InfoBeans Technologies Ltd Management Discussions

Economic overview

Global economy

Following a series of unprecedented global disruptions in previous years, economic growth remained stable yet subdued through 2024.

However, the global landscape has shifted significantly as governments worldwide revisit and realign their policy priorities.

Since the January update, the United States has announced sweeping new tariff measures, prompting retaliatory actions from key trading partners. As of April 2, 2025, near-universal tariffs by US have pushed effective tariff rates to their highest levels in a century. This development represents a major adverse shock to global growth, compounded by the unpredictability surrounding the timing and scale of these policy moves. Such volatility has further clouded economic activity and made forecasting notably more challenging.

Given the highly fluid situation, the latest projections present a ‘reference forecast based on information available up to April 4, 2025, factoring in the new tariffs and initial global responses.

Supplementary scenarios consider alternative trade policy assumptions. Under the reference forecast, global growth is projected to decline sharply to 2.8% in 2025 and 3.0% in 2026, down from the previously anticipated 3.3% for both years, and well below the historical (2000 2019) average of 3.7%.

Advanced economies are expected to see growth slow to 1.4% in 2025.

In the United States, growth is forecasted at 1.8%, a 0.9%-point downgrade compared to earlier projections, driven by heightened policy uncertainty, escalating trade tensions, and softer domestic demand. Growth in the euro area is expected to ease to 0.8%.

Emerging markets and developing economies are also projected to lose momentum, with growth expected at 3.7% in 2025 and 3.9% in 2026, particularly impacted by the downturn in major economies such as China.

Meanwhile, global headline inflation is now projected to ease more gradually than previously estimated, reaching 4.3% in 2025 and 3.6% in 2026. Inflation forecasts for advanced economies have been revised upward, while slight downward adjustments have been made for emerging markets.

Overall, downside risks continue to dominate the outlook. An escalation of trade conflicts, heightened policy uncertainty, and weakened policy buffers could exert further pressure on near-term and long-term growth prospects. In addition, increased financial volatility, exchange rate fluctuations, capital flow disruptions, and rising debt vulnerabilities, especially in already stressed economies, pose significant threats to global stability. Broader financial instability, including risks to the international monetary system, remains a critical concern.

Overview of the world economic outlook projections (%)

	Actual Projections
Economy	2024	2025	2026
World output	3.3	2.8	3.0
Advanced economies	1.8	1.4	1.5
United States (US)	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Japan	0.1	0.6	0.6
United Kingdom (UK)	1.1	1.1	1.4
Other advanced economies	2.2	1.8	2.0
Emerging market and developing economies	4.3	3.7	3.9
China	5.0	4.0	4.0
India	6.5	6.2	6.3

Source: IMF - World Economic Outlook - April 2025

Indian economy

According to the first advance estimates released by the National

Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI), Indias real GDP growth for FY25 is projected at 6.4%. On the demand side, private final consumption expenditure (PFCE) is expected to grow by 7.3% at constant prices, supported by a recovery in rural demand. PFCE as a share of GDP (at current prices) is estimated to rise from 60.3% in FY24 to 61.8% in FY25, the highest level since FY03. Gross fixed capital formation (GFCF) is also projected to expand by 6.4%.

On the supply side, real Gross Value Added (GVA) is anticipated to grow by 6.4%. The agriculture sector is set to rebound with a growth of

3.8% in FY25. The industrial sector is forecasted to grow by 6.2%, buoyed by strong momentum in construction and utilities (electricity, gas, water supply, and other services). The services sector is expected to maintain robust growth of 7.2%, underpinned by strength in financial services, real estate, professional services, public administration, and defence.

The overall economic outlook remains encouraging. Aggregate GVA surpassed pre-pandemic trends in FY25 and continues to remain above historical levels into

H1FY25. Agriculture has consistently performed above trend, while the industrial sector has regained stability, exceeding its pre-pandemic trajectory. Services growth remains strong, nearing trend levels.

Construction stands out as a key growth driver, with activity surging nearly 15% above pre-pandemic trends, fuelled by strong infrastructure and housing demand. The utilities sector reached its pre-pandemic trend by the end of FY23 and has consistently maintained its upward momentum. Manufacturing continues to recover steadily, though it remains marginally below pre-pandemic levels, while mining activities continue to lag.

Within services, recovery has been uneven. Financial, real estate, and professional services surpassed pre-pandemic trends by FY23-end, while public administration, defence, and related services achieved similar milestones in Q1 FY25.

Source: Economic Survey 2024-25

Industry overview

Global IT industry

The worldwide IT spending is expected to reach USD 5.61 trillion in 2025, reflecting a 9.8% increase over 2024. While IT budgets are expanding, much of the increase is anticipated to offset rising costs across hardware, software, and services, thereby skewing real IT spending growth versus nominal figures.

Spending patterns in 2025 are set to be heavily influenced by Generative

AI (GenAI). Segments such as data centre systems, devices, and software are projected to register double-digit growth, largely driven by AI-related hardware upgrades. However, while enterprises and consumers will invest in AI-ready PCs, tablets, and smartphones, these purchases will not yet be differentiated by GenAI functionality, as compelling ‘must-have AI applications are still emerging.

Spending on AI-optimised servers is forecast to more than double that of traditional servers, reaching USD 202 billion in 2025. IT services firms and hyperscalers are expected to dominate this investment, collectively accounting for over 70% of total server spending. By 2028, hyperscalers are projected to manage AI-optimised server assets valued at approximately USD 1 trillion, shifting their business models to align with the evolving AI ecosystem.

Despite GenAI currently entering a phase of declining expectations (the ‘trough of disillusionment), organisations continue to commit substantial investments to AI infrastructure, signalling a longer-term transformational impact. Overall, the global IT industry remains resilient, with opportunities in cloud computing, AI, cyber security, customer experience, and business transformation shaping the technology agenda for the future.

It is a dynamic environment where CIOs and IT executives must navigate both cost pressures and innovation-driven growth.

Worldwide IT Spending Forecast (in million USD)

	2024		2025
	Spending	Growth %	Spending	Growth %
Data centre systems	329,132	39.4	405,505	23.2
Devices	734,162	6.0	810,234	10.4
Software	1,091,569	12.0	1,246,842	14.2
IT services	1,588,121	5.6	1,731,467	9.0
Communications services	1,371,787	2.3	1,423,746	3.8
Overall IT	5,114,771	7.7	5,617,795	9.8
Source: Gartner

Indian IT industry

The Indian technology industry continued to strengthen its position as a global leader in FY25, demonstrating resilience despite global uncertainties, including election cycles in major economies. Industry revenue, including hardware, is estimated to reach USD 283 billion, marking a 5.1% year-on-year growth. Exports are expected to cross the USD 200 billion mark, growing 4.6% to USD 224 billion, while the domestic technology market is set to reach USD 58.2 billion, growing 7.0% year-on-year.

Net hiring in the industry improved in FY25, with the addition of 126,000 employees, taking the total workforce to 5.80 million, representing a 2.2% increase over the previous year. The United States and the BFSI sector emerged as primary growth drivers, complemented by strong contributions from the APAC region, telecom, retail, and healthcare sectors.

Key trends shaping the industry included the expansion of AI-led delivery models, growing adoption of cloud-native technologies and cyber security services, the rise of transformation-driven Business Process Management (BPM), increased innovation in software products and DeepTech, and the emergence of Engineering, Research & Development (ER&D) as a major growth engine. The Global Capability Centre (GCC) ecosystem also expanded reinforcing Indias position as a global technology and innovation hub. Enterprise adoption of AI and GenAI technologies gained pace, alongside a continued focus on building future-ready talent through skill development initiatives.

The NASSCOM Annual Enterprise

CXO Survey 2025 reflects a positive outlook for CY25, with 82% of CXOs expecting a 5% or higher increase in digital spending, particularly in

AI-led initiatives. Similarly, 77% of technology providers expect stronger business growth in FY26, supported by expanding digital scope, growth in emerging markets, and strategic AI-driven demand. However, hiring expectations remain moderate, with 45% of providers planning increased recruitment over FY25.

To sustain momentum, the industry is focusing on four strategic imperatives: co-creating personalised growth journeys with clients, collaborating with future-ready partners for long-term value, converging services and products onto scalable, customisable platforms, and catalysing innovation through enhanced tech R&D and talent development.

With a robust foundation and a clear strategic focus, the Indian technology industry remains poised for sustained growth and global leadership.

Source: NASSCOM

Company overview

InfoBeans Technologies Limited is a global AI led data and engineering, and digital transformation company that designs, builds, and manages digital applications and delivers best software technologies to solve complex business problems for its clients. Founded in 2000, we have evolved from our early beginnings into a publicly listed, globally recognised leader in our domain.

With deep expertise across a wide range of digital technologies, we consistently innovate to deliver meaningful outcomes and create long-term value for our clients. The trust we build, across clients, team members, partners, vendors, and the broader community, is a defining differentiator.

Our vibrant team of 1,447 passionate people 1,402 permanent and 45 contractual is committed to creating a positive impact through their work. A strong focus on the well-being and growth of our people has nurtured a culture of joy, engagement, and excellence, further enhancing our ability to deliver exceptional results.

Through strong partnerships with Salesforce, ServiceNow, Microsoft, Azure, agineo, Materna and Whatfix, we empower clients to accelerate their digital transformation journeys and build a competitive edge.

Driven by a mission to create enduring value for our entire ecosystem, including our team, clients, partners, shareholders, and the environment, InfoBeans measures success not merely by financial returns, but by the ‘WOW moments we create for every stakeholder.

FY25 performance discussion

Profit & loss statement

On a consolidated basis, the Company registered a total revenue of Rs. 409 crore (including other income of Rs. 15 crore) for the year ended 31 March 2025, as compared to Rs. 384 crore (including other income of Rs. 14 crore) for the year ended 31 March 2024, registering a growth of 7%. The Company registered a net profit of Rs. 38 crore for the year ended 31 March 2025, as compared to Rs. 22 crore in the year ended 31 March 2024.

The main reasons for this significant improvement are:

Increase in revenue: Higher sales volumes allow fixed operating costs to be spread over more units, reducing per-unit costs and boosting the operating margin.

Reduction in operating expenses: Improved cost controls and efficiency measures lowered overall operating costs relative to revenue, further enhancing profitability.

Effective management execution:

The company demonstrated strong discipline in managing costs and optimizing processes, contributing to a more robust operating margin

Balance sheet Non current assets

1. Property plant and equipment:

Property, plant and equipment as on 31 March 2025, were Rs. 10 as compared to Rs. 12 crore in the previous year. The net movement of Rs. 2 crore is explained below:

a. Additions during the year:Rs. 2 crore

b. Depreciation for the year: Rs. 4 crore.

2. Goodwill:

Goodwill as on 31 March 2025, stood at Rs. 14 crore, as compared to Rs. 37 crore in the previous year. The movement of Rs. 23 crore is because of the impairment.

For more details on the impairment, kindly refer to Note 42A: Impairment of Goodwill, of the Consolidated Financial Statements.

3. Other intangible asset:

Other intangible assets as on 31 March 2025, were Rs. 84 crore as compared to Rs. 99 crore in the previous year. The movement of Rs. 15 crore is explained below:

a. Amortization for the year: Rs. 14 crore

b. Impairment of Customer contract and other intangible assets: Rs. 1 crore

For more details on the impairment, kindly refer to

Note 42B: IMPAIRMENT OF INTANGIBLE ASSETS, of the Consolidated Financial Statements.

4. Right-of-use assets:

Right-of-use assets as on 31 March 2025, stood at Rs. 17 crore, as compared to Rs. 22 crore in the previous year. The movement of Rs. 5 crore is on account of:

a. Depreciation of the lease-hold assets - Rs. 9 crore

b. Addition on account of renewal of leases [Net of deletion on account of cancellation of lease] -Rs. 4 crore.

For more details, kindly refer to Note 36 : Leases of the Consolidated Financial Statements.

5. Non-current financial assets:

A. Other financial assets

Other financial assets as on 31 March 2025, did not observe any significant movement from the previous year and remained stable at Rs. 3 crore.

6. Deferred tax assets:

a. Deferred tax assets (net) as on 31 March 2025, were Rs. 11 crore as compared to Rs. 16 crore in the previous year.

b. Income tax assets (net) as on 31 March 2025 were Rs. 4 crore as compared to Rs. 1 crore in the previous year.

7. Current

A. Investments

The current investments as on 31 March 2025, were Rs. 114 crore as compared to Rs.83 crore in the previous year.

The increase is on account of investments done by the company in bonds and liquid funds.

B. Trade receivables

Trade receivables as on 31 March 2025, were Rs. 86 crore as compared to Rs. 76 crore in the previous year. The movement is attributed to the increase in sales and unbilled revenue during the last quarter of the financial year 2024-25. For more details, kindly refer to Note 8: Trade Receivables, of Consolidated Financial Statements.

C. Cash and cash equivalents

Cash and cash equivalents as on 31 March 2025, were Rs. 47 croreascomparedtoRs.37 financial liabilities crore in the previous year.

D. Other financial assets

Other financial assets as on 31 March 2025, were at Rs. 13 crore as compared to Rs. 12 crore in the previous year. The increase in other financials assets is on account of reclassification of security deposit for leased hold premise from non-current to current as maturity falls within the 12 months from the reporting date.

8. Other current assets:

Other current assets as on 31 March 2025, were at Rs. 4 crore as compared to Rs. 6 crore in the previous year. The decrease is on account of reclassification of taxes paid in USA for InfoBeans INC from Other current assets to Income tax assets.

9. Total equity:

We have only one class of equity share of par value Rs. 10 each. The issued, subscribed and paid-up capital along with other equity stood at Rs. 332 crore as at 31 March 2025, which was Rs. 296 crore in the previous year. The movement of Rs. 36 crore is explained below:

a. During the year, we have allotted 5,72,085 Equity Shares to the eligible team members as per the InfoBeans Partnership Programme, (Employee Stock

Option Plan 2016), resulting in an increase in the number of Equity Shares and also increase in the Total share based payment reserve by Rs. 1 crore.

b. During the year, the company earned a profit of Rs. 37 crore and distributed dividend of Rs. 2 crore, resulting in an increase of Rs.35 crore.

10. Non-current financial liabilities:

Non-current(including the lease liability and other financial liability) as on 31 March 2025, were Rs. 10 crore as compared to Rs. 17 crore in the previous year. The movement of Rs. 7 crore is explained below:

Lease liabilities of the company were reduced by Rs. 6 crore, from Rs. 16 crore to Rs. 10 crore mainly on account of reclassification of lease liability from non-current to current for our office in New York.

Other financial liability of the company was reduced by Rs. 1 crore on account of reclassification of the security deposit payable from non-current to current, payable for the lease hold premise in the USA.

11. Long term provisions:

The long term provisions as on 31 March 2025, were Rs.14 crore as compared to Rs.12 crore in the previous year.

The movement is on account of increase in the provision for employee benefits by Rs. 2 crore

12. Current liabilities:

Current financial liabilities(includes lease liability, trade payables and other financial liability).

The current financial liabilities as on 31 March 2025, were Rs.16 crore as compared to Rs. 41 crore in the previous year, and observed a movement of Rs. 25 crore which is mainly on account of derecognition of deferred consideration payable to the erst while founders of InfoBeans CloudTech Limited.

13. Other current liabilities:

The Other current liabilities as on

31 March 2025, were Rs. 14 crore as compared to Rs. 10 crore in the previous year, and observed a movement of Rs. 4 crore which is mainly on account of increase in statutory dues and deferred revenue.

14. Short term provisions:

The short term other current liabilities as on 31 March 2025, were Rs. 4 crore as compared to Rs. 4.21 crore in the previous year, and observed a marginal movement of Rs. 21 lakh.

15. Current tax liabilities:

The current tax liabilities as on 31 March 2025, were Nil as compared to Rs. 1 crore in the previous year.

Financial ratios

Particulars	March 31, 2025	March 31, 2024	Change	Remarks
Debtors Turnover Ratio	4.85	5.25	-7.54%
Current Ratio	7.73	3.84	101.20%	The significant increase in the current ratio is primarily due to a rise in current assets, which includes:
				- Increase in current investments
				- Increase in trade receivables
				- Increase in cash and cash equivalents
Debt-Equity Ratio	0.06	0.08	-25.88%	The debt-equity ratio improved significantly due to the repayment of lease liabilities and an increase in shareholders funds resulting from ability profit higher
Operating Profit Margins	13.49%	9.50%	42.01%	The main reasons for this significant improvement are:
				Increase in revenue: Higher sales volumes allow fixed operating costs to be spread over more units, reducing per-unit costs and boosting the operating margin.
				Reduction in operating expenses: Improved cost controls and efficiency measures lowered overall operating costs relative to revenue, further enhancing profitability.
				Effective management execution: The company demonstrated strong discipline in managing costs and optimizing processes, contributing to a more robust operating margin
Net Profit Margin	9.3%	5.80%	59.88%	The net profit margin increased substantially due to higher revenue and a reduction in operating costs
Interest Coverage Ratio	22.83	6.36	258.96%	The sharp rise in the interest coverage ratio is attributed to a reduction in finance costs, which resulted from the decrease in deferred consideration payable and an increase in profit operating
Return on Equity Ratio	11.43%	7.92%	44.30%	The return on equity improved due to increased profitability, which was driven by higher revenue and reduced operating costs

Outlook

At InfoBeans, our mission is to engage in meaningful work that delivers long-term value to our entire ecosystem — including our team, clients, partners, shareholders, and the environment. We are committed to ensuring that our efforts remain constant, responsible, and sustainable. To stay relevant in todays competitive industry, we focus on making strategic investments, fostering a positive attitude, and demonstrating perseverance. Our long-term vision is to achieve growth through a balanced combination of organic and inorganic strategies.

Organic Growth

We are dedicated to strengthening relationships and expanding business with our existing clients, while also acquiring new enterprise clients with robust balance sheets and long-term digital transformation needs. Artificial Intelligence (AI) is a key differentiator for us, central to both our future growth as a service offering and as a driver of internal productivity.

Our strong alliances with leading cloud platforms like Salesforce and ServiceNow, investments in AI-based technologies, and a talented engineering team enable us to deliver outcome-driven solutions.

This approach has resulted in 95% of our clients returning to us for additional work each year.

We continue to grow our presence in North America, Germany, and the Middle East through our dedicated sales and client success teams. Additionally, our strategic partnership with agineo, the largest German ServiceNow elite partner, is helping us expand further into European and global markets.

Inorganic Growth

InfoBeans also pursues a well-defined inorganic growth strategy, supported by a healthy cash reserve and a strong commitment to achieving our growth objectives. We have a focused team dedicated to identifying acquisition opportunities in targeted capabilities, geographies, and cultures. While we are proactive in seeking growth, we remain prudent — only pursuing deals where there are clear value drivers, a defined integration path, and achievable synergies. We aim to be both aggressive and selective, ensuring that any definitive deal is made with organizations that align with our strategic goals.

Opportunities & threats

Opportunities

O Rising demand for AI, cloud, and cyber security services

O Expanding into tier-2 cities to optimise talent acquisition and costs O Increased investments by Global Capability Centres (GCCs) in India O Growing adoption of digital transformation across industries O Higher growth potential compared to larger IT firms O Agility and flexibility of mid-sized IT firms to quickly adapt to client needs

Threats

Global macroeconomic uncertainties impacting growth trajectories

Intensifying competition for skilled technology talent

Shrinking fresh graduate hiring pool affecting future talent supply

Heightened cyber security risks and data breach vulnerabilities

Margin pressures due to escalating operational costs

Rapid technology evolution necessitating continuous upskilling

People

Material development in Human Resource

At the core of InfoBeans success is our people. As a leading technology services provider, we recognise that our achievements are shaped by a passionate, innovative team that drives our vision forward.

To empower the next generation of leaders, we have forged strong partnerships with premier institutes like the Indian Institutes of Management (IIMs), providing comprehensive training and skill-building opportunities. In FY25 alone, we logged an impressive 19,669 man-hours of learning, ensuring our team remains equipped with cutting-edge skills and the latest industry insights.

Fostering an open, collaborative, and innovative workplace remains a top priority. Our flagship Innovation Day events have become a cornerstone of our culture, generating breakthrough ideas and strengthening connections across all levels of the organisation. Team members actively contribute to strategic thinking, envisioning the future, and aligning personal goals with the broader InfoBeans vision, instilling ownership and pride.

Recognising the importance of work-life balance and overall well-being, we continue to implement employee-centric initiatives. The launch of our state-of-the-art office in Bengaluru brings the workplace closer to our people, improving quality of life. We also offer financial aid and flexible work arrangements, reflecting our commitment to supporting our teams evolving needs.

Compassion and empathy form the foundation of our culture. By prioritising care, respect, and genuine connection, we have created an environment where individuals feel valued, supported, and inspired to deliver their best. This approach has strengthened employee engagement, enhanced retention, and reinforced InfoBeans reputation as an employer of choice.

Our commitment to shared success is reflected in the InfoBeans Partnership Programme, with 173 team members holding 5,72,085

ESOPs. This initiative rewards dedication and aligns individual aspirations with the Companys long-term growth ambitions. Today, we are actively engaging our teams to envision and drive the next 10x growth journey, fuelled by passion, purpose, and collective ambition.

As on March 31st, 2025, we had a team of 1,402 people and 45 contractual people.

Internal control and their adequacy

In response to amendments to the Companies Act, InfoBeans

Technologies Limited has implemented additional measures to further strengthen its internal control systems. Key enhancements include a fraud risk assessment programme, mandatory leave policy for employees, a more rigorous background verification process for new hires, an enhanced whistle-blower mechanism, and a fortified risk management framework.

Our internal control systems are meticulously designed to promote operational efficiency, safeguard assets, ensure accurate financial reporting, and uphold compliance with all applicable laws and regulations. The Company operates within a well-defined policy framework, supported by clearly articulated authorities and governance guidelines.

We have established robust controls to ensure optimal resource utilisation, precise financial transaction recording, and strict adherence to statutory requirements. Our systems also ensure that assets are protected against unauthorised use or disposition, with all transactions duly authorised, documented, and reported.

An exhaustive budgetary control system enables continuous monitoring of expenditures against approved budgets. Recognising the critical importance of internal scrutiny, we maintain a strong internal audit function responsible for assessing the adequacy and compliance of policies, plans, and statutory obligations. This function also evaluates and strengthens the effectiveness of our risk management, control, and governance practices.

Regular audits and system verifications empower our business units to identify and promptly address any shortcomings. As part of our commitment to continuous improvement, we proactively assess and enhance risk mitigation measures across all key operations and governance processes. Our auditors rigorously test these controls, with findings and corrective actions reviewed periodically by top management and the Audit Committee of the Board to ensure swift and effective resolution.

Industrial Relations

During FY25, InfoBeans Technologies Limited sustained strong and harmonious industrial relations.

Risks & concerns

This section contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from those anticipated due to various factors.

Cautionary statement

This document contains forward-looking statements related to expected future events, financial performance, and operational outcomes for InfoBeans Technologies Limited.

These statements are based on assumptions and are inherently subject to risks and uncertainties. While we endeavour to ensure accuracy, actual results and developments may differ materially from those anticipated.

Readers are advised not to place undue reliance on these statements. Various factors could cause actual outcomes to vary significantly from those projected. Accordingly, this document should be read in its entirety, alongside the assumptions, qualifications, and risk factors outlined in the Managements Discussion and Analysis section of InfoBeans Technologies Limiteds Annual Report for FY25.