Inspirisys Solutions Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENT Global Economic overview

Marked by cautious optimism, 2024 unfolded against a backdrop of persistent geopolitical tensions, divergent regional performances and evolving monetary and fiscal policies. Despite these headwinds, the global economy demonstrated relative stability, with growth holding firm though unevenly distributed across markets. According to the International Monetary Fund (IMF) World Economic Outlook released in January 2025, global growth is projected at 3.3% for both 2025 and 2026, marginally lower than the pre-pandemic average of 3.7%. While aggregate stability has been maintained, underlying vulnerabilities, including conflict-driven disruptions, financial volatility and structural shifts in trade and technology continue to influence the global growth landscape.

Central banks in both advanced and emerging markets continued to adjust interest rates to counter postpandemic inflationary pressures. These interventions contributed to a projected decline in headline inflation to 4.2% in 2025, and further to 3.5% by 2026. However, core inflation, especially in services, remains elevated in some regions, particularly the United States and the euro area. While some central banks have cautiously begun easing cycles, others remain vigilant, reflecting the varied pace and impact of monetary tightening globally.

Trade remained subdued throughout the year. The IMF revised its global trade volume growth forecast for 2025 to 3.2%, reflecting dampened external demand, increasing trade policy uncertainty and cautious corporate spending. Export activity, particularly from Europe and parts of Asia, faced persistent headwinds, with some instances of front- loaded trade in anticipation of tariff-related disruptions distorting normal demand cycles.

Due to external pressures, the United States economic growth is expected to slow significantly to 2.2% in 2025 and 1.3% in 2026. The fight against inflation is slower than expected and the Fed holds off on rate cuts in 2025 before beginning to cut again in 2026. In early April 2025, J.P. Morgan Research raised the probability of a recession in the United States to 60%, highlighting concerns around a policy mix increasingly at odds with sustaining the current expansion.

Geopolitical tensions continued to weigh heavily on the global outlook. Russias invasion of Ukraine exacerbated inflationary pressures, food insecurity and supply chain disruptions, while also fuelling broader geopolitical instability. The eventual resolution of this conflict is likely to have a material impact on future global economic stability.

Political developments shaped the policy environment in key economies. In India, General Elections in early 2024 were marked by cautious policy making and moderated public spending as the government prioritised fiscal discipline. Conversely, the lead-up to the 2024 US presidential election was characterised by heightened policy uncertainty, particularly concerning tariffs, fiscal strategies and the Federal Reserves interest rate trajectory. Political gridlock further delayed key budgetary and trade decisions, creating an unpredictable environment for businesses and investors.

The euro area experienced a modest recovery, with growth forecast at 1.0% in 2025, slightly below earlier projections. Persistent manufacturing weakness, elevated geopolitical risks and tight financial conditions weighed on economic sentiment, particularly in Germany and parts of Eastern Europe. Investment remained conservative, particularly in capital-intensive sectors. However, growth is expected to improve modestly to 1.4% in 2026, supported by easing financial conditions, a rebound in domestic demand and improved business and consumer confidence.

Financial conditions across the private sector presented a mixed picture. In the United States, household incomes and corporate earnings remained resilient, sustaining domestic demand. In contrast, emerging markets faced pressures from tighter credit, currency volatility and capital outflows. Since October 2024, financial conditions have tightened further in trade-sensitive economies, exacerbating challenges around debt servicing and exchange rate management.

A significant positive trend during the year has been the sustained rise in technology spending. According to Gartner, global IT spending is projected to grow by 9.8% in 2025, reaching USD 5.61 trillion. Organisations worldwide are prioritising investments in cloud infrastructure, AI- driven automation, cybersecurity and digital experience platforms, signalling a strategic shift from tactical cost management to long-term digital transformation.

In summary, 2024 witnessed steady yet uneven global growth amid geopolitical tensions, monetary policy shifts and subdued trade dynamics. Inflation is gradually easing, but core pressures persist, particularly in advanced economies. Regional disparities remain pronounced, with the United States facing a slowdown and elevated recession risks, the euro area recovering modestly and emerging markets grappling with financial tightening. However, the surge in global digital investment represents a key driver of future growth.

Looking ahead, 2025 is expected to be a year of cautious optimism and continued recalibration. While global growth is projected to remain stable, regional divergences and geopolitical volatility will continue to pose challenges. Emerging markets must navigate tighter financial conditions, while advanced economies seek to balance growth with inflation control. Amid these uncertainties, the acceleration in digitalisation is poised to underpin long-term resilience and competitiveness across industries, shaping the next phase of global economic recovery.

Indian Economy

Amid global uncertainties, India has emerged as the fastest-growing major economy, cementing its role as a central pillar of global growth. With a young demographic profile, expanding digital infrastructure and a supportive policy environment, the country continues to attract

investor confidence and global attention. The International Monetary Fund (IMF) has revised its forecast, projecting Indias real GDP growth at 7% for 2024, while the World Bank estimates a growth rate of 6.7% for 2025 - both well above the global average. This sustained momentum highlights Indias resilience and reinforces its long-term potential.

Key economic indicators support this positive outlook. Indias Manufacturing Purchasing Managers Index (PMI) rose to 58.1 in March 2025, the fastest pace in eight months, driven by robust domestic demand and rising production volumes. The services sector also demonstrated solid performance, playing a vital role in GDP growth. Supported by a thriving startup ecosystem, rapid digital transformation and increasing consumption across urban and semi-urban centres, services continue to drive employment and exports.

The financial sector remains stable, with a positive outlook from major credit rating agencies. Moodys has maintained a stable rating for the sector. Indias deepening credit markets, combined with digitisation initiatives in banking and financial services, are improving access to finance and enhancing operational efficiency across businesses and households.

Significant strides have also been made in building physical and digital infrastructure. Indias digital framework has notably contributed to economic growth, enhanced governance efficiency and promoted financial inclusion. To sustain this momentum and realise the vision of Viksit Bharat 2047, the focus must increasingly shift towards strengthening cybersecurity, expanding 5G networks and advancing digital literacy.

The digital economy is projected to cross USD 1 trillion by 2025. Initiatives under the Digital India programme have expanded access to high-speed internet, boosted digital payments and accelerated the adoption of online services. These developments have catalysed productivity improvements and provided a scalable foundation for innovation across sectors.

A defining feature of Indias current growth phase is the strengthening collaboration between the public and private sectors. The government has actively engaged industry stakeholders in refining regulatory frameworks, reducing compliance burdens and creating a more enabling business environment. These reforms have improved the ease of doing business, reduced operational costs and stimulated private investment across manufacturing, technology and services.

In conclusion, Indias economic outlook remains robust and forward-looking. The countrys ability to sustain momentum amid global headwinds reflects the strength of its domestic demand, the discipline of its macro economic management and the strategic foresight underpinning policy choices. As the global economy navigates an era of transition, India stands out not only for its growth figures but also for the structural reforms supporting this growth. Businesses operating in or partnering with India must recognise the opportunities arising from digital expansion, infrastructure development and policy reform, while remaining agile to evolving market dynamics. The path ahead calls for sustained collaboration between the government, industry and financial institutions to translate economic potential into enduring prosperity.

IT Industry Outlook & Overview

In 2024, the global economy faced significant headwinds, with recessionary trends in major markets prompting cautious corporate spending. Geopolitical tensions and conflicts exacerbated supply chain disruptions, impacting hardware availability and project timelines. Central banks worldwide adjusted monetary policies to combat inflation, which showed signs of stabilisation by the end of the year. Amid these challenges, the IT industry demonstrated notable adaptability, leveraging innovation to sustain growth trajectories.

According to Gartner, worldwide IT spending is projected to reach USD 5.61 trillion in 2025, marking a 9.8% increase from USD 5.11 trillion in 2024. This growth is primarily driven by strong investments in software and IT services, as organisations prioritise digital transformation initiatives to enhance operational agility and customer engagement.

The Software and IT Services segments are experiencing robust expansion, underpinned by surging demand for cloud technologies and AI-driven solutions. Businesses are increasingly adopting Software as a Service (SaaS) models and public cloud platforms to achieve scalability, resilience and cost efficiency. Investment in data centre infrastructure remains solid, supporting the surge in data generation and the need for efficient processing capabilities. Meanwhile, the continued expansion of remote work and global digital connectivity is driving investments in communication and collaboration technologies.

In the Indian context, IT spending is projected to grow by 11.1% in 2025, rising from USD 145.4 billion in 2024 to USD 161.5 billion. This trajectory reaffirms Indias expanding role in the global IT ecosystem, fuelled by accelerated digital adoption across sectors and sustained investment in emerging technologies. Within this trend, software spending is expected to grow by 16.9% to USD 17.9 billion, while IT services are anticipated to expand by 11.2% to USD 30.1 billion. These figures highlight the strength of Indias digital infrastructure and the increasing reliance on cloud, automation and next-generation platforms across both public and private sectors.

Chief Information Officers (CIOs) are prioritising investments in Generative AI (GenAI) and broader Artificial Intelligence (AI) solutions to drive innovation, enhance operational efficiency and sustain competitive advantages. The rising demand for AI capabilities is reshaping business models and strategic priorities, particularly around customer experience and intelligent automation.

According to IDC, worldwide spending on digital transformation is projected to reach USD 3.9 trillion by 2027, reflecting a compound annual growth rate (CAGR) of 16.1%. This underscores the strategic emphasis organisations are placing on integrating digital technologies to future-proof operations and create differentiated value in an increasingly digital economy.

The IT industry in 2025 is characterised by resilience and adaptability amid economic and geopolitical complexities. With strong momentum in IT spending globally and within India, the sector is well-positioned for continued expansion. Organisations are strategically investing in software, IT services, cloud platforms and AI-driven innovations to navigate evolving business environments and drive sustainable growth.

B. OPPORTUNITIES & THREATS

In an era defined by accelerated digital transformation, Inspirisys Solutions Limited is strategically positioned to enable organisations to achieve operational agility, technological resilience and scalable growth. The Companys capabilities span Infrastructure Solutions, Cloud Enablement, Enterprise Security, Banking Solutions and Product Engineering & Development, providing targeted, outcome-driven solutions aligned with evolving business needs. Inspirisys continues to serve key industries including BFSI, Telecom, Government/ PSUs, Manufacturing and Healthcare, where the demand for modernisation and cost-efficient innovation remains strong.

As businesses increasingly adopt cloud-native platforms, AI-infused applications and zero-trust security architectures, Inspirisys offerings are well aligned with these emerging priorities. The surge in investments towards intelligent automation, secure digital infrastructure and hyper-personalised experiences presents significant opportunities for Inspirisys to deliver differentiated value. By transforming enterprise IT ecosystems into leaner, smarter and more responsive environments, the Company enables organisations not just to adapt, but to lead.

However, the industry landscape is becoming increasingly competitive. Global technology service providers and digital-native entrants are driving rapid innovation, particularly in artificial intelligence, machine learning, edge computing and platform engineering. This is reshaping client expectations, with faster delivery, modular services and integrated support becoming baseline requirements. To maintain competitiveness, Inspirisys continues to invest in building engineering depth, strengthening cybersecurity leadership and expanding next-generation service capabilities. Organisations are now sharply focused on enhancing efficiency across infrastructure, applications and core business processes. Their goals increasingly centre on achieving not just digital transformation, but also cost leadership and sustained operational performance. In response, Inspirisys has evolved its service models by deepening strategic partnerships, refining delivery frameworks and embedding modular architectures, governance-led execution models and automation-first principles across engagements.

Modernisation remains a core pillar of the Companys growth strategy. Inspirisys develops scalable, secure and agile solutions that address real-world business challenges. Whether through cloud migrations, intelligent AI-infused banking systems or advanced endpoint protection, the Company leverages deep domain expertise

combined with digital fluency to deliver measurable business outcomes. Inspirisys remains committed to driving long-term value creation through purposeful innovation and customer-centric transformation.

IT Infrastructure, Cloud and Security

While global IT infrastructure trends continue to evolve India stands out for its accelerated digital adoption growing demand for AI-ready infrastructure and a sharp focus on operational resilience. Global IT spending is projected to reach USD 5.61 trillion in 2025, marking a 9.8% increase from 2024. This growth is underpinned by increasing enterprise reliance on managed services to reduce operational complexity, address security vulnerabilities and adopt scalable, cloud-native models.

According to the Cisco Global Cloud Index Report, more than 90% of all workloads are expected to be cloud- based by 2025, with cloud traffic accounting for 95% of total data centre traffic. Traditional data centre workloads are projected to decline, indicating a broader industry shift toward infrastructure outsourcing and hybrid environments that enable agility, modernisation and improved risk posture.

Global end-user spending on public cloud services is projected to reach USD 723.4 billion in 2025, up from USD 595.7 billion in 2024, as per Gartner. Organisations are increasingly adopting hybrid and multi-cloud environments, favouring service providers capable of seamless orchestration, compute flexibility and storage optimization. Within this, Compute as a Service leads adoptions, while Networking as a Service is emerging as the fastest-growing segment.

In India, the infrastructure landscape mirrors these global trends with accelerated investment in next-generation platforms. According to Gartner, spending on data centre systems in India is projected to reach USD 4.7 billion in 2025 - an 11.3% increase over the previous year, driven by rising enterprise demand for infrastructure that supports AI workloads and high-performance computing. As organisations scale their use of AI and data-intensive applications, the need for resilient, scalable and energy- efficient data centre infrastructure has intensified.

To meet this demand, major hyperscalers and domestic data centre providers are expanding their footprint in India through new facility investments and upgrades to existing infrastructure. These initiatives aim to deliver the compute power, storage capacity and security required across core sectors including BFSI, healthcare, telecom and manufacturing.

The Indian governments India AI Mission further reinforces this momentum, positioning the country as a strategic hub for digital innovation and compute infrastructure. As national and enterprise IT strategies evolve, investments are increasingly directed towards AI enablement, secure multi-cloud adoption and future-ready IT architectures. These shifts are not only influencing what enterprises invest in, but also how they design their IT ecosystems to enable long-term agility, compliance and innovation.

As enterprises accelerate their digital transformation journeys, Inspirisys is aligning its infrastructure services

to deliver future-ready, secure and scalable solutions. The cybersecurity domain, in particular, is expected to witness significant growth in 2025, fuelled by widespread hyper-digitisation across industries. With the increasing adoption of cloud platforms, IoT devices, remote work solutions and AI-driven systems, enterprise technology stacks are undergoing rapid transformation.

While this hyper-connected environment offers operational gains, it also expands the attack surface for cyber threats. From endpoint vulnerabilities and ransomware to sophisticated phishing and insider risks, businesses are increasingly exposed to multi-vector cyberattacks.

To address these evolving risks, Inspirisys is embedding proactive, business-aligned cybersecurity frameworks into its infrastructure offerings. By leveraging advanced threat detection tools, skilled cyber security talent and strategic partnerships, the Company aims to deliver integrated infrastructure and security solutions that support resilient transformation. This approach not only bridges legacy gaps with emerging technologies but also fortifies the digital foundation needed for long-term growth.

Banking Solutions

The global banking landscape continues to evolve as financial institutions prioritise operational efficiency, realtime customer engagement and digital-first experiences. This shift is driving increased demand for modern core banking platforms that enable agility, compliance and innovation. According to recent projections, the global core banking solutions market, valued at approximately USD 19.98 billion in 2025, is expected to reach nearly USD 59.69 billion by 2032, representing a robust CAGR of 16.9%. Growth is being fuelled by the modernisation of legacy systems, expansion of mobile capabilities and integration of advanced technologies aimed at streamlining operations and enhancing customer experience.

As digital adoption accelerates, core banking platforms are evolving beyond traditional transaction processing to offer a broader range of services. Financial institutions are increasingly embracing AI, data analytics and cloud-native infrastructure to optimise performance across branches, channels and customer touch points. The widespread adoption of smartphones and digital payment ecosystems further reinforces the need for real-time processing, intuitive interfaces and personalised financial services, particularly in high-growth markets.

Indias financial services sector reflects these global trends with even greater intensity. The countrys FinTech market, already among the worlds top three, is projected to reach USD 550.21 billion by 2030, growing at a CAGR of 30.55%. Within this, the digital lending segment is expanding rapidly and is expected to exceed USD 515 billion by the end of the decade. The increased adoption of mobile banking, AI-driven credit scoring and open banking frameworks is transforming how institutions lend, onboard customers and manage risk.

Inspirisys aligns closely with these industry shifts through its focused and future-ready Banking Solutions

portfolio. Structured around key pillars, Core Banking Solutions (Finacle), Government Business Module (GBM) and Government Business Suite (GBS), the Company continues to play a pivotal role in supporting the digital evolution of the Indian banking sector. Leveraging deep domain expertise and decades of experience in delivering mission-critical solutions, Inspirisys designs and deploys offerings that are both technologically robust and operationally effective.

With a strong suite of proprietary, IP-based solutions, Inspirisys enables financial institutions to modernise core platforms, enhance transaction capabilities and deliver secure, efficient banking experiences across digital and physical channels. Its well-established network of trusted relationships with numerous public, private, cooperative and small finance banks further strengthen its position in the sector.

To remain agile amid ongoing industry transformation, Inspirisys has established a Strategic Innovations team, focused on identifying emerging opportunities and providing structured support to financial institutions in their transformation journeys. Key priorities includes scaling digital operations, strengthening operations resilience and navigating evolving regulatory and risk landscapes.

Aligned with this vision, the Company is developing modular, scalable solutions that enhance institutional agility, support digital maturity and address complex requirements. These strategic investments reinforce Inspirisys position as a long-term technology partner for next-generation banking.

Product Engineering and Development

The global Product Engineering Services (PES) market is witnessing accelerated growth, driven by evolving customer expectations and intensifying competitive pressures. The digital product engineering services segment is forecast to grow at a 10.4% CAGR, reaching a market size of USD 354 billion by 2028. This growth reflects a broader shift as businesses across industries rethink engineering strategies to remain relevant and competitive.

A key enabler of this transformation is the strategic integration of technologies such as Artificial Intelligence (AI), Machine Learning (ML) and the Internet of Things (IoT) into core product development processes. These technologies are increasingly viewed not as optional enhancements but as foundational elements of next- generation products and platforms.

Within the PES market, application technology consulting services represent the fastest-growing segment, projected to expand at a 19% CAGR through 2028. Organisations adopting AI-driven automation, predictive analytics and connected systems are achieving measurable benefits, including improved design efficiency, faster time-to- market and enhanced customer satisfaction. With global AI investments projected to reach USD 200 billion by 2025, the innovation agenda is becoming increasingly technology-centric and intelligence-driven.

However, Indias IT sector faces emerging challenges. Rising tariffs, particularly in key markets such as the

United States, are expected to fuel inflationary pressures, affect deal cycles, delay project execution and dampen revenue growth. J.P. Morgan has flagged an elevated U.S. recession risk and heightened uncertainty in decision making, suggesting fiscal 2026 could be challenging for Indian IT firms. Consequently, the industry is expected to adopt a conservative stance in annual revenue growth forecasts, reflecting the cautious macro economic outlook.

Despite these headwinds, India continues to reinforce its position as a global technology and engineering hub. According to NASSCOMs Strategic Review 2025, the Indian technology sector is estimated to reach USD 283 billion in 2025, growing 5.1% year-on-year. Export revenues are expected to exceed USD 200 billion, while the domestic technology market is projected to expand by 7.0%, reaching USD 58.2 billion. These figures highlight the resilience of the sector, which remains focused on high-value services and future-ready innovation despite global economic volatility.

Organisations today are not merely adapting to digital disruption, they are proactively embedding advanced engineering capabilities into their operations. Whether refining product life cycles, adopting cloud-native architectures or automating quality assurance, businesses are increasingly partnering with specialists who offer a blend of deep domain expertise and technological agility. Against this backdrop, Inspirisys Product Engineering and Development (PeD) division plays a pivotal role in enabling enterprise digital transformation. The divisions comprehensive service portfolio spans Cloud Services, Data Science, DevOps, Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning (ML), Analytics and Testing & Test Automation, designed to help enterprises modernise their products, enhance performance and respond swiftly to market dynamics.

By aligning its capabilities with global technology trends and emerging client needs, Inspirisys supports organisations across geographies in enhancing operational efficiency, accelerating innovation and delivering intelligent, future-ready solutions. The engineering services are purpose-built to address the complexities of todays digital economy, equipping businesses to scale sustainably, innovate consistently and lead confidently in their respective markets.

C. HUMAN RESOURCE MANAGEMENT

The business environment continues to evolve rapidly, placing greater demands on organisations to build adaptable, resilient workforces. At Inspirisys, we recognise that human resources must play a central role in strengthening operational readiness and enabling sustainable growth.

In line with Gartners Top HR Priorities for 2025 and reflecting key trends in the Indian IT services market, the Company will place strategic emphasis on five focus areas: leadership and manager development, organisational culture, workforce planning, change management and HR technology. These priorities will guide the HR roadmap, with a sharper focus on deepening technical capabilities, improving talent acquisition quality and strengthening employee engagement to retain high-performing talent.

To drive workforce adaptability and minimise skill silos, Inspirisys will prioritise structured technical training and cross-functional learning programmes. These initiatives will build multi-domain expertise across critical areas such as cloud, cybersecurity, data engineering and AI, equipping employees to transition seamlessly as technology and business needs evolve. This investment will help safeguard institutional knowledge, mitigate attrition risks and maintain delivery excellence in a competitive market.

Recognising the growing pressure to meet short-term delivery targets while building long-term capability, HR will align workforce strategy closely with broader business goals. Strategic workforce planning will be integrated into operational frameworks to proactively address emerging skill needs and build workforce agility.

The Company will continue to drive employee retention by investing in leadership development, career growth frameworks and targeted engagement initiatives. Manager enablement programmes will be enhanced to support team development, succession planning and employee satisfaction, ensuring alignment with business needs at the ground level.

Technology will continue to be a key enabler. Inspirisys will continue to invest in HR technology enhancements, automate manual processes, enhance decision-making through people analytics and streamline employee lifecycle management. Digital initiatives across talent acquisition onboarding, compliance, payroll, learning management and workforce analytics will enable data- driven HR interventions, improve recruitment outcomes and strengthen regulatory compliance.

Inspirisys remains firmly committed to maintaining a safe, respectful and inclusive workplace. The Company will continue to uphold the mandates of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, through a gender- neutral POSH policy and by strengthening the Internal Complaints Committee (ICC) framework for fair and timely grievance resolution.

Looking ahead, Inspirisys HR strategy will focus on strengthening technical capability, enhancing operational agility and driving employee engagement to meet evolving business demands. These efforts will directly support growth, delivery excellence and organisational resilience in a competitive Indian IT services environment.

D. FOCUS AREAS OF THE COMPANY

Inspirisys continues to prioritise high-value, high- margin service offerings within India, while strategically expanding its offshore business footprint. Recognising the need for sustained investment, the Company is working closely with customers to identify new opportunities in emerging areas of digital transformation, targeting both private enterprises and public sector undertakings (PSUs). With technology innovation as a core focus, Inspirisys is investing in Artificial Intelligence (AI) and Machine Learning (ML), recognising these as key enablers of future growth. These investments, combined with deep domain expertise, enable the Company to deliver scalable, intelligent solutions tailored to the evolving needs of businesses across industries.

In parallel, Inspirisys has strengthened its Infrastructure Services portfolio, acknowledging the foundational role robust IT infrastructure plays in digital transformation. From cloud computing and network security to data management and enterprise-grade infrastructure, the Company provides comprehensive solutions that enable business agility and resilience. Given the growing threat landscape, cybersecurity capabilities are deeply integrated into infrastructure offerings, covering advanced threat detection, endpoint security and threat intelligence services to safeguard client digital assets.

Across both domestic and international markets, Inspirisys offers an integrated portfolio of services that align technology with business objectives. The ability to converge next-generation technologies with secure, scalable infrastructure enables the Company to meet the diverse and evolving demands of modern enterprises.

In the banking domain, Inspirisys has built strong domain expertise by partnering with financial institutions on transformative initiatives. From scalable infrastructure modernisation solutions to cyber security and enabling digital transformation through software solutions for banks, the Company serves as a trusted enabler of secure, compliant and future-ready banking operations. Established relationships with leading banking institutions continue to drive success in winning large-scale transformation deals aligned with the dynamic needs of the financial services sector.

Supporting these growth initiatives, Inspirisys achieved CMMI Level 5 certification reflecting its ongoing focus on process excellence and operational optimisation. Continuous improvement practices are deeply embedded across operations, ensuring consistent service quality, customer satisfaction and governance standards.

In conclusion, Inspirisys is advancing its position as a technology leader by integrating AI, ML, cybersecurity and resilient infrastructure solutions to help clients achieve operational excellence and digital security. With a growing offshore presence, strong expertise in banking and government sectors and sustained investment in next-generation technologies, Inspirisys is well-placed to drive innovation, resilience and long-term growth in an increasingly dynamic global environment.

E. BUSINESS ANALYSIS BY DIVISION

Inspirisys offers a comprehensive suite of services across Infrastructure Solutions, Banking Solutions, Product Engineering & Development and Warranty Management. The Infrastructure Management Business Division delivers end-to-end IT solutions that enable digital transformation through cloud services, data center modernisation, network and security solutions and workplace automation. With a focus on scalability, agility and security, the division helps enterprises modernise their IT environments while enhancing operational efficiency. Moving beyond traditional support services, the team is increasingly focused on high-end, value- driven offerings aligned to evolving business needs. By embedding cybersecurity into its core portfolio and strengthening strategic partnerships, the division is well- positioned to address the growing technology demands of clients worldwide.

The Product Engineering and Development business unit focuses on building scalable, future-ready solutions

through modern software development practices. With expertise in cloud-native application development, RPA, AI/ML integration, DevOps and analytics, the division supports clients in accelerating digital transformation. It provides end-to-end services from consulting and design to development and deployment, ensuring faster time-to- market and enhanced product performance. Leveraging agile methodologies and emerging technologies, the division caters to clients across industries while driving the growth of Inspirisys own IP-led solutions. This strategic focus positions the unit as a key enabler of innovation and long-term value creation.

The Banking Solutions business unit delivers domain- driven, technology-enabled offerings tailored to the evolving needs of financial institutions. With strong relationships across private and public sector banks, the division provides specialised services in digital lending, compliance management, core banking implementation and risk mitigation. A key differentiator lies in its proprietary IP products - GBM and the enhanced GBS, which offer scalable and secure solutions for remittances and management of government payments and receivables. In addition, a newly introduced compliance and risk mitigation application supports banks in navigating complex regulatory environments. To adopt continuous innovation, a dedicated core team has been established to identify and develop new product opportunities, reinforcing the divisions strategic emphasis on transformation, compliance and resilience. The Warranty Management Services business unit focuses on optimising the after-sales lifecycle for OEMs and service providers. It offers comprehensive process management across claims processing, SLA tracking, call center coordination, reverse logistics and spare parts inventory control. By ensuring seamless integration across these functions, the division drives higher operational efficiency, faster turnaround times and improved customer satisfaction.

With a diversified portfolio spanning Infrastructure Management, Banking Solutions, Product Engineering and Development and Warranty Management, Inspirisys is well-positioned to support enterprises in their digital transformation journeys. Its deep domain expertise, robust technology capabilities and commitment to innovation enable the Company to deliver secure, scalable and value-driven solutions. By continuously evolving to meet changing client needs, fostering a culture of quality and compliance and investing in strategic growth initiatives, Inspirisys remains a trusted partner for organisations navigating the complexities of the modern digital landscape.

F. RISK MANAGEMENT

The Board continues to provide the guidance to the Company in terms of ascertaining the risk factors as applicable to the Companys business and providing the direction to assess and mitigate the same. The Company periodically assesses the risks involved in the business and reports to the Board for them to take necessary steps in mitigating them.

G. DETAILED REVIEW OF FINANCIAL PERFORMANCE

The financial statements are prepared in compliance with the Companies Act, 2013 and Ind AS.

The following table gives an overview of the financial results of the company on a consolidated basis:

Particulars	Year ended 31 March 2025		Year ended 31 March 2024
	in Lakhs	%	in Lakhs	%
Revenue
Revenue from operations	38,815	98%	49,049	99%
Other income	944	2%	373	1%
Total revenue	39,759	100%	49,422	100%
Expenses
Material / Service Costs	8,323	23%	19,456	43%
Employee Benefit expense	12,000	33%	12,264	27%
Subcontract Charges	11,616	32%	9,717	21%
Other expenses	4,095	11%	4,339	9%
Total expenses	36,034	100%	45,776	100%
EBITDA	3,725	9%	3,646	7%
Finance costs	876	2%	1,055	2%
Depreciation and amortization expense	539	1%	458	1%
Profit / (loss) before tax	2,310	6%	2,133	4%
Tax expense	(333)	(1%)	497	1%
Profit / (loss) for the year	2,643	7%	1,636	3%
Profit from discontinued operations (net of tax)	530	1%	(1,270)	(3%)
Profit for the year	3,173	8%	367	1%
Other comprehensive income for the year, net of tax	(249)	-	107	-
Total comprehensive income for the year	2,924	7%	474	1%

H. REVENUE ANALYSIS

BUSINESS MIX	FY 2025	%	FY 2024	%
SI - System Integration	8,669	22%	21,337	43%
Services	29,402	76%	27,162	55%
WMS - Warranty Management Services	744	2%	1,186	2%
TOTAL	38,815	100%	49,685	100%

I. DEPRECIATION AND AMORTIZATION

The Company has been following straight-line basis of depreciation and has depreciated assets based on the rates mentioned in the Companies Act, 2013. In respect of application software, estimated useful life of the assets is taken as 7 years and has accordingly amortized the value of the software assets capitalized. The Company has impaired its Goodwill amounting to 542 Lakhs during the quarter and year ended 31st March, 2025. This Goodwill arose out of an acquisition of software business in the year 2011-12. The Company performed an impairment testing on the Goodwill for the year ended 31st March, 2025. Though the parameters of the valuation look favourable, the underlying factors Viz US foreign policy

Changes, political climate, Contractual uncertainties and shift in technologies, the management is of the opinion to impair the carrying value of Goodwill.

Adoption of Ind AS 116:

The lease liability is measured at the present value of the lease payments to be made over the lease term. Lessees accrete the lease liability to reflect interest and reduce liability to reflect lease payments made. The right of use asset is initially measured at the amount of the lease liability, adjusted for lease pre-payments, lease incentives received, lessees initial direct cost and an estimate of restoration, removal and dismantling costs. The related right of use asset is depreciated in accordance with the depreciation requirements of Ind AS 116.

J. FINANCING COSTS

The Company had obtained working capital loans from Japanese banks at a much lower cost on account of guarantees from CAC Holdings Corporation, Japan, the Holding Company. The Company obtained sanction of working capital limits from an Indian bank without any Corporate Guarantee. The finance cost at consolidated level is lower than last year due to reductoin in interest rates on existing loans and repayment of ECB loans on January, 2025.

K. TAXATION

The Company provided the tax under normal computation since the Company did not have any brought forwarded losses to be adjusted. The Company also recognised the Deferred Tax Assets during the year. Further on account of losses in the overseas subsidiaries no taxes are provided for the year under review for the overseas subsidiary companies.

The Consolidated Balance Sheet of Inspirisys Solutions Limited is given below :

Consolidated Balance Sheet of Inspirisys Solutions Limited

Particulars	As at 31 March 2025	As at 31 March 2024
ASSETS
Non-current assets
Property, plant and equipment	407	464
Goodwill	-	542
Right of Use assets	449	59
Other Intangible assets	246	299
Intangible asset under development	193	81
Financial assets
- Trade receivables	-	73
- Other financial assets	477	60
Deferred tax assets	1,032	-
Income tax assets (net)	2,140	3,091
Other non-current assets	151	1,199
	5,095	5,868
Current assets
Inventories	327	386
Financial assets	-	-
- Investments	4,378	-
- Trade receivables	8,478	9,818
- Cash and cash equivalents	2,566	4,771
- Other bank balances	908	1,137
- Other financial assets	702	679
Other current assets	4,254	3,573
Discontinued operations	2	61
	21,615	20,425
Total assets	26,710	26,293

Consolidated Balance Sheet of Inspirisys Solutions Limited

Particulars	As at 31 March 2025	As at 31 March 2024
Equity
Equity share capital	3,962	3,962
Other equity	1,891	(1,033)
	5,853	2,929
Non - Controlling Interests
Non - Current liabilities
Financial liabilities
- Borrowings	7,974	584
Lease liability	253	15
Provisions	64	87
	8,291	686
Current liabilities
Financial liabilities
- Borrowings	10	7,648
Lease Liability	213	54
- Trade payables	4,275	6,116
- Other financial liabilities	3,418	3,360
Other current liabilities	4,410	4,685
Provisions	232	267
Discontinued operations	8	547
	12,566	22,678
Total equity and liabilities	26,710	26,293

Key Ratios on Standalone basis

Description	U/M	Year ended		Remarks
		31-Mar-25	31-Mar-24
Debtors Turnover	Days	78	104	Decrease is due to better collections in the fourth quarter of 2025 compared to 2024.
Inventory Turnover	Days	3	3	Inventory coverage days is same as Last years.
Interest Coverage Ratio	Times	5.32	4.65	Due to better profit of the Company is able to fulfil its financial obligations.
Current Ratio	Times	1.73	1.3	ECB loans repayment in January 2025, helped to increase the Current Ratio for the year.
Debt Equity Ratio		00:01	0.4:1	ECB Loan Repayment in January 2025 helped to reduce the borrowings and Reduction in Working Capital borrowings resulted in reduction of Debt Equity Ratio.
Operating Profit Margin	%	9%	8%	Increase in services revenue has resulted in increase in operating Profit margin for finacial year 2025. The Revenue of finacial year 2024 includes low margin System Integration Business.
Net Profit Margin	%	7%	4%	Increase in margins as explained for Operating Profit section and Deferred Tax Recognition resulted in increase in NP Margin for finacial year 2025.
Return on Networth	%	19%	19%	Increase in Net profit is proportional to increase in Net worth helped to maintained RONW Ratio in finacial year 2025.

Key Highlights

A. Equity and Reserves

The Equity Capital of the Company remained unchanged during the year

B. Borrowings

The Long Term Borrowings of the Company with respect to External Commercial Borrowings came up for repayment during the financial year 2024-25 and the same was paid out of internal accruals in January 2025. This will bring down the finance cost for the Company. The other long-term borrowings and working capital facilities with the Banks were lower consequent to effective collections and reduction in overall requirement of funds

C. Receivables Management

The Receivables (before allowances for credit loss) which are classified as Current under the new Ind AS stands at 10,658 Lakhs as at 31st March, 2025 as compared to 15,625 Lakhs as at 31st March, 2024.

D. Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include change in Government regulations, tax laws, economic & political developments within and outside the country and such other factors.