Infinity Infoway Ltd Management Discussions

^Creating Value Through Technology, Innovation and Customer-Centric Solutions"

Company Overview

Infinity Infoway Limited is engaged in the business of software development, ERP solutions, examination management systems, SaaS platforms and IT enabled services. The Company serves educational institutions, enterprises and government-related organizations through technology-driven solutions designed to improve operational efficiency, governance and digital transformation.

FY 2025-26 was a transformational year for Infinity Infoway Limited. The Company delivered strong growth across its software solutions, ERP platforms, examination management systems and IT-enabled services business. Supported by increasing digital adoption across educational institutions and enterprises, the Company achieved significant growth in revenue and profitability while continuing to strengthen its technology capabilities and customer relationships.

GLOBAL TECHNOLOGY AND ITES INDUSTRY OVERVIEW

The global technology industry continued to demonstrate resilience during FY 2025-26 despite economic uncertainties, geopolitical developments and evolving regulatory frameworks. Digital transformation remains a strategic priority across industries, driving investments in enterprise software, cloud infrastructure, artificial intelligence (AI), cybersecurity, data analytics and automation technologies.

According to Gartner, worldwide IT spending is expected to reach approximately USD 6.15 trillion in 2026, representing a growth of approximately 10.8% over the previous year. Software spending is projected to grow by 14.7% while IT Services spending is expected to increase by 8.7%, reflecting sustained demand for enterprise applications, digital transformation initiatives and technology-enabled business services. The increasing adoption of Artificial Intelligence, cloud computing and automation solutions continues to reshape the global technology landscape and create new growth opportunities for software and IT-enabled service providers.

Global Technology Industry Snapshot

Particulars	FY 2024-25	FY 2025-26	Growth
Global IT Spending	USD 5.55 Trillion	USD 6.15 Trillion	10.80%
Global Software Spending	USD 1.25 Trillion	USD 1.43 Trillion	14.70%
Global IT Services Spending	USD 1.72 Trillion	USD 1.87 Trillion	8.70%
Global Data Centre Spending	USD 496 Billion	USD 653 Billion	31.70%

The growing convergence of software, artificial intelligence, cloud computing and managed services is transforming traditional IT services into integrated digital transformation ecosystems. Organizations are increasingly seeking technology partners capable of delivering end-to-end solutions that combine software products, implementation services, managed services and ongoing digital support.

GLOBAL EDTECH MARKET OUTLOOK

The global Education Technology (EdTech) industry continues to experience strong growth, driven by increasing digitalization of educational institutions, growing adoption of online learning platforms, demand for data-driven academic administration and the integration of advanced technologies into educational ecosystems.

According to industry estimates, the global EdTech market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 15.4%, reaching USD 299.7 billion by 2028. The growth is being fueled by increasing investments in digital learning infrastructure, cloud-based education platforms, Artificial Intelligence (AI), learning analytics, student engagement technologies and technology-enabled institutional management systems.

Educational institutions worldwide are increasingly adopting integrated digital solutions to manage admissions, academics, examinations, finance, communication and compliance requirements through centralized platforms. The growing emphasis on operational efficiency, personalized learning experiences and secure digital examination processes continues to accelerate technology adoption across schools, colleges, universities and professional learning institutions.

The expansion of digital education ecosystems presents significant opportunities for technology providers offering Education ERP solutions, examination management systems, learning platforms and institution-wide digital transformation services. As educational institutions continue to modernize their operational and academic infrastructure, demand for scalable, secure and integrated education technology solutions is expected to remain strong in the coming years.

Against this backdrop, Infinity Infoway Limited is well positioned to benefit from the growing adoption of digital education technologies through its Education ERP platform, examination management solutions and technology-enabled institutional automation offerings.

INDIAN IT AND ITES INDUSTRY OVERVIEW

India continues to be one of the worlds fastest-growing digital economies and a global hub for Information Technology and IT Enabled Services (ITES). Increasing enterprise digitization, cloud adoption, automation initiatives and government-led digital transformation programs are contributing significantly to industry growth.

According to Gartner, Indias IT spending is expected to exceed USD 176 billion in 2026, reflecting growth of approximately 10.6% over the previous year. Software spending is expected to grow by 17.6% and IT services spending by 11.1%, highlighting increasing investments in enterprise modernization, cloud infrastructure, cybersecurity and Al-enabled solutions.

Industry body NASSCOM estimates that the Indian technology industry crossed the USD 300 billion milestone during FY 2025-26, reinforcing Indias position as a global technology and innovation hub. The sector continues to benefit from strong demand for digital transformation, enterprise software, managed services, cloud migration and Al-driven solutions.

Indian Technology Industry Snapshot

Particulars	FY 2024-25	FY 2025-26	Growth
India IT Spending	USD Billion 159	USD 176 Billion	10.60%
Software Spending	USD Billion 21	USD 24.7 Billion	17.60%
IT Services Spending	USD Billion 31.8	USD 35.4 Billion	11.10%
Indian Technology Industry Revenue	USD Billion 297	USD 315 Billion	6.10%

Against this backdrop of increasing digital transformation and technology adoption, Infinity Infoway Limited continues to strengthen its position through its diversified portfolio of Education ERP, Industrial ERP, Examination Management Solutions, SaaS platforms and IT Enabled Services.

INDIAN ERP MARKET OUTLOOK

The Enterprise Resource Planning (ERP) software market in India continues to witness robust growth, driven by increasing digital transformation initiatives, automation requirements and the growing adoption of integrated business management solutions across educational institutions, manufacturing companies, service organizations and government entities.

According to industry estimates, the Indian ERP software market is projected to grow from approximately USD 0.71 billion in 2024 to USD 1.04 billion by 2028, representing a Compound Annual Growth Rate (CAGR) of approximately 10.01%. The growth is being supported by increasing investments in cloud-based technologies, business process automation, data-driven decision making, Artificial Intelligence (AI), regulatory compliance requirements and enterprise modernization initiatives.

Organizations are increasingly transitioning from traditional standalone systems to integrated ERP platforms that provide real-time visibility, operational efficiency, enhanced governance and improved resource utilization. The growing preference for Software-as-a-Service (SaaS)-based ERP solutions, cloud deployment models and mobile-enabled applications is further accelerating market expansion.

The education sector is also witnessing significant adoption of ERP solutions as institutions increasingly focus on digital campus management, student lifecycle management, examination administration, finance, human resources and regulatory compliance. Similarly, enterprises across manufacturing,

trading and service sectors continue to invest in ERP modernization to improve productivity, streamline operations and strengthen business intelligence capabilities.

Against this favorable industry backdrop, Infinity Infoway Limited remains well positioned to capitalize on the growing demand for ERP solutions through its comprehensive portfolio of Education ERP and Industrial ERP platforms, supported by continuous innovation, cloud-enabled technologies and customer-centric digital transformation solutions.

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Information Technology (IT) and Information Technology Enabled Services (ITES) industry continues to witness significant growth driven by increasing digital transformation initiatives across education, enterprise and government sectors. The rapid adoption of cloud computing, artificial intelligence, automation, cybersecurity solutions and Software-as-a-Service (SaaS) platforms is reshaping the manner in which organizations manage operations and deliver services.

India continues to strengthen its position as a global technology hub supported by government initiatives such as Digital India, increasing internet penetration, digital governance programs and rising investments in technology infrastructure. Educational institutions and enterprises are increasingly adopting integrated digital platforms to enhance operational efficiency, improve stakeholder engagement and ensure regulatory compliance.

The Company operates in the areas as:

The continued shift toward digital-first operations, cloud-enabled ecosystems and technology-driven decision-making is expected to create substantial opportunities for technology solution providers. Increasing adoption of digital governance frameworks, automation platforms, secure examination systems and integrated enterprise applications is expected to further accelerate demand for innovative and scalable technology solutions.

Subsequent to the close of the financial year, on 28 April 2026, the Company was granted a patent relating to its proprietary ZeroTouch Question Paper Delivery System. The grant of the patent strengthens the Companys intellectual property portfolio and is expected to enhance its competitive positioning in the secure examination management solutions segment. The management believes that the patented technology will support future growth opportunities and reinforce the Companys focus on innovation-driven product development.

!>r. No.	Opportunities	Description
1	Growing Digital Transformation Across Education Sector	Increasing adoption of digital governance, online learning ecosystems, automation of administrative functions and regulatory compliance requirements are creating significant opportunities for Education ERP and campus management solutions.
2	Expansion of ERP Adoption Among Enterprises	The growing need for operational efficiency, data-driven decision making and process automation is driving demand for Industrial ERP solutions across manufacturing and service sectors.
3	Increasing Demand for Secure Examination Infrastructure	Educational institutions and examination authorities are increasingly adopting secure digital examination systems, creating growth opportunities for the Companys ZeroTouch Question Paper Delivery System and examination management solutions.
4	Growth of SaaS and Subscription-Based Business Models	Organizations are increasingly preferring cloud-based subscription services, resulting in opportunities for recurring revenue generation and long-term customer retention.
5	Government-Led Digital Initiatives	Programs sucn as Digital India, educational modernization initiatives and technology-enabled governance continue to support the adoption of digital platforms and enterprise software solutions.
6	Artificial Intelligence and Automation	Growing adoption of Artificial Intelligence, workflow automation and data analytics presents opportunities for product enhancement, operational efficiency and development of next-generation technology solutions.
7	Expansion of IT Enabled Services (ITES)	The increasing requirement for implementation, maintenance, managed services, cloud deployment and technical support services provides opportunities for expanding the Companys ITES business vertical.
8	Cybersecurity and Data Protection Requirements	Organizations are investing heavily in secure digital infrastructure, creating opportunities for technology providers offering secure and compliant software platforms.

 

Sr. No.	Threats	Description
1	Rapid Technological Changes	Continuous technological advancements may require substantial investments in product development, innovation and upgradation of existing solutions.
2	Intense Industry Competition	The software and IT services industry is highly competitive, with the presence of domestic and international players offering similar products and services.
3	Cybersecurity Risks	Increasing cyber threats, data breaches and information security challenges may adversely affect business operations and customer confidence.
4	Talent Acquisition and Retention	The technology sector faces intense competition for skilled professionals, which may impact talent retention and increase employee costs.
5	Regulatory and Compliance Changes	Changes in laws, regulations, data protection requirements and industry standards may result in increased compliance obligations and operational costs.
6	Dependence on Institutional and Enterprise Spending	Delays in technology spending, procurement cycles or budgetary constraints among educational institutions and enterprises may affect business growth.
7	Pricing Pressure	Growing competition and changing customer expectations may lead to pressure on pricing and profit margins.
8	Economic and Market Uncertainties	Macroeconomic challenges, inflationary pressures and geopolitical developments may influence customer spending patterns and investment decisions.

D) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company primarily operates in the Information Technology (IT) and Information Technology Enabled Services (ITES) sector and derives its revenue from software products, enterprise solutions, implementation services, subscription-based offerings and technology support services. During the year, the Companys diversified product portfolio continued to support business growth across multiple operating segments.

Revenue Mix Across Product Segment

(Rs. In lacs)

Business Vertical	FY26 Revenue	FY25 Revenue	Growth %
Education ERP	1274.11	677.62	88.03
Industrial ERP	861.55	413.69	108.24
Online Examination System	238.27	226.76	5.08
Digital learning	3.1	1.17	164.96
Total	2377.03	1319.23	80.19

The Companys diversified technology portfolio, customer-centric approach and focus on innovation continue to support sustainable growth across all business segments.

E) OUTLOOK

The outlook for the Company remains positive considering the increasing adoption of digital technologies across educational institutions, enterprises and government organizations.

The management expects sustained demand for Education ERP, Industrial ERP, examination management solutions and digital workflow automation platforms. Educational institutions continue to focus on technology-enabled administration and secure examination ecosystems, while enterprises are increasingly investing in ERP modernization and digital transformation initiatives.

In line with these market opportunities, the Company has identified the following strategic priorities to strengthen its market position and drive sustainable growth:

Strategic Initiative	Business Objective	Expected Growth Impact
Expansion of Education ERP Solutions	Expand deployment across schools, colleges, universities, coaching institutions and educational groups through integrated digital campus management solutions.	Increased customer acquisition, higher platform adoption and long-term recurring revenue generation.

f) RISKS AND CONCERNS

The Company operates in a dynamic technology-driven environment and is exposed to various business, operational and market-related risks. To address these challenges, the Company has established appropriate risk management practices, internal control systems and information security frameworks designed to identify, assess, monitor and mitigate risks on an ongoing basis.

effective. The framework provides reasonable assurance regarding the orderly and efficient conduct of business operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy of accounting records and timely preparation of reliable financial information.

(h) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year 2025-26, The successful listing of the Companys equity shares has further strengthened its corporate profile, enhanced stakeholder confidence and provided a platform for pursuing future growth opportunities, the Company delivered a strong financial and operational performance driven by increased adoption of its software products, ERP solutions, examination management systems and IT enabled services.

Revenue from Operations on a standalone basis increased to Rs.2,377.03 Lakhs as compared to Rs.1,319.23 Lakhs in the previous year, registering a growth of 80.19%. Total Revenue increased to Rs.2,446.33 Lakhs from Rs.1,348.49 Lakhs in FY 2024-25, reflecting robust business expansion and higher customer acquisition across key business segments.

The Companys operational performance was supported by continued demand for Education ERP solutions, Industrial ERP platforms, Examination Management Systems, ZeroTouch Question Paper Delivery System and IT Enabled Services. Expansion of recurring subscription revenues and implementation projects also contributed positively to revenue growth.

Employee Benefit Expenses increased from Rs.342.91 Lakhs to Rs.546.25 Lakhs in line with business expansion, strengthening of the workforce and investments in technical and operational capabilities. Other Expenses increased to Rs.378.28 Lakhs from Rs.213.30 Lakhs primarily due to higher business activity, customer support requirements, technology infrastructure expenses and operational scaling initiatives.

Profit Before Tax (PBT) increased significantly to Rs.964.78 Lakhs as against Rs.564.01 Lakhs in the previous year, representing a growth of 71.06%. The increase in profitability was primarily driven by higher revenue generation, improved operational efficiencies and effective cost management.

Profit After Tax (PAT) increased to Rs.701.15 Lakhs from Rs.438.34 Lakhs in FY 2024-25, recording a growth of 59.95%. Total Comprehensive Income stood at Rs.701.41 Lakhs as compared to Rs.436.41 Lakhs in the previous year.

The Companys Earnings Per Share (Basic) increased to Rs.15.11 per share from ^ 11.77 per share in the previous financial year, reflecting improved profitability and value creation for shareholders. Diluted Earnings Per Share stood at Rs.15.03 per share as compared to ^ 11.77 per share in FY 2024-25.

The management remains focused on strengthening the Companys technology portfolio, enhancing product capabilities, expanding market reach and increasing recurring revenue streams through SaaS- based offerings and long-term customer engagements. The Company continues to invest in innovation, digital transformation technologies, cybersecurity and human capital to support sustainable growth in the coming years.

The increasing contribution of recurring revenues from SaaS offerings, annual maintenance contracts and support services further strengthened revenue visibility and business sustainability.

The Companys strong financial performance reflects the scalability of its business model, growing market acceptance of its technology platforms and continued focus on operational excellence. Supported by a diversified product portfolio, recurring revenue streams and strategic investments in innovation and human capital, the Company remains well positioned to sustain growth and create longterm value for stakeholders.

j) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company recognizes its human capital as a key driver of innovation, operational excellence and long-term business growth. The continued success of the Companys business is supported by a skilled, motivated and customer-focused workforce committed to delivering value to customers and stakeholders.

During the Financial Year 2025-26, the Company continued to invest in employee development through technical training programmes, leadership development initiatives, skill enhancement activities and continuous learning opportunities. Particular emphasis was placed on strengthening competencies in emerging technologies such as Artificial Intelligence (AI), cloud computing, cybersecurity, enterprise software development and digital transformation solutions.

To support its expanding operations and growing customer base, the Company further strengthened its talent pool across software development, implementation services, technical support, sales and marketing, operations, administration and corporate functions. The Company remains focused on attracting, developing and retaining high-quality talent while fostering a culture of innovation, collaboration and continuous improvement.

Industrial relations remained cordial throughout the year. The Company continued to maintain a positive, collaborative and performance-driven work environment characterized by mutual trust, respect and employee engagement. The management remains committed to fostering a workplace culture that promotes professional growth, organizational excellence and long-term value creation.

The Company continues to maintain a performance-driven culture with emphasis on diversity, equal opportunity employment, employee engagement and workplace ethics.

As on 31st March, 2026, the Company had 156 employees on its rolls.

k) Liquidity and Capital Resources

The Company maintained a strong liquidity position during FY 2025 -26 supported by healthy operating cash generation, low debt levels and adequate working capital resources. The Company continues to maintain a prudent capital structure to support future growth initiatives.

k) Customer Concentration Statement

The Company maintains a diversified customer base comprising educational institutions, enterprises and other organizations. The Company does not have significant dependence on any single customer for its revenue, which helps mitigate customer concentration risk and supports business stability.

l) Forward-looking statements

We have taken the utmost care in preparing this report, which may contain forecasts or information pertaining to forecasts. Forecasts are typically based on facts, expectations, and past data. However, it is important to note that actual results may differ from the forecasted ones, as is the case with all forward-looking statements. Therefore, we cannot guarantee the accuracy, completeness, and currency of the information provided in our forward-looking statements, including those sourced from third parties. Readers are advised to exercise their own discretion. We are not obligated to publicly update any forward-looking statements, whether due to new information, future events, or any other reasons.

m) Key Financial Ratio

Ratio	FY 2025-26	FY 2024-25	% Change
Debtors Turnover Ratio	3.21	2.72	18.01%
Inventory Ratio	NA	NA	NA
Interest Coverage Ratio	162.07	186.53	-13.11%
Current Ratio	29.31	8.71	236.51%
Debt Equity Ratio	0.01	0.02	-27.40%
Operating Profit Margin (%)	37.92%	40.77%	-6.99%
Net Profit Margin (%)	29.50%	33.23%	-11.23%
Return on Net Worth (%)	25.55%*	33.60%	-23.96%

Details of Significant Changes in Key Financial Ratios

Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of significant changes (i.e., change of 25% or more as compared to the immediately previous financial year) in key financial ratios along with explanations are as under:

Current Ratio: The Current Ratio increased significantly from 8.71 in FY 2024-25 to 29.31 in FY 2025-26, primarily due to substantial growth in current assets, including cash and bank balances, trade receivables and other financial assets, supported by improved business performance and capital infusion during the year, while current liabilities remained relatively lower.

Debt Equity Ratio: The Debt Equity Ratio decreased from 0.02 in FY 2024-25 to 0.01 in FY 2025-26 mainly due to a significant increase in shareholders funds arising from retained earnings and capital augmentation, coupled with the Companys continued low reliance on external borrowings.

Return on Net Worth: Return on Net Worth decreased from 33.60% in FY 2024-25 to 25.55% in FY 2025-26 primarily on account of a substantial increase in shareholders funds following capital augmentation and retention of profits, resulting in a larger equity base, despite healthy growth in revenue and profitability during the year.

""Percentage change has been computed based on the actual ratio values before rounding.

The remaining key financial ratios did not witness a variation of 25% or more as compared to the immediately preceding financial year. The Company intends to utilize the strengthened liquidity position towards product development, market expansion, technology investments and strategic growth initiatives.

Date : 13 July, 2026 Place : Rajkot	For & on behalf of the Board of Directors INFINITY INFOWAY LIMITED
Sd/- Dhirajlal B. Gadhethriya Chairman Cum Wholetime Director [DIN: 07199208]	Sd/- Bhaveshkumar D. Gadhethriya Managing Director [DIN: 0145308]