Infollion Research Services Ltd Management Discussions

[Disclaimer: This document may contain statements about expected future events and predictions of your Company, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred herein]

A. Industry Structure and Developments

The talent landscape has continued to broaden beyond traditional employment and staffing models, with enterprises increasingly accessing capabilities through a combination of permanent employees, contingent resources, professional marketplaces and specialised knowledge platforms. At the higher end of the gig economy are B2B Human Cloud and expert networks, which connect enterprises with experienced professionals, industry practitioners, former executives and domain specialists for specific business and knowledge requirements. This represents a distinct segment of the broader gig economy, where the value proposition is centred on access to specialised knowledge and experience rather than simply a functional capacity or manpower.

The B2B Human Cloud has consequently developed into a more structured ecosystem, with different layers serving different enterprise requirements. Broad-based professional marketplaces cater to generalised and functional talent requirements, while specialised platforms address higher-value and domain-specific needs. Expert networks operate at the specialised end of this spectrum, enabling institutional clients such as private equity firms, management consulting firms, venture capital firms and corporate strategy teams to access vetted experts through consultations, surveys, workshops and longer-duration advisory engagements. Technology-enabled expert discovery and matching, structured compliance processes and digital engagement platforms form the core of this model, allowing enterprises to access relevant expertise across geographies without necessarily maintaining corresponding capabilities within their permanent workforce.

Over the past few years, the use of such platforms has moved from being a largely tactical resource towards becoming an increasingly integrated component of enterprise research and decision-making. The normalisation of remote and digital work, shorter business and investment cycles, increasing complexity across industries and the need for flexible cost structures have supported this transition. Organisations are increasingly able to access specialised knowledge when required, expanding the application of expert networks and specialised talent platforms beyond conventional research to commercial due diligence, investment research, market assessment, strategy, product development and specialised functional requirements. Technology and Artificial Intelligence ("Al”) are further accelerating this evolution through capabilities such as semantic search, intelligent matching, automated compliance and workflow automation, while simultaneously creating new demand for specialised human expertise in areas such as Al implementation, validation, model evaluation, model training and industry-specific applications.

The underlying shift towards accessing specialised capabilities through external platforms and service providers extends beyond expert networks into the broader HR Services industry. As enterprises seek to focus internal resources on core competencies while accessing specialised capabilities externally, HR services are increasingly moving from individual, transactional offerings towards integrated and outsourced solutions. Within this landscape, Learning & Development ("L&D”) has evolved beyond conventional training delivery to encompass competency mapping, instructional design, content development, learning technology and training administration. The convergence of these capabilities is driving the growth of Managed Training Services ("MTS”), wherein enterprises increasingly outsource the operational management and execution of their training and capability-building requirements to specialised providers, while strategic priorities and core competencies continue to be managed by HR leadership teams and, where required, specialist consultants. This creates an opportunity to outsource a significant portion of the underlying design, technology, content, administration and delivery requirements to integrated service providers. Increasing skill gaps, rapid technological disruption and the need for continuous workforce upskilling are further supporting this transition from periodic training interventions towards continuous, managed capability-building.

The scope of this market is also expanding through the convergence of experiential learning and enterprise capability-building. Corporate expenditure is increasingly moving beyond conventional event logistics and hospitality towards purpose-driven offsites, leadership retreats, immersive learning and structured training deployments. This is creating demand for managed service partners capable of integrating vendor management and logistical execution with learning outcomes, instructional frameworks, content and access to specialised subject matter expertise. Value-added MICE therefore represents a complementary component of the broader MTS opportunity, bringing together experiential engagement, training and event execution.

B. Opportunities and Threats

Opportunities

? Globalization of the Talent Pool: The B2B Human Cloud and expert network models provide enterprises with access to a global pool of specialised professionals, enabling them to access expertise that may not be readily available within their local or internal talent pool. This is particularly relevant for growing economies such as India, where businesses increasingly seek access to global expertise and knowledge.

? Scalability and Flexibility: B2B Human Cloud businesses enable enterprises to scale their access to talent based on their requirements without the fixed costs and long-term commitments associated with full-time employees. The increasing adoption of flexible and project-based engagement models provides an opportunity for the industry to cater to a wider range of enterprise requirements.

? Growing Market for Specialised Expertise: The increasing complexity of businesses and shorter decision-making cycles are driving demand for specialised knowledge. Expert networks can enable businesses to access industry practitioners and domain specialists for specific requirements, creating opportunities for growth across research, strategy, investment and other knowledge-intensive use cases.

Artificial Intelligence and Human Intelligence: The growing adoption of Artificial Intelligence presents opportunities for the Human Cloud by increasing the requirement for human intelligence in areas such as Al model training, evaluation, validation and industry- specific applications. At the same time, Al-enabled technology can improve expert discovery, matching and compliance, thereby increasing the efficiency and scalability of expert network platforms.

? Growing Managed Training Services Market: The increasing outsourcing of Learning & Development activities presents an opportunity in the Managed Training Services market. Enterprises are increasingly looking to outsource activities such as instructional design, content development, learning technology, training administration and delivery, while retaining core competencies and strategic decisions internally. This creates opportunities for integrated service providers to address a larger portion of the enterprise training requirement.

Threats

? Data Security and Privacy: The industry involves sharing sensitive business information and professional data with external experts and service providers. Any data security or privacy breach may adversely impact client confidence and business operations.

Artificial Intelligence Disruption: Rapid advancements in Artificial Intelligence may automate certain research, information-gathering and knowledge-processing activities that are currently supported by human experts. Increasing adoption of Al by enterprises could reduce demand for certain types of expert engagements and may require the industry to continuously adapt its services and value pro- position.

? Dependency on Technology: The success of Human Cloud, expert network and managed service businesses relies significantly on technology platforms and digital connectivity. Technical issues, cybersecurity threats, system outages or rapid changes in technology may disrupt operations.

? Regulatory Changes: Changes in applicable laws, regulations, taxation, employment practices, data privacy requirements or other regulatory frameworks may impact the operations and costs of the business.

? Revenue Concentration: Revenues from operations may be dependent on a limited number of clients. Any reduction in business from key clients, loss of clients or changes in their spending patterns may have an adverse impact on revenues and profitability.

C. Segment-wise or Product-wise Performance

The Companys business activities fall within a single primary business segment. Accordingly, disclosures under AS-17 "Segment Reporting” are not required to be made.

D. Outlook

The outlook for the industry remains favourable, supported by the continued shift towards flexible access to talent and specialised knowledge. The broader white-collar gig economy and B2B Human Cloud are expected to become increasingly relevant as businesses seek greater flexibility in accessing specialised capabilities without corresponding increases in permanent headcount. As enterprises become more accustomed to working with external experts and specialised service providers, the opportunity is also likely to expand beyond traditional research and advisory requirements into a wider range of business and functional use cases. The increasing complexity of businesses, faster decision-making cycles and continuing skill gaps should provide further support to the sector over the medium to long term.

The broader macro environment has remained somewhat stressed, with our set of clients continuing to exercise caution. However, we are beginning to see some green shoots in the form of improved business activity and greater willingness among clients to engage on new requirements. While it is still early to draw firm conclusions, this gives us some comfort that the demand environment for our services may be beginning to stabilize.

As the expert network industry has matured in India, scale and depth of the network are becoming increasingly important competitive advantages. We believe the position we have built in the Indian market is now beginning to create meaningful network effects in our favour. A larger and deeper expert base improves our ability to respond to a wider range of client requirements, while a growing base of enterprise relationships creates more opportunities for experts to participate in relevant engagements. This creates a reinforcing cycle between the supply of expertise and demand from clients, and we believe these effects should become more pronounced as the market develops. The depth of relationships and the breadth of the network that have been built over time therefore provide an increasingly important foundation for growth, both within India and as we look at opportunities in other geographies.

While the availability of skilled professionals has traditionally been concentrated in certain markets, digital connectivity is allowing businesses to access expertise across geographies with increasing ease. This is particularly relevant for growing economies such as India, where businesses are increasingly looking beyond their domestic talent pools for specialised and frontier knowledge. At the same time, the broader HR services market is likely to see greater outsourcing of specialised and non-core activities. Corporate capability building is expected to increasingly move towards integrated models covering programme design, content and instructional capabilities, technology infrastructure, administration and delivery, alongside experiential corporate programmes and interventions. This should support the continued development of the managed services opportunity within the broader HR ecosystem.

Geographic expansion will remain an important area of focus. We have moved towards maintaining a semi-permanent presence in the US, Europe and Dubai earlier than originally planned, reflecting the opportunity we see in these markets and the importance of being closer to clients and experts. At the same time, we are exploring opportunities in South-East Asia.

Artificial Intelligence is expected to be one of the more significant factors shaping the industry over the coming years. While Al could reduce the need for certain forms of information gathering and routine research, it is also likely to increase the value of human intelligence in areas where domain expertise, judgement and contextual understanding remain important. The development and deployment of Al systems will require human expertise for activities such as training, evaluation, validation, governance and application across specific industries. This creates the potential for the Human Cloud and expert network industry to participate in parts of the emerging Al value chain. More broadly, the industry is likely to evolve as technology changes the way expertise is discovered, delivered and consumed, with platforms that can combine technology with access to high-quality human expertise positioned to participate in this evolution.

a. Strategic initiatives

i. Technical & Al

• MCP Server / Open API to embed deeply into client workflows

Infollion is increasingly integrating its expert network directly into the workflows used by clients. The platform currently supports APIs and webhooks that allow clients to create projects, receive vetted expert profiles, coordinate scheduling and receive real-time updates without leaving their own systems.

The next phase is to make expert discovery accessible through Al-enabled workflows, including MCP-based integrations that will allow users to identify relevant experts through Al assistants in natural language, while retaining Infollions existing compliance processes.

The broader objective is to move from being a destination that clients visit to access experts to becoming an embedded layer within their existing research and decision-making workflows. This should improve client convenience and engagement while creating deeper integration with enterprise customers over time.

• Al Bot interviews

Infollion has been among the early adopters of bot-led expert interviews, conducting them through both regular human-in-the-loop workflows and automated workflows enabled through APIs. This allows us to test different use cases and formats while retaining the flexibility to involve analysts where required.

Advancements in Al and text-to-speech technologies are making bot-led interviews increasingly viable at scale. These can allow structured conversations with experts to be conducted efficiently, while capturing and processing responses for further analysis. This can free analysts from time-consuming primary research and allow them to focus on higher-value analysis and interpretation.

As the technology matures, we believe bot-led interviews can expand the addressable market for expert research by making a larger volume of expert interactions economically viable. Deeper integration into client workflows should also increase usage and make the resulting relationships more embedded and sticky.

• Compliance & Regtech

We have also been developing technology-led compliance capabilities for expert networks. Over time, we have built tools to automate and streamline various compliance processes and have started using these tools within our own operations. This allows us to develop and refine the capabilities in a real operating environment while improving the efficiency of our own compliance function.

The opportunity to extend these tools to businesses operating in adjacent areas is currently at an exploratory stage. If the capabilities can be productised effectively, this could potentially allow us to convert what is currently a cost centre for the Company into a profit centre, while creating an additional revenue opportunity from capabilities initially developed for our own requirements.

• Value Chains

Infollions Value Chain capability currently provides a visual representation of an industry, mapping its functions, suppliers, buyers, ecosystem participants and the experts associated with each node. The capability is designed to go beyond a conventional expert search by providing a broader understanding of where relevant knowledge sits within an industry.

The next phase is to make this capability conversational through applications and MCP servers that interface with LLMs. Clients will be able to explore an industry through natural language, ask questions, refine their requirements and be guided towards relevant parts of the value chain and the experts best suited to address them. This should move the proposition from simply searching for experts towards a more contextual discovery of the right expertise.

ii. Geographical

The focus of our geographical expansion is increasingly shifting from simply entering new markets to increasing and deepening our presence in markets where we are already seeing traction. The client base is continuing to grow, while expert pools are being deepened across these geographies. This is being driven by new client acquisition as well as POCs with teams across our existing multinational client base.

With a growing client base and a deepening pool of experts in the US, business inflow from the region is expected to increase in FY 2026-27. Several new clients and POCs with teams from existing multinational clients are in progress, alongside a number of RFPs under review. Upon conversion, these are expected to provide additional project opportunities and increase utilisation of our North American expert pool. We will continue with a semi-permanent presence of approximately one month each quarter in FY 2026-27, with plans to increase our on- ground presence thereafter. We will evaluate a full-time team as the business reaches the required scale.

In the Middle East and Europe, we have brought forward our expansion plans given the encouraging response. We are seeing new client wins as well as POCs with additional teams within existing multinational clients, while continuing to deepen our expert pools in these regions. We will maintain a semi-permanent presence to support business development and build greater depth in these markets.

South-East Asia and East Asia are the next markets we intend to explore, with efforts expected to commence shortly. We will leverage existing client relationships while building local expert pools and developing new client relationships, with the objective of gradually establishing a presence in these markets.

iii. Business

• Syndicated Sessions

Syndicated sessions is an extension of Infollions expert network offering, with the objective of aggregating demand across clients for common areas of interest. Rather than each client commissioning a separate expert interaction, Infollion can identify topics with broader demand and create expert-led knowledge assets that can be accessed by multiple clients.

By spreading the cost of an expert interaction across multiple clients, the model can reduce the price for individual clients, while creating a more scalable revenue opportunity for Infollion. It also allows experts to participate in the economics of the resulting knowledge asset through a perpetual royalty model, while Infollion builds a growing repository of proprietary, reusable content and intellectual property.

Over time, the objective is to build a library of expert-led insights around areas of demonstrated demand, creating a complementary revenue stream alongside the core expert network business and improving the utilisation of the expert network.

• Marketplace for Al-led Research

Infollion Al is being developed as a flexible, pay-per-use platform for Al-led research and decision-making. Users can choose the Al agent most suited to their requirement, select their own data sources, including public or proprietary data, and optionally bring Infollion experts into the workflow. The final thesis can also be validated through relevant experts from the network, combining Al-led analysis with human intelligence.

The platform is intended to address use cases such as due diligence, investment and industry research. The ability to combine Al agents, client-specific data and access to human experts in a single workflow could allow clients to undertake research more efficiently while retaining the option of human validation where required. The offering is currently at an early stage, with the focus on testing use cases and understanding where this combination of Al and human intelligence can create the most value.

• Human Intelligence

Third Eye is Infollions business for bringing verified domain expertise into the development, evaluation and deployment of Al systems. As enterprises move Al from experimentation into production, the business allows clients to draw on experienced practitioners to assess whether Al outputs are accurate, contextually appropriate, safe and defensible. The proposition is differentiated by access to practitioners who carry real-world industry, functional and regulatory context, supported by qualified reviewer traceability and the confidentiality and compliance processes already applied across Infollions expert business. Strategically, the business extends the Companys addressable market beyond traditional expert consultations to Al developers, enterprises, consulting firms and research organisations, and should create scope for more recurring and embedded engagements as Al systems are continuously developed, evaluated and retrained.

b. Huksa

Huksa had a defining year in FY 2025-26, moving from a proof-of-concept into a credible, revenue-generating business with its own client base and delivery infrastructure. During the year, Huksa added 40 new client logos across 20 sectors and delivered over 100 L&D projects spanning expert-led training, e-learning content, leadership and CXO programmes, assessments and instructional design. The vertical crossed ^1 Crore in annual revenue for the first time, providing an important validation of the proposition.

The more significant evolution has been the shift from an expert-sourcing proposition towards a full-stack Managed Training Services (MTS) model. Huksas offering now spans training delivery, technology and LMS, instructional design and administration, with sourcing and corporate offsites as additional capabilities. This model allows us to increase wallet share and move from individual training assignments towards longer-term managed relationships, while retaining expert access as a key differentiator.

An important part of this evolution is the development of customised learning modules alongside a growing library of reusable modules. In the near term, customised modules allow Huksa to address specific client requirements and provide an effective entry point for acquiring new clients and establishing deeper relationships. Over time, the objective is to convert this bespoke work into reusable intellectual property that can be adapted and resold to other clients with similar requirements. This creates the potential to move from a predominantly training delivery model towards a more scalable library-led offering, while continuing to use customised solutions as a means of client acquisition and engagement.

Two such libraries currently being developed are:

• Al in Action Library: A collection of practical case studies and experiences from experts who have implemented Al in their organisations, structured into modules that can be incorporated into broader training programmes. This allows clients to access practical, implementation-oriented Al knowledge rather than generic Al awareness content.

• Private Equity Value Creation Library: A structured repository of expertise and practical use cases around value creation in private equity, which can be used to build relevant learning programmes and modules for clients in the investment ecosystem.

Al is also emerging as a meaningful growth area for Huksa, with early demand for domain-specific Generative Al and Agentic Al workshops. These programmes are designed around specific industry and functional use cases rather than generic Al awareness, leveraging the Companys ability to identify relevant practitioners and translate their experience into structured learning. This positions Huksa at the intersection of expert knowledge, Al implementation and corporate learning.

Huksa remains in its investment phase, with continued investment in people, capabilities and business development. Going forward, the focus will be on deepening wallet share with existing clients, expanding the client base, building reusable content libraries and scaling Al-led training offerings. The objective remains to build a durable and repeatable MTS business, rather than optimise for near-term revenue.

E. Risk and Concerns

The Company understands that it operates in a competitive and challenging environment and its business and operations are subject to a variety of risks and uncertainties like operational risks, financial risks, hazard related risks, market-related risks and strategic risks amongst others.

The Company has a well-defined system in place to reduce its operational risks and has a Risk Management Policy in place that helps in the identification, assessment and monitoring of risks and also helps to mitigate and manage the identified risks.

The Company strives to promote a proactive approach in risks reporting and management. This involves reviewing operations of the organization, identifying potential threats to the organization and the likelihood of their occurrence and then taking appropriate actions to address the most likely threats.

a. Internal Controls

The Company has internal control systems in place appropriately tailored to the size and nature of its business, designed to ensure operational efficiency, safeguard assets, adhere to established policies and procedures, prevent and detect errors and fraud, maintain compliance with internal standards and applicable laws, and ensure the accuracy and reliability of financial statements and reporting.

To reinforce our internal controls, we have enhanced our compliance training programs and introduced improved checks during engagements between Experts and Clients. These programs are designed to ensure that all employees understand and become fully aware of the industrys boundaries and expectations, enabling them to identify and mitigate potential issues before they escalate.

With evolving regulatory requirements and industry best practices, we have proactively updated our compliance processes and internal controls, providing clearer guidelines on information sharing, expert vetting processes, MNPI management and post-engagement feedback.

Additionally, the Companys internal financial controls cover key areas such as revenue reporting and recognition, fixed assets, finance and accounts, taxation, treasury, HR & Payroll, and Procurement. These controls ensure that all transactions are executed with proper authorization, accurately recorded and reported, and that assets are safeguarded against unauthorized use. Additionally, compliance with corporate policies is closely monitored. The Audit Committee regularly interacts with the Statutory Auditors and Management to address matters related to financial reporting and internal controls within its terms of reference.

By continuously investing in our compliance infrastructure, we ensure that our operations remain transparent, accountable, and aligned with the highest ethical standards.

Financial Performance

Summary of Consolidated Profit and Loss for the Year Ended 31st March 2026

(Figures in Rs. Lakh)

Particulars	31-03-2026	31-03-2025
Income From Operations
1 Revenue from operations	10,031.97	7,730.32
II Less: Cost of Sales i.e. Fee to Experts	-5,897.09	-4,202.70
III Gross Profit	4,134.88	3,527.62
IV Other Non-Operating Income	266.81	220.84
V Other Operating Expenses
(a) Employee benefits expenses	-2,157.52	-1,723.47
(b) Depreciation and amortisation expenses	-1.42	-1.66
(c) Finance costs	-44.11	-38.66
(d) Other expenses	-504.28	-338.40
Total Other Operating Expenses	2,707.33	2,102.19
VI Profit before exceptional and extraordinary items and tax (lll-IV)	1,694.37	1,646.27
VII Exceptional items	-	-
VIII Profit before extraordinary items and tax (V-VI)	1,694.37	1,646.27
IX Extraordinary Items	-	-
X Profit before tax (VII-VIII)	1,694.37	1,646.27
XI Less: Tax Expense:	-422.47	-402.12
XI Profit / (Loss) After Tax (IX-X)	1,271.90	1,244.15
XVI Earning per equity share:
(1) Basic (T)	13.11	12.84
(2) Diluted (T)	13.10	12.83

Summary of Standalone Profit and Loss for the Year Ended 31st March 2026

(Figures in Rs. Lakh)

Particulars	31-03-2026	31-03-2025
Income From Operations
1 Revenue from operations	10,031.97	7,730.32
II Less: Cost of Sales i.e. Fee to Experts	-5,897.09	-4,202.70
III Gross Profit	4,134.88	3,527.62
IV Other Non-Operating Income	272.18	223.76
V Other Operating Expenses
(a) Employee benefits expenses	-2,157.52	-1,723.47
(b) Depreciation and amortisation expenses	-1.42	-1.66
(c) Finance costs	-33.31	-36.69
(d) Other expenses	-545.20	-348.66
Total Other Operating Expenses	2,737.45	2,110.48
VI Profit before exceptional and extraordinary items and tax (lll-IV)	1,669.61	1,640.91
VII Exceptional items	-	-
VIII Profit before extraordinary items and tax (V-VI)	1,669.61	1,640.91
IX Extraordinary Items	-	-
X Profit before tax (VII-VIII)	1,669.61	1,640.91
XI Less: Tax Expense:	-417.38	-402.12
XI Profit / (Loss) After Tax (IX-X)	1,252.23	1,238.77
XVI Earning per equity share:
(1) Basic (T)	12.91	12.78
(2) Diluted (T)	12.90	12.78

a. CFOs Comments Revenue from Operations

Consolidated revenue from operations for FY26 stood at fl0,031.97 Lakh, crossing the flOO Crore milestone ? a 29.8% year-on-year growth over f7,730.32 Lakh in FY25. This growth was broad-based: the core India expert network business continued to deliver steady growth, while all three newer verticals ? Huksa (L&D), US Operations, and MENA ? each crossed f 1 Crore in annual revenue for the first time, a significant milestone in our diversification journey. International expansion continued at pace, with more than one-third of the business now being served through experts based outside India, and the North American expert pool now constituting approximately 15% of the total expert base.

It is worth noting that while the full-year growth was strong, the second half saw some moderation in client volumes ? particularly in Q4, where volumes in the final month dropped approximately 20-25% compared to the average of the earlier months. This was partly a function of the prior years HI benefiting from a low-base surge in the India-to-US segment that has since normalised, and partly due to a softer client demand environment as the year closed. The quarterly average of per-day revenue, however, remained broadly stable.

Cost of Sales

Cost of sales for FY26 was f5,897.09 Lakh (58.8% of revenue), up from f4,202.70 Lakh (54.4% of revenue) in FY25. This includes a prior period expense of f86.55 Lakh arising from the correction of accounting treatment of unrequested payments to experts. During HI, the Company revised its accounting policy for expert payments, and this adjustment was a one-time correction for omissions in prior financial years that does not require reversal.

Excluding this charge, cost of sales would stand at f5,810.54 Lakh, or 57.9% of revenue. The underlying increase in cost ratio reflects two deliberate commercial decisions: the extension of client development calls to new international clients as part of the go-to-market strategy to make inroads into newer teams, and the waiver of fees on the last few calls at the conclusion of large projects to strengthen client stickiness in a competitive multi-vendor environment. These are tactical levers that the Company retains the flexibility to adjust as the international book scales.

Gross Profit

Reported gross profit stood at f4,134.88 Lakh with a margin of 41.2%, compared to f3,527.62 Lakh and 45.6% in FY25. Adjusted for the f86.55 Lakh prior period charge on unrequested expert payments, gross profit would be f4,221.43 Lakh at a margin of 42.1%. In absolute terms, gross profit grew 17.2% year-on-year (19.7% adjusted).

However, the reported margin does not fully represent the underlying health of the regular business. Two categories of strategic pricing decisions had a dilutive impact on the blended margin. Stripping these out, the regular business operated at a gross margin of 44.46% ? broadly in line with the prior years 45.6%.

(All figures in Rs. Lakh)

Particulars	Amount
Reported Revenue	10,031.97
Add: Revenue loss from waived-off calls, volume discounts and CD calls	380.32
Less: Revenue from long-term projects with aggressive pricing	(464.42)
Revenue from Regular Business	9,947.87
Reported Expert Fee	5,897.09
Less: Expert fee paid for long-term projects	(372.45)
Total Expert Fee for Regular Business	5,524.64
Gross Profit of Regular Business	4,423.23
Margin from Regular Business	44.46%

Waived-off calls, Volume Discounts and CD Calls (^380.32 Lakh): This represents revenue foregone through three deliberate commercial actions ? expert calls extended to new international clients at zero billing as a go-to-market investment (client development calls), volume discounts offered to deepen relationships with scaled accounts, and fee waivers on concluding calls of large engagements. Full cost of sales was incurred on these interactions with no corresponding revenue ? the entire amount flows directly into margin compression.

Long-Term Projects with Aggressive Pricing (T464.42 Lakh revenue, -19.8% margin): Revenue from certain high volume engagements that were priced aggressively to win or retain strategic accounts in competitive multi-vendor situations. These kinds of high volume projects are used to respect relationships with large old client POCs or new strategic clients in some cases. While margin-dilutive in the near term, these projects establish institutional relationships and position the Company for repeat engagement at normalised pricing.

The compression in reported margin is therefore almost entirely attributable to these strategic choices ? not to any structural deterioration in pricing power or cost of fulfilment. The Company retains full flexibility to recalibrate volumes of waived-off calls and pricing on long-term projects as international relationships mature and move to normalised billing. Structurally, the Company believes it is best positioned to compete on price while remaining profitable, and the near-term priority remains consolidating market position and achieving dominance before pivoting toward margin optimization.

Employee Benefit Expenses

Employee costs were T2,157.52 Lakh, up 25.2% from Tl,723.47 Lakh, as the Company added 71 employees on a net basis during the year, bringing total headcount to 271. The majority of new hires were deployed across newer teams in functional areas and new geographies ? including the US, MENA, Huksa, and the technology platform team ? none of whom were directly contributing to the core business during this period.

As a proportion of revenue, employee costs improved to 21.5% from 22.3%, demonstrating early operating leverage and efficient workforce utilisation even as the Company absorbed over T2 Crore in incremental employee costs in areas that are yet to contribute meaningfully to the top line.

It should also be noted that T141.37 Lakh of technology team salaries were capitalised during HI as part of the accounting policy revision (reflected as Intangible Assets Under Development on the balance sheet), consistent with the treatment of the ongoing proprietary platform build.

Depreciation & Amortisation

Depreciation remained negligible at T1.42 Lakh (FY25: T1.66 Lakh), consistent with the asset-light nature of the business model. The Companys significant technology investment ? reflected in Intangible Assets Under Development of T525.58 Lakh on the balance sheet (up from T236.53 Lakh) ? represents the capitalisation of salary expenses of the technology team working on the proprietary platform. While the core development work is substantially complete and the platform is already being tested and used by clients, additional features are being built out, particularly on the Al and compliance fronts. This asset will begin contributing to amortisation in future periods once the Company is satisfied with the feature set and platform stability, at which point it will be moved to the maintenance phase.

Other Expenses

Other expenses increased to T504.28 Lakh from T338.40 Lakh ? a 49.0% rise, moving from 4.4% to 5.0% of revenue. The increase was primarily driven by two identifiable items with a combined impact of approximately T76 Lakh: research subscription costs for newer markets, which rose from T33 Lakh to T80 Lakh as the Company invested in data and intelligence for geographies where volumes are still scaling, and a one-time ROC fee paid toward the increase in authorised capital. The research subscriptions are recurring but are expected to yield better unit economics as volumes scale in subsequent years. The ROC fee is non-recurring. The balance of the increase reflects higher travel and business development expenditure driven by the Huksa team build-out, the dedicated sales function, and extensive travel to the US and MENA markets.

Tax Expense

Total tax expense for FY26 was T422.47 Lakh, translating to an effective tax rate of 24.9% (FY25: 24.4%). This includes current tax of T424.34 Lakh, prior period tax of TO.96 Lakh, and a deferred tax credit of T2.83 Lakh. The deferred tax reversal in H2 relates to liabilities arising from the valuation of investments in liquid mutual funds ? these investments are taxed as Long-Term Capital Gains (LTCG) at a lower rate, and the correction aligns the tax treatment with the applicable LTCG rate, replacing the earlier provisioning at normal tax rates. The ETR remains within the expected range under the existing tax regime, reflecting the Companys straightforward tax profile with no aggressive positions or material contingencies.

EBITDA

Operating EBITDA (excluding other income) for FY26 was Tl,473.08 Lakh, up marginally from Tl,465.75 Lakh in FY25. EBITDA margin on revenue from operations stood at 14.7% against 19.0% in the prior year. The margin moderation reflects the combined effect of gross margin compression (including the T86.55 Lakh prior period charge), the step-up in employee investment in verticals and geographies not yet contributing to the core business, and the increase in other expenses to support scale.

The management views this as a strategic investment in long-term growth rather than a structural decline in profitability. The Company was able to hold EBITDA in absolute terms while absorbing the full cost of building out three new business verticals, a technology platform team, and a dedicated US and MENA go-to-market apparatus. As these investments mature and begin generating revenue at scale, we expect operating margins to recover over the medium term. The Company also acknowledges that some operational flab has accumulated during the rapid expansion phase and intends to address this in due course.

Net Profit

Profit After Tax for FY26 was ?1,271.90 Lakh, a 2.2% increase over ^1,244.15 Lakh. Net profit margin was 12.7% against 16.1% in FY25. Basic EPS stood at ^13.11 (FY25: ^12.84). The net margin is likely to remain at current levels as long as the Company is in the current expansion phase, and the pace of bottom-line growth lagging top-line expansion reflects a deliberate choice to invest in people, platform, new verticals, and international infrastructure at this stage of the Companys growth trajectory, rather than optimise for near-term profitability.

Cash Flows

Operating cash flow was ?1,051.40 Lakh ? an 87% improvement over ^562.31 Lakh in FY25 ? driven by strong collections discipline and a meaningful improvement in the DSO profile, which reduced from approximately 83 days to 67 days. Trade receivables grew only 4.5% year- on-year against 30% revenue growth. The improved DSO was partly aided by a less pronounced revenue concentration in March 2026 compared to the prior year. Historically, the Companys DSO has remained in the 70-day range, and while we aim to maintain a healthy receivables ageing profile, DSO can be influenced by external factors such as client payment cycles and revenue seasonality.

Cash deployed in investing activities was ^283.94 Lakh, of which ^289.05 Lakh was directed toward software development ? nearly double the prior years ^149.39 Lakh ? underscoring our commitment to building proprietary platform capabilities. The increase in long-term loans and advances from ^98.10 Lakh to ^241.44 Lakh is entirely attributable to TDS refunds recoverable from the Income Tax Department.

The Company remains entirely debt-free, and the closing cash position strengthened to ^4,348.50 Lakh from ^3,547.14 Lakh. The Company has filed its M&A policy and is actively exploring acquisition opportunities, evaluating potential targets. The cash reserve positions the Company well to act swiftly on the right inorganic opportunity while retaining ample headroom for organic growth and strategic invest- ments.

b. Changes in Key Financial Ratios

Particulars	31-03-2026	31-03-2025
(a) Current Ratio	22.05	23.01
(b) Return on Equity Ratio	20.96%	26.07%
(c) Net capital turnover ratio	1.71	1.55
(d) Net profit ratio	12.68%	16.09%
(e) Return on Capital employed	25.18%	30.49%
(f) Trade Receivables Turnover Ratio	5.58	5.40
(g) Trade Payables Turnover Ratio	111.60	84.95

Note: Reason for change of 25% or more as compared to the immediately previous financial year in the key financial ratios: NA

c. Change in Return on Net Worth

Particulars	31-03-2026	31-03-2025
Return on Net Worth	20.96%	26.07%

G. People & Culture

Despite some softness in the business during the year, we continued to expand the organisation at broadly the same pace as before. The relatively lower urgency on hiring also gave us an opportunity to raise the bar for new recruits and be more selective about the capabilities and profiles we brought into the organisation. At the same time, increasing use of Al has helped automate a number of routine activities, allowing our teams to focus more of their time on higher-value work.

For our newer initiatives, we have built dedicated teams around strategic areas such as Fluksa and our Al initiatives, while also continuing to expand the technology team. We have also continued to invest in building the organisation for the longer term. One thing we have observed is that people who develop a strong understanding of our business tend to perform better than lateral hires brought in without that context. We have therefore started identifying and developing such talent earlier in their journey.

We are also increasingly looking for people who can operate beyond narrowly defined roles. The objective is to identify individuals who can work across functions, take ownership of multiple areas and, over time, build and run small service lines within the Company. We believe this combination of domain understanding, ownership and versatility will become increasingly important as the organisation expands into newer businesses.

Training continues to be an important part of how we build the organisation. Building on the Manager Ascent Program (MAP) introduced last year, the batch has now graduated. We have learned from that experience and evolved the programme into a detailed 9-12 month course, combining internal and external trainers, structured modules, regular evaluations and clear progression criteria. Alongside MAP, we continue to double down on regular line training while increasing our focus on cross-functional learning. The objective is not only to improve effectiveness within individual functions, but also to help people develop a broader understanding of the business and take on wider responsibilities over time. We are also leveraging the instructional design and learning infrastructure developed through Fluksa to make these programmes more structured and relevant.

Alongside capability building, we have continued to broaden our focus on employee well-being and engagement. Our General Championship has expanded beyond its earlier focus to include more health and wellness initiatives. Almost all our cultural events encourage employees to group up, discover and showcase their hidden talents and perform together. We see these activities as a simple way of giving people a break from their regular roles and creating an outlet for their natural interests and creativity, while also building stronger connections across the organisation.

Other Disclosures

1. Disclosure of Accounting Treatment: The disclosure relating to accounting treatment has been mentioned in Note No. 22: Significant Accounting Policies and Notes to Accounts of the Audited Financial Statement for the FY ended March 31, 2026 enclosed herein below. The same has not been explained under this disclosure to avoid repetition of information.

2. Disclosures with respect to Demat Suspense Account / Unclaimed Suspense Account: There are no shares lying in the Demat Suspense Account.

3. Disclosure of certain types of agreements binding listed entities: The Company has not entered into any such agreements which requires disclosures under clause 5A of paragraph A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time.