contrast, the increase for 2027 has been

INDIAN ECONOMIC OUTLOOK:

Indias economic momentum remains strong, underpinned by resilient domestic demand and sustained macroeconomic stability. In FY 2025-26, Real GDP (GDP at Constant Prices) is estimated to reach Rs. 3,22,58,000 crore, rising from Rs. 2,99,89,000 crore in FY 2024-25, reflecting a robust growth of 7.6%. At current prices, Nominal GDP is projected to reach Rs. 3.45.47.000 crore (US$ 3.91 trillion) in FY 2025-26, from Rs. 3,18,07,000 crore (US$ 3.60 trillion) in the previous year, registering a growth of 8.6%. On the production side, Real Gross Value Added (GVA) is estimated at Rs. 2,94,40,000 crore, up from Rs. 2,73,36,000 crore in FY 2024-25, indicating a growth of 7.7%, while Nominal GVA is expected to expand to Rs. 3,13,61,000 crore (US$ 3.55 trillion) from Rs. 2,88,54,000 crore (US$ 3.26 trillion), marking a growth of 8.7%. In Q3 FY26, Real GDP is estimated at Rs. 84,54,000 crores against Rs.

78.41.000 crores in Q3 FY25, while Nominal GDP rose to Rs. 90,91,000 crores from Rs. 83,46,000 crores, showing continued quarterly momentum. Collectively, these trends highlight Indias position as one of the fastest- growing major economies, supported by broad-based expansion across sectors.

Further, India is projected to reach a GDP of Rs. 4.26.45.000 crore (US$ 5 trillion) by 2027 and is on course to surpass Germany by 2028. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

Market Overview

India is home to 126 unicorns, with six new startups achieving unicorn status in 2025. Indias current account deficit moderated in Q2 FY 2025-26 (July- September), supported by a lower merchandise trade deficit. The deficit stood at Rs. 1.02 lakh crore (US$ 11.7 billion), or 1.3% of GDP, compared with Rs. 1.73 lakh crore (US$ 20.8 billion), or 2.2% of GDP, in the same quarter last year.

The merchandise trade deficit increased to Rs. 8.34 lakh crore (US$ 93.6 billion) from Rs. 6.70 lakh crore (US$ 79.3 billion) in Q3 FY25, while the services surplus improved to Rs. 5.12 lakh crore (US$ 57.5 billion) from Rs. 4.32 lakh crore (US$ 51.2 billion) during the same period.

Recent Developments

India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With Indias economy showing resilient growth, supported by strong domestic demand, policy reforms, and a healthy investment pipeline, several new projects and developments are underway across key sector According to World Bank, India must continue to prioritise lowering inequality while also putting growth-oriented policies into place to boost the economy. In view of this, there have been some developments that have taken place in the recent past. Some of them are mentioned below.

> On the FDI front, according to the Department for Promotion of Industry and Internal Trade (DPIIT), Indias cumulative FDI inflow stood at US$ 1.14 trillion between April 2000-December 2025; with major share of FDI equity inflow, coming from Singapore at Rs. 13,72,320 crore (US$ 192.53 billion) with a total share of 25%, followed by Mauritius at Rs. 11,34,884 crore (US$ 185.02 billion) with 24%, the USA at Rs. 5,60,990 crore (US$ 78.45 billion) with 10%, the Netherlands at Rs. 3,82,995 crore (US$ 55.60 billion) with 7%, and Japan at Rs. 3,11,507 crore (US$ 47.59 billion) with 6%.

> As of March 27, 2026, Indias foreign exchange reserves stood at Rs. 65,20,745 crore (US$ 688.05 billion).

> In Q1 CY2026 (January-March), India recorded 316 Private Equity (PE)-Venture Capital (VC) deals valued at Rs. 82,660 crore (US$ 9.1 billion), reflecting continued investor participation despite global geopolitical uncertainties and temporary supply chain disruptions linked to the ongoing West Asia conflict. In Q1 CY2025, PE-VC investments stood at Rs. 1,01,320 crore (US$ 11.7 billion), highlighting the strong base of investment activity in the previous year. In March 2026 alone, investments were valued at Rs. 35,310 crore (US$ 3.8 billion), compared with Rs. 40,660 crore (US$ 4.7 billion) in March 2025.

> During FY 2025-26, Foreign Portfolio Investor (FPI) activity in India reflected portfolio rebalancing and selective capital allocation across asset classes amid evolving global market conditions. While investors adopted a calibrated approach towards equity markets, debt instruments continued to attract strong inflows of Rs. 25,807 crore (US$ 2.92 billion), supported by stable macroeconomic fundamentals, policy continuity and Indias improving bond market attractiveness. FPIs also channelled Rs. 2,699 crore (US$ 0.31 billion) into mutual fund schemes, indicating sustained preference for diversified and professionally managed market exposure. Alternative Investment Funds (AIFs) also recorded inflows, while cumulative FPI investments in India stood at Rs. 14,84,403 crore (US$ 168.00 billion) by the end of FY 2025-26, underlining long-term foreign investor confidence in Indias growth story. Domestic Institutional Investors (DIIs) continued to play a stabilising role in the equity cash market during FY 2025-26 (April-December 2025), recording net purchases of around Rs. 5.99 lakh crore (US$ 66.55 billion), with strong participation from mutual funds, insurance companies and pension funds supporting market resilience.

> Indias manufacturing sector remained in expansionary territory in March 2026, with the seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) at 53.9, following a strong 56.9 in February 2026. The index continued to stay above the neutral 50-mark, reflecting sustained growth in overall business conditions and healthy momentum across the manufacturing sector. New orders and output continued to rise, supported by steady domestic demand and inventory building, while firms also increased employment and input purchases to strengthen contingency stocks.

> Indias consumer price inflation remained well- anchored in March 2026, reflecting a stable price environment across the economy. Headline inflation, based on the All-India Consumer Price Index (CPI), stood at 3.40% year-on-year, compared with 3.21% in February 2026, indicating manageable price pressures across both rural and urban regions. Rural inflation was recorded at 3.63%, while urban inflation stood at 3.11% during the month.

> Indias GST collections continued to demonstrate strong revenue resilience, supported by steady economic activity and improved compliance levels. Total Net GST revenue in March 2026 stood at Rs. 1.78 lakh crore (US$ 20.14 billion), registering a year-on-year growth of 8.2% compared with Rs. 1.64 lakh crore (US$ 18.49 billion) in March 2025. On a cumulative basis, yearly net GST collections reached Rs. 19.35 lakh crore (US$ 219.03 billion) in FY 2025-26, reflecting a year-on-year growth of 7.1% over Rs. 18.07 lakh crore (US$ 204.46 billion) in FY 2024-25.

> Indias aviation sector continued to witness steady growth in passenger traffic during FY 2025-26 (April-March). Total passengers handled stood at 420.09 million, compared with 412.09 million in FY 2024-25, registering a growth of 1.9%.

> The government is focusing on renewable energy sources and has achieved a major clean energy milestone by generating 50% of its power from renewable sources, five years ahead of its 2030 target. India is committed to achieving its Net Zero Emissions ambition by 2070 through a five-pronged strategy, ‘Panchamrit. Moreover, India ranked 3rd in the renewable energy country attractiveness index.

> India secured 38th position out of 139 economies in the Global Innovation Index 2025. India rose from 81st position in 2015 to 38th position in 2024. India ranks in 3rd position in the global number of scientific publications.

> Indias industrial activity continued to witness steady expansion in March 2026, with the Index of Industrial Production (IIP) growing by 4.1% year- on-year, supported by sustained momentum across key sector The manufacturing sector recorded a 4.3% increase, while mining expanded by 5.5%, reflecting strength in core industrial segments. Electricity generation also remained positive at 0.8%, contributing to overall industrial performance. The IIP index rose to 173.2 in March 2026, up from 166.3 in March 2025, indicating continued expansion in Indias industrial base. Within manufacturing, 14 out of 23 industry groups recorded growth, with key contributors including basic metals, motor vehicles and machinery & equipment, highlighting broad-based industrial activity.

> The government has set a calibrated wheat procurement target of 343.35 lakh metric tonnes (LMT) for the 2026-27 rabi marketing season, ensuring efficient stock management and smooth market operations. As per the latest data, total wheat procurement has reached 31.87 lakh metric tonnes (LMT) as of end-April 2026, reflecting the ongoing progress of procurement across key producing states.

(Source: https://www.ibef.org/economy/indian- economy-overview)

INDUSTRY OVERVIEW

The IT & BPM sector has become one of the strongest pillars of Indias economy, contributing significantly to growth, employment, and public welfare. In April 2025, the industry recorded 16% YoY growth in hiring, driven by the rising adoption of artificial intelligence, cloud modernisation, and the expansion of Global Capability Centres (GCCs). The IndiaAI Mission receives an allocation of more than Rs. 10,300 crore (US$ 1.19 billion) over five years, supported by the deployment of 38,000 GPUs. The tech and AI ecosystem employs 6 million people.

With over 76 crore citizens now connected to the internet, India is home to one of the worlds largest online populations while offering some of the lowest access costs. This has been supported by the Digital India Programme, which has expanded digital infrastructure and improved accessibility across the country. Together with growing private sector innovation and widespread adoption of digital applications, India is entering the next phase of its IT revolution. Reflecting this shift, Indias rankings improved seven places to the 38th position in the 2024 edition of the Global Innovation Index (GII), highlighting its rising global competitiveness in technology and innovation. Indias Global Capability Centre workforce is projected to rise to 3.46 million by 2030, supported by rapid adoption of artificial intelligence across roles.

Market Size

As per NASSCOM, Indias IT industry revenue has expanded from US$ 181 billion in FY19, including US$ 136 billion in exports, to an estimated US$ 297 billion in FY25, with exports contributing US$ 233 billion. Indias IT exports rose 16.50% in FY25 to US$ 233 billion from US$ 200 billion in FY24, with STPI-registered units contributing Rs. 10.64 lakh crore (US$ 123.05 billion), according to MeitY citing Nasscom. Export of IT services remained the largest contributor, accounting for more than 65% of total IT exports. In FY25, Indias top five software services export destinations were the United States (US$ 117.43 billion, 50.33%), Europe (US$ 73.26 billion, 31.40%) including the United Kingdom (US$ 34.41 billion, 15,.50%), Asia (US$ 12.21 billion, 5.23%), Australia & New Zealand (US$ 5.33 billion, 2.28%) and Canada (US$ 2.88 billion, 1.23%). Asia, Australia & New Zealand, and Canada together accounted for about 8.75%. Within the export mix, BPM, engineering and R&D (ER&D), and software products contributed 26% and 8% respectively in FY25.

Indias IT growth is being increasingly driven by new hubs beyond traditional metros. Non-metro cities such as Udaipur, Vizag, Coimbatore, and Nagpur recorded over 50% IT hiring growth in H1 2025, significantly higher than Bengaluru and NCR at 12-15%. This reflects a structural shift as tier-II and tier-III hubs attract demand in AI, cloud, and cybersecurity while offering cost savings of around 30%. Mid-tier IT companies also reported stronger growth than their larger counterparts in FY25, highlighting their agility in navigating uncertain global conditions, although sustaining this momentum in FY26 remains a challenge. The domestic market is also expanding steadily. Indias domestic IT & Business Services market reached US$ 64 billion in 2025, growing 18.52% YoY, with IT Services alone accounting for 71.17% of the market.

Indias IT spending is expected to reach US$ 176.3 billion ( Rs. 15,50,734 crore) in 2026, driven by a boom in data-centre expansion and AI-enabled software investments. Indian software product industry is projected to reach US$ 100 billion by 2025 as companies expand globally and strengthen delivery

centres. The system infrastructure software market is forecast to reach US$ 20.8 billion by 2030, growing at a CAGR of 9.2% between 2023 and 2030. In parallel, the data annotation market, valued at US$ 250 million in FY20, is expected to surge to US$ 7 billion by 2030, driven by accelerated domestic demand for AI, even though the US continues to account for the bulk of current demand.

India has emerged as a leading global data-centre market, with Mumbai offering the second-lowest construction cost worldwide at Rs. 589 (US$ 6.64) per watt and benefiting from low power tariffs. Indias data-centre capacity is projected to double by 2027 and could increase five-fold by 2030, driven by strong demand for cloud and AI infrastructure. Indias data center market is poised for significant expansion, with its value projected to more than double from US$ 10 billion in 2025 to US$ 22 billion by 2030.

Indias DeepTech sector is forecast to expand 2.5-fold over the next five years, attaining US$ 27 to US$ 33 billion by 2030, driven by advancements in defence innovation and humanoid applications.

Government Initiatives

Some of the major initiatives taken by the government to promote the IT and ITeS sector in India are as follows:

• Emphasising the priority on digital infrastructure, investments totalling approximately US$ 70 billion are already in progress in India, alongside announcements of a further US$ 90 billion. The 2026-27 Budget proposes a tax holiday until 2047 for foreign companies delivering cloud services to global customers via data centres located in India.

• The Union Budget 2025-26 allocated Rs. 20,000 crore (US$ 2.31 billion) for R&D, AI, geospatial initiatives and Atal Tinkering Labs to strengthen the innovation ecosystem and support private-sector- led research.

• The 2025-26 Budget allocates Rs. 782 crore (US$ 88.90 million) for cybersecurity measures to protect digital public infrastructure.

• The India AI Mission alone has been allocated Rs. 2,000 crore (US$ 236.4 million) in 2025-26, a significant leap from Rs. 173 crore (US$ 8.6 million) in the previous year.

• The Government has initiated a project AIRAWAT for providing a common compute platform for AI research and knowledge assimilation.

• AIKosh develops extensive datasets for AI model training, drawing from both governmental and non- governmental sources. The platform encompasses more than 5,500 datasets and 251 AI models spanning 20 sector.

• The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, proposes an allocation of Rs. 1,16,342 crore (US$ 13.98 billion) for IT and Telecom sector.

• In March 2024, the Government of India launched the IndiaAI Mission with an outlay of Rs 10,372 crore (US$ 1.25 billion) to foster the development of the nations overall AI ecosystem. Within less than 24 months, the IndiaAI Mission has established a solid foundation for advancing the countrys AI ecosystem.

• The government prioritizes cybersecurity, hyper- scale computing, AI, and blockchain. With data costs at Rs. 10/GB ($0.12/GB), India ranks among the worlds cheapest.

• Cabinet approved PLI Scheme - 2.0 for IT Hardware with a budgetary outlay of Rs. 17,000 crore (US$ 2.06 billion).

• The government introduced the STP Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including the export of professional services using communication links or physical media.

• The Department of Telecom, Government of India and Ministry of Communications, Government of Japan, signed an MoU to enhance cooperation in areas of 5G technologies, telecom security and submarine optical fibre cable systems.

Growth Drivers and Opportunities:

1. Combat Cyber-security

The Data Security Council of India (DSCI) - National Center of Excellence for Cyber Security Technology Development (NCoE) and Chitkara University have collaborated to undertake joint programmes on cyber security and privacy.

• The Government of India has strengthened its cyber security framework through CERTIn, NCIIPC, NCCC, Cyber Swachhta Kendra, and the Digital Personal Data Protection Act, 2023, alongside 109 nationwide cyber security drills and training of 12,014 officials in 2024 to combat rising cyber threats.

• The 2025-26 Budget allocates Rs. 782 crore (US$ 88.90 million) for cybersecurity measures to protect digital public infrastructure.

2. Talent pool

India will need over 30 million digitally skilled professionals by 2026.

• According to the Stanford AI Index Report 2025, India leads the world in AI talent acquisition, boasting an annual hiring rate of approximately 33%. It ranks among the top countries globally in AI skill penetration, with AI talent concentration having grown more than threefold since 2016.

• Indias artificial intelligence market was set to triple to US$ 17 billion by 2027, Emerging as one of the fastest-growing AI economies globally, said Boston Consulting Group on June 11,2025.

3. Public cloud market

The Indian public cloud services market is projected to reach US$ 13 billion by 2026, propelled chiefly by sectors such as BFSI, manufacturing, government, software, and media.

• Comparing to prepandemic level from FY19, the cloud deals in FY23 have grown by more than 4 times. Clouds potential is boundless, and it forms a crucial foundation for successful digital transformation.

4. Infrastructure

The system infrastructure software market in India is expected to reach a projected revenue of Rs. 178.0 million (US$ 20,823.6 million) by 2030. A compound annual growth rate of 9.2% is expected of India system infrastructure software market from 2023-30. • India is set to invest US$ 200 billion in AI infrastructure. OpenAI has partnered with the Tata Group to develop 100 megawatts of AI capacity, with ambitions to expand to 1 gigawatt.

(Source: https://www.ibef.org/economy/indian-economy-overview)

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE & DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The company is primarily engaged in the business of IT and IT enabled services, which constitute a single reportable segment in accordance with AS 17 - “Segment Reporting”.

RISK AND CONCERNS

The Company is exposed to various risks and uncertainties which may adversely impact its performance. The Companys future growth prospects and cash flow generation could be materially impacted by any of these risks or opportunities. The Companys business performance may be impacted by various internal and external risks, including changes in technology, cybersecurity threats, data privacy and regulatory requirements, dependence on third-party platforms such as Shopify, fluctuations in foreign exchange rates due to international operations, changing global economic conditions, talent acquisition and retention challenges, and increasing competition from domestic as well as global technology companies. The Company continuously monitors these risks and has implemented appropriate policies, internal controls and risk management practices to identify, assess and mitigate potential business risks.

WEAKNESSES

Despite steady growth and a strong service portfolio, the Company faces certain challenges in the areas of resource allocation and scalability. At times, limited availability of skilled professionals and competing project priorities may result in suboptimal utilization of resources. Additionally, as the demand for our products and services continues to increase, our current infrastructure and operational framework require further strengthening to ensure seamless scalability. Addressing these challenges will be critical to support sustainable growth and meet the evolving needs of our global clientele.

OPPORTUNITIES AND THREATS

The growing adoption of digital transformation, cloud computing, Software-as-a-Service (SaaS), artificial intelligence and e-commerce presents significant growth opportunities for the Company. Increasing demand for Shopify applications, customized software solutions and web and mobile application development is expected to support business expansion and recurring revenue.

However, the Company operates in a highly competitive and rapidly evolving technology industry. Continuous technological advancements, cybersecurity risks, changing customer expectations, dependence on third-party platforms and the need to attract and retain skilled professionals remain key challenges. The Company continues to focus on innovation, product enhancement and operational excellence to effectively address these challenges.

FINANCIAL PERFORMANCE

PARTICULARS	Standalone		Consolidated
	F.Y. 2025-26	F.Y. 2024-25	F.Y. 2025-26	F.Y. 2024-25
Revenue from Operations	1,108.68	853.38	1,304.74	909.31
Add: Other Income	98.50	45.80	56.24	12.13
Total Income	1,207.18	899.19	1,360.98	921.44
Less: Total Expenses before Depreciation, Finance Cost and Tax	328.57	245.24	554.84	316.24
Profit before Depreciation, Finance Cost and Tax	878.61	653.95	806.14	605.21
Less: Depreciation and amortization expense	58.69	78.95	116.89	108.81
Less: Finance Cost	0.00	0.00	0.36	0.00
Profit Before Extraordinary & Exceptional Items and Tax	819.92	575.00	688.88	496.41
Add: Extraordinary & Exceptional Items	0.00	4.17	0.00	4.17
Net Profit Before Tax	819.92	579.17	688.88	500.58
Less: Tax expenses	219.01	167.91	219.01	167.91
Net Profit After Tax	600.92	411.26	469.88	332.67

Financial Performance - On Standalone Basis

During the year under review, the revenue from operation of the Company stood at Rs. 1,108.68 Lakhs as against that of Rs. 853.38 Lakhs for previous year. Revenue from operation of the Company was increased by 29.92% over previous year. The primary reason for increase revenue was increase in supply of services. Our Company offers a comprehensive range of technology and development services beyond Shopify, catering to diverse client requirements across global markets.

Profit before Tax for the financial year 2025-26 stood at Rs. 819.92 Lakhs as against Profit before Tax of Rs. 579.17 Lakhs for the financial year 2024-25. The primary reason for increase in Profit before Tax was increase in revenue.

The net profit of Rs. 600.92 Lakhs for the financial year 2025-26 as against the net profit of Rs. 411.26 Lakhs for the financial year 2024-25.

Financial Performance - On Consolidated Basis

During the year under review, the total revenue of the Company was stood at Rs. 1,304.74 Lakhs as against that of Rs. 909.31 Lakhs for previous year. Revenue from operation of the Company was increased by 43.48% over previous year. The primary reason for increase revenue was increase in supply of services.

Profit before Tax for the financial year 2025-26 stood at Rs. 688.88 Lakhs as against Profit before Tax of Rs. 500.58 Lakhs for the financial year 2024-25. The primary reason for increase in Profit before Tax was increase in revenue.

The net Profit of the Company (after adjustment of minority interest) was Rs. 535.38 Lakhs for the financial year 2025-26 as against the net Profit of Rs. 371.98 Lakhs for the financial year 2024-25.

CHANGES IN KEY FINANCIAL RATIOS

PARTICULARS	Standalone		Consolidated
	F.Y. 2025-26	F.Y. 2024-25	F.Y. 2025-26	F.Y. 2024-25
Debtors Turnover Ratio (times)	5.20	5.47	6.12	3.47
Current Ratio (times)	4.54	4.41	3.77	3.97
Debt Equity Ratio (times)	NA	0.02	NA	0.03
Return on Capital Employed (%)	23.00%	39.26%	25.12%	25.94%
Return on Equity Ratio (%)	17.02%	28.41%	16.40%	28.35%
Net Profit Ratio (%)	54.20%	48.20%	41.03%	36.59%

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources.

Your Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the Companys internal controls over financial reporting was observed.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels. The Company acknowledges that its principal asset is its employees. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31,2026, the Company had total 72 full time employees. The industrial relations have remained harmonious throughout the year.

ACCOUNTING TREATMENT

The company has followed accounting treatment as prescribed in Accounting Standards (AS) applicable to the company.

CAUTIONARY NOTE

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized.

The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.