Inspirisys Solutions Ltd Management Discussions

ANNEXURE - II

A. INDUSTRY STRUCTURE AND DEVELOPMENT

Global Economic overview

The global economy in FY 2025-26 operated in an environment marked by multiple concurrent challenges, including elevated interest rates, persistent inflationary pressures, geopolitical conflicts, trade disruptions, and uneven recovery across regions. According to the International Monetary Fund, global GDP growth was projected in the range of approximately 3.0%-3.2% for 2025, with baseline expectations of around 3.1%-3.3% for 2026, although recent assessments indicate increasing downside risks to these projections. Developed economies continued to grow at a moderate pace, while emerging markets remained comparatively stronger, supported by domestic demand, infrastructure investments and digital adoption. However, elevated borrowing costs, currency volatility, trade policy uncertainty and supply chain realignment contributed to a cautious global business environment.

The global economic landscape was further impacted by escalating geopolitical tensions, particularly the ongoing conflict involving the United States and Iran in the Middle East. This remained an additional risk factor for economies that were still managing inflation, interest rate and supply chain pressures.

In this context, regional economic trends reflect the broader global slowdown. The U.S. economy is projected to grow at a moderate pace of approximately 1.9% to 2.2% in 2026; however, the probability of a recession over the next 12 months has increased, as indicated by S&P Global, reflecting growing concerns around the sustainability of current economic momentum. For businesses, supply chain disruptions and input cost pressures pose challenges to investment cycles, including AI-led capital expenditure. At the same time, rising input costs and shortages of intermediate goods increase the risk of a slower-than-expected recovery in manufacturing, potentially impacting industrial output and supply chain stability across sectors.

Despite the broader macroeconomic caution, global IT spending remained resilient. Gartner estimated worldwide IT spending at approximately USD 5.4 trillion in 2025, with continued growth expected in 2026. Enterprise technology investments were increasingly directed towards efficiency, automation, cloud optimisation, cybersecurity, data infrastructure and artificial intelligence.

In summary, this environment translates into a more selective demand landscape. While discretionary spending may remain constrained, investments linked to infrastructure modernisation, cybersecurity, cloud optimisation and AI-led efficiency are expected to sustain. At the same time, customer expectations around cost efficiency, measurable outcomes and faster execution are likely to influence deal cycles and pricing dynamics. Looking ahead, the global economic outlook remains cautiously optimistic but subject to significant downside risks. Growth is expected to stabilize over the medium term; however, its trajectory will depend on the evolution of geopolitical conflicts, trade and tariff policies, energy market stability, and the pace of monetary policy normalization. Inspirisys will continue to align its capabilities to these evolving requirements while maintaining a disciplined approach to growth and execution.

Indian Economy

The Indian economy demonstrated resilience during FY 2025-26, sustaining its position as one of the fastest- growing major economies despite global uncertainties and tightening financial conditions. GDP growth was estimated at approximately 6.5% - 7.0%, as per the Ministry of Statistics and Programme Implementation, supported by robust domestic demand, strong services sector performance, and continued public capital expenditure. Inflation remained contained within the Reserve Bank of Indias target band, with recent readings around 3.4% - 4%, contributing to relatively stable financial conditions and supporting continued investments across sectors.

Indias growth continues to be anchored in domestic demand, with consumption and investment accounting for nearly 70% of economic activity. This has provided a stable foundation amid global volatility, supported by ongoing policy reforms and a strong pipeline of investments across infrastructure, manufacturing, and digital sectors. Reflecting sustained investor confidence, cumulative gross foreign direct investment inflows reached approximately USD 1.14 trillion since April 2000, with continued momentum in recent periods.

Industrial and innovation indicators also remained positive. The HSBC India Manufacturing PMI stayed in expansionary territory at 55.0 in December, indicating stable demand and production activity.

The financial services sector continued to expand, supported by improved asset quality, steady credit growth, and increasing digitization. The sector is projected to nearly double its profits by FY30, driven by growth in retail credit, payments, wealth management, and insurance, with NBFCs expected to grow at approximately 16% annually. This expansion is increasingly enabled by technology, with financial institutions adopting advanced AI-led solutions, including "agentic AI," to enhance efficiency, risk management, and customer engagement. AI-driven interventions are expected to significantly reduce operational timelines, while generative AI is projected to enhance banking operations by up to 46%, reinforcing the role of technology in financial sector transformation.

Government-led capital expenditure and digital initiatives continued to support infrastructure development and connectivity. Digital public infrastructure remained a key enabler, with Unified Payments Interface (UPI) transactions exceeding 200 trillion annually, reflecting the scale of digital adoption and integration of technology into economic activity. Enterprise technology adoption also continued to accelerate across industries, supported by private sector investments and government initiatives such as Digital India. Cloud adoption grew at over 20% annually, while the expansion of Global Capability Centers (GCCs), with over 1,600 centers employing more than 1.6 million professionals, reinforced Indias position as a global hub for technology development and innovation. These macroeconomic and structural trends supported steady growth in the technology sector. Indias IT and business services industry reached approximately USD 245-250 billion in revenue, as reported by NASSCOM, contributing nearly 7.5%-8% to GDP and employment. Digital services remained the primary growth driver, contributing over 40% of incremental revenue, as enterprises prioritized investments in cloud, artificial intelligence, cybersecurity, and data analytics.

While domestic fundamentals remained strong, external headwinds persisted, such as geopolitical tensions in the Middle East, energy price volatility, and subdued demand from key markets like the United States and Europe. In addition, evolving trade policies, including tariff adjustments, along with tighter immigration norms in the United States, particularly around H-1B visa regulations, have introduced greater uncertainty for export-oriented sectors, including IT services, resulting in moderated growth and elongated deal cycles as global clients adopt a more measured approach to discretionary spending. Upcoming electoral cycles, including major state elections and by-elections across multiple constituencies, may further create a restrained investment environment, with investors deferring large capital commitments, resulting in a temporary slowdown in private investment and increased volatility in financial markets.

Overall, Indias economic outlook remains positive, supported by strong domestic demand, continued infrastructure investment, and sustained digital adoption. Technology is expected to remain central to this growth, with increasing demand for scalable, secure, and efficiency-driven solutions across sectors. For Inspirisys, India continues to remain a core growth market, particularly across infrastructure modernisation, banking transformation and enterprise digital adoption, aligned with the Companys strategic focus areas.

IT Industry Outlook & Overview

The IT industry has faced sustained headwinds over the past two years, as high inflation, elevated interest rates, and broader macroeconomic uncertainties led to moderated enterprise and consumer spending. These conditions resulted in reduced demand for technology products and services, declining market valuations, and workforce rationalization across the sector. Despite these challenges, the industry demonstrated resilience, supported by innovation, cost optimization, and a shift toward higher-value, outcome-driven offerings.

Global technology spending continues to reflect underlying structural strength. According to Gartner, worldwide IT spending is projected to reach approximately USD 6.15 trillion in 2026, representing growth of 10.8% over 2025. This expansion is being driven by strong investments in infrastructure, particularly in data centers and servers. This underscores the increasing importance of scalable, high-performance infrastructure to support next-generation digital workloads.

Artificial intelligence continues to be a key growth driver, with global spending expected to exceed USD 2 trillion in 2026. The focus has shifted from experimentation to execution, with organizations prioritizing scalability, reliability, and real-world impact across business functions.

In India, IT spending is expected to maintain strong momentum, with total expenditure projected to reach approximately USD 176.3 billion in 2026, reflecting growth of 10.6% over 2025, as per Gartner. The IT and Business Process Management (IT & BPM) sector continues to be a key contributor to economic growth, employment, and digital transformation. This momentum is reflected in a 16% year-on-year increase in hiring in April 2025, driven by rising demand for artificial intelligence, cloud modernization, and the expansion of Global Capability Centres (GCCs).

Spending on IT services in India is forecast to grow by 11.1% in 2026, with sustained double-digit growth expected over the medium term, supported by enterprise investments in infrastructure-as-a-service (IaaS), consulting, and application modernization. Software spending is projected to grow by 17.6%, reaching approximately USD 24.7 billion, driven by increased adoption of AI-enabled applications and modern digital platforms. This highlights the growing role of technology as a strategic enabler across industries.

India is set to emerge as one of the fastest-growing AI markets, with its AI sector projected to reach US$20-22 billion by 2027, at a CAGR of 30%. Government initiatives continue to play a supportive role, with the Union Budget FY 2025 - 26 allocating USD 232 million for AI adoption and infrastructure, and USD 58 million for a Centre of Excellence in AI for Education to enhance digital skills, support personalized learning, and strengthen the innovation ecosystem.

Overall, the IT industry is transitioning toward a more stable, growth-oriented phase, supported by sustained demand for digital transformation and efficiency-led investments.

B. OPPORTUNITIES & THREATS

In an environment defined by accelerated digital adoption and evolving enterprise priorities, the IT services industry continues to present significant opportunities driven by the need for agility, scalability, and operational efficiency. Organisations across sectors are increasingly investing in modernisation of technology infrastructure, cloud, automation, cybersecurity, data-led solutions and artificial intelligence, while also strengthening compliance and governance frameworks. Increased regulatory focus, particularly in the banking and financial services sector, is driving demand for secure, compliant and scalable technology solutions, while the shift towards consumption-based technology models is further expanding demand for integrated and outcome-driven services.

In this context, Inspirisys Solutions Limited is positioned as an integrated digital transformation and IT services provider, with expertise spanning IT Infrastructure Solutions, Cloud Enablement, Enterprise Security, Banking Solutions, and Product Engineering & Development. With a strong presence across India and select international markets, supported by its global parentage and domain expertise, the Company continues to strengthen its capabilities across core service lines, including infrastructure services, banking technology solutions, product engineering, and emerging technology-led offerings. Its presence across key industries, including BFSI, telecommunications, manufacturing, healthcare, and the public sector, enables it to address diverse enterprise requirements, positioning itself as a trusted partner in enterprise transformation journeys. Furthermore, Indias growing position as a global technology hub, supported by rising enterprise technology spending and the expansion of Global Capability Centres, creates a favourable demand environment, enabling the Company to scale operations and expand into new markets through its global delivery capabilities.

While the opportunity landscape remains strong, the Company faces certain challenges inherent to the IT services industry. A competitive environment, marked by large global players and specialized niche firms, continues to exert pressure on pricing and margins, particularly in commoditized segments. Macroeconomic uncertainties, including global economic fluctuations, geopolitical tensions, and evolving trade policies, may impact technology spending and delay decision-making and project execution.

Rapid technological advancements necessitate continuous investments in upskilling, innovation, and capability building, and the inability to keep pace with emerging technologies may affect the Companys competitive positioning. Additionally, rising cybersecurity threats and evolving regulatory requirements increase the need to ensure data protection and compliance. Talent acquisition and retention in high-demand skill areas such as artificial intelligence, cloud, and cybersecurity also remain key challenges, alongside maintaining operational efficiency and financial discipline. Dependency on OEM ecosystems, partner pricing, supply timelines and customer budget cycles may also influence execution, margins and revenue visibility in certain business lines.

Overall, the Companys growth strategy is anchored in modernization, with a strong focus on building scalable, secure, and agile solutions aligned to business needs. By aligning its service portfolio with enterprise priorities and emphasizing outcome-driven delivery, Inspirisys is well positioned to leverage growth opportunities through its deep domain expertise while effectively navigating industry challenges, strengthening its position as a trusted partner in enterprise digital transformation.

IT Infrastructure, Cloud and Security

Artificial intelligence is driving a significant increase in demand for compute capacity, prompting organizations to accelerate investments in digital infrastructure. Across global data centers, large-scale deployments of servers are required to support foundation models and machine learning applications, creating sustained demand for advanced processors, memory, storage, and energy resources. Global data centre infrastructure is expected to require significant capital investment by 2030, with AI- enabled data centres accounting for a major share of this expansion.

In parallel, India is witnessing rapid progress in its digital and AI ecosystem, supported by strong enterprise adoption and policy-level initiatives. The countrys artificial intelligence market is projected to reach approximately USD 20 - 22 billion by 2027, growing at a CAGR of around 30%, positioning India among the fastest- growing AI markets globally.

Cloud adoption continues to be a key enabler of this transformation. The global public cloud services market is projected to reach approximately USD 1.19 trillion by 2026 and exceed USD 2 trillion by 2030, growing at a CAGR of over 15%. In India, the public cloud market - including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) - is expected to expand at a faster pace, with revenues projected to reach USD 30.4 billion by 2029, growing at a CAGR of 22.6%, as per International Data Corporation. This growth is driven by enterprises increasingly leveraging cloud platforms to modernize legacy systems, improve operational efficiency, and accelerate digital service delivery.

Organizations are adopting cloud-based solutions to enhance business agility, enable faster deployment cycles, and support evolving customer and regulatory requirements. The demand is particularly strong for managed infrastructure services, scalable compute and storage solutions, and SaaS-based applications, including collaboration tools, content services, and core business platforms delivered through flexible, consumption-based models.

Understanding the overall requirements and market dynamics, the Government of India has introduced measures to promote data center development through policy support, fiscal incentives, and long-term tax benefits aimed at positioning the country as a global digital infrastructure hub. A key policy initiative under the Union Budget 2026 - 27 provides a significant tax holiday for eligible foreign cloud service providers operating through India-based data centers, extending up to 2047, to attract large-scale global investments and support infrastructure localization.

The expansion of digital infrastructure and cloud ecosystems has also increased the importance of cybersecurity. As organizations scale digital operations and manage growing volumes of data, the risk landscape is becoming more complex, driven by the increasing sophistication and frequency of cyber threats.

In India, end-user spending on information security is projected to reach approximately USD 3.4 billion in 2026, reflecting growth of 11.7% over the previous year, according to Gartner. Security software is expected to remain the largest and fastest-growing segment, with enterprises prioritizing investments in infrastructure protection, cloud security, and comprehensive risk management frameworks.

These trends in digital infrastructure expansion, cloud adoption, and rising cybersecurity requirements are closely aligned with Inspirisys core capabilities.

Banking Solutions

The global banking landscape in 2026 remains "stable but strained," shaped by moderated growth, declining interest rates, and accelerated technology adoption. While profitability remains steady, banks are increasingly focusing on diversifying revenue streams and improving operational efficiency to offset pressure on traditional interest margins. At the same time, the industry is undergoing a structural shift, driven by the adoption of artificial intelligence, the emergence of agentic AI in operations, tokenization of assets, and the growing emphasis on delivering hyper-personalized customer experiences.

Customer engagement remains a key focus, with institutions significantly enhancing digital capabilities. Around 96% of banks are prioritizing online channels, while 95% are investing in mobile platforms. There is also a growing emphasis on conversational interfaces, such as chatbots and virtual assistants, to reduce friction and improve service efficiency. Meanwhile, the global core banking solutions market continues to expand, with its size estimated at USD 16 - 19 billion during 2024 - 2025 and is projected to grow at a CAGR of 10% - 19%, reaching approximately USD 40-80 billion by 2030-2032.

Artificial intelligence is transitioning from a conceptual focus to a core operational enabler. Around 61% of financial institutions identify generative AI as a top investment priority, while 57% view it as critical to long-term relevance. Adoption is most advanced in cybersecurity and fraud management, with over 80% of institutions running pilots or live implementations and more than 90% reporting similar progress in fraud detection. However, realizing AIs full potential requires strong data foundations, prompting banks to address challenges related to data privacy and risk management. Operational resilience has become a critical priority, with approximately 75% of institutions reporting increased cyberattacks. In response, 89% are increasing cybersecurity budgets, 91% consider current investments sufficient and 77% are conducting more frequent audits. Meanwhile, payments modernization is moving beyond compliance to enhance functionality and customer value, with priorities including card upgrades, open banking, improved digital channels, instant cross-border payments, and AI-driven and embedded finance capabilities.

In India, the banking sector is experiencing strong growth, supported by rising financial inclusion, digital adoption, and expanding credit demand. Assets under management are projected to reach approximately USD 1.2 trillion by 2030, growing at a CAGR of around 14%, while credit growth remains above 12%. Digital payments continue to scale rapidly, with UPI transactions exceeding 20 billion per month, reflecting widespread adoption of digital financial services.

At the same time, the regulatory environment is becoming more stringent, driven by increased oversight from the Reserve Bank of India and a broader global focus on governance and risk management. This is creating a growing need for robust compliance and risk management solutions across financial institutions.

In response to evolving regulatory and industry requirements, the Company has developed Komply360, an AI-based regulatory compliance management solution that enables financial institutions to proactively monitor compliance, streamline reporting, and enhance risk visibility.

Building on this, Inspirisys continues to strengthen its Banking Solutions portfolio, structured around key pillars including Core Banking Solutions, Government Business Suite, and Komply360, aligning closely with the needs of modern financial institutions. Leveraging deep domain expertise and experience in delivering mission-critical systems, and supported by long-standing relationships across public, private, cooperative, and small finance banks, the Company provides technologically advanced, operationally effective solutions that support core banking modernization, improve transaction processing, and deliver secure, seamless banking experiences across channels.

To remain agile, the Companys Strategic Innovations team focuses on scaling digital operations, enhancing resilience and addressing evolving regulatory and risk requirements. The Company is also expanding its presence in overseas markets, particularly across South Asia, while integrating artificial intelligence capabilities into its offerings and exploring strategic partnerships to drive innovation. Through these initiatives and continued investment in modular, scalable solutions, Inspirisys is strengthening its position in next-generation banking and digital financial ecosystems.

Product Engineering and Development

The global Product Engineering Services (PES) market continues to witness steady growth, supported by the accelerating pace of digital transformation and the increasing adoption of software-defined products. This growth is driven by the integration of advanced technologies across key sectors such as manufacturing, automotive, and healthcare, as enterprises increasingly outsource product engineering functions to accelerate development cycles, enhance innovation, and improve competitiveness.

The adoption of artificial intelligence and automation is reshaping product development across the value chain. Organizations are embedding intelligent technologies into products and production processes to enhance performance, optimize costs, and strengthen lifecycle management. At the same time, cloud-based engineering platforms are gaining traction, offering scalable, collaborative environments that support realtime data sharing, faster testing cycles, and streamlined development across geographies.

Indias technology industry continues to demonstrate strong growth momentum, with total revenue expected to approach USD 300 - 315 billion in FY2026. Software products remain a smaller but steadily growing segment within this broader ecosystem, supported by global expansion and innovation-led capabilities. Indias IT exports, including IT services, BPM and engineering R&D, reached around USD 224 billion in FY2025 and beyond, with exports continuing to account for over 65% of total industry revenue. Looking ahead, export growth is expected to remain steady, supported by sustained global demand for digital transformation, artificial intelligence, and engineering services, despite near-term global economic uncertainties.

Against this backdrop, Inspirisys Product Engineering and Development (PeD) division plays a key role in supporting enterprise transformation. The division offers capabilities across cloud, data science, automation, artificial intelligence, machine learning, analytics, and testing and test automation, enabling organizations to modernize product ecosystems and improve performance. By aligning its capabilities with evolving technology trends and client requirements, the Company supports enterprises in enhancing operational efficiency, accelerating innovation, and delivering scalable, future- ready solutions in a dynamic digital environment.

C. HUMAN RESOURCE MANAGEMENT

The business environment continues to evolve rapidly, placing increasing emphasis on building agile, skilled, and resilient workforces. At Inspirisys Solutions Limited, human resources remain central to strengthening operational readiness and supporting sustainable growth. In line with evolving industry requirements, the Company continues to focus on enhancing workforce effectiveness through a combination of technology adoption, capability development, and employee-centric practices.

A key priority is the integration of artificial intelligence into HR processes, enabling automation of routine activities and allowing greater focus on strategic areas such as talent development, workforce planning, and employee experience, thereby improving efficiency and aligning HR functions more closely with business objectives. In parallel, the Company is strengthening its workforce planning frameworks to address current and future skill requirements, ensuring optimal talent deployment. Technology continues to play a critical role in enhancing HR operations, with ongoing investments in HR systems to automate processes, leverage people analytics for improved decision-making, and streamline employee lifecycle management. Digital initiatives across recruitment, onboarding, payroll, compliance, and learning management are further enabling efficient, data- driven HR practices.

During the year, the Company initiated alignment of its compensation structure with the applicable provisions of the new Labour Codes. The transition was supported by structured employee communication, targeted outreach and clarification sessions to help employees understand the changes, address their queries and appreciate the longterm benefits of the revised compensation framework. Capability development remains a critical focus area, with structured technical training and cross-functional learning initiatives designed to enhance workforce adaptability and reduce dependency on specific skill sets. These programs are aimed at building expertise across key domains such as cloud, cybersecurity, data engineering, and artificial intelligence, enabling employees to respond effectively to evolving technology and business needs. This approach also supports knowledge retention and helps mitigate attrition-related risks.

Leadership and managerial development continue to receive focused attention, with initiatives aimed at strengthening competency frameworks, enhancing performance management practices, and building change management capabilities. Manager enablement programs are aligned to support team development, succession planning, and improved employee engagement, ensuring stronger alignment between individual contributions and organizational priorities.

Organizational culture also plays a vital role in driving performance. The Company continues to foster a culture centred on accountability, collaboration and continuous improvement, with a focus on embedding these values into day-to-day operations. During the year, the Company was certified as a "Great Place to Work", reflecting its continued focus on building a high-trust, inclusive and employee-centric workplace. The Great Place to Work survey recorded an overall employee engagement score of 85%, with strong scores across areas such as justice, pride, competence, leadership behaviour, credibility, communication and team culture. These initiatives contribute to improved employee engagement and support consistent delivery outcomes. Demand for niche skills, particularly in artificial intelligence, cloud and cybersecurity, continues to outpace supply, requiring focused talent acquisition, reskilling and retention strategies. The Company is also focused on improving workforce productivity and optimising cost structures through better resource utilisation, automation and skill alignment. The industry is also witnessing selective workforce rationalisation and restructuring in certain areas, driven by changing demand patterns, automation and the need for improved cost efficiency.

The Company remains committed to providing a safe, inclusive, and respectful workplace. It continues to comply with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company continues to maintain a POSH Policy and an Internal Complaints Committee to ensure fair and timely redressal of complaints.

The Company continues to align workforce capabilities with delivery requirements, ensuring optimal deployment, improved utilisation and readiness to support project execution across business lines. Focus is also on reskilling and multi-skilling initiatives to enable workforce mobility across technologies and reduce dependency on niche skill sets. Targeted retention initiatives and career development frameworks are being strengthened to retain high-performing talent. HR continues to work closely with business teams to balance delivery commitments with cost efficiency, ensuring sustainable workforce structures. Going forward, the Company will continue to focus on strengthening technical capabilities, enhancing workforce agility, and improving employee engagement, supporting sustained growth and organizational resilience in a dynamic business environment.

D. FOCUS AREAS OF THE COMPANY

Inspirisys continues to prioritize high-value, high- margin service offerings within India while strategically expanding its offshore business footprint. The Company is actively collaborating with customers to identify new opportunities across emerging areas of digital transformation, catering to both private enterprises and public sector undertakings. With technology innovation at the core of its strategy, Inspirisys is investing in artificial intelligence and machine learning as key drivers of future growth. These investments, combined with domain expertise, enable the Company to deliver scalable and outcome-driven solutions aligned to evolving enterprise requirements.

In parallel, Inspirisys has strengthened its Infrastructure Services portfolio, recognizing the critical role that robust IT infrastructure plays in enabling digital transformation.

The Company offers a comprehensive range of solutions spanning cloud computing, network security, data management, and enterprise-grade infrastructure, helping organizations enhance agility and build resilience. With the evolving threat landscape, cybersecurity capabilities are deeply embedded within these offerings, including identity and access management, advanced threat detection, endpoint protection, and threat intelligence services to safeguard digital assets. The Company is also strengthening its capabilities in infrastructure modernisation, hybrid cloud adoption and managed services, aligned to enterprise demand for scalable and consumption-based IT models.

Across both domestic and international markets, Inspirisys delivers an integrated portfolio of services that aligns technology with business objectives. Its integrated approach enables the Company to address evolving enterprise requirements across infrastructure, applications and digital transformation initiatives.

In the banking sector, Inspirisys has built strong domain expertise through long-standing partnerships with financial institutions. Through core banking solutions, digital platforms and regulatory technology offerings, the Company enables secure, compliant, and future-ready operations. These capabilities are further strengthened through IP solutions such as Government Business Suite and Komply360, supporting compliance, management of government payments and receivables and digital transformation requirements across Banking institutions. As a CMMI Level 5 certified Company, Inspirisys demonstrates a strong commitment to process excellence and continuous improvement, with these practices embedded across operations to ensure consistent service quality, robust governance, and high levels of customer satisfaction.

Overall, Inspirisys is strengthening its position as a technology partner by integrating advanced technologies such as AI, machine learning, cybersecurity, and resilient infrastructure solutions. With a focused approach on core service lines, deep expertise in banking and government sectors, and continued investments in next-generation capabilities, the Company is well positioned to drive innovation, enhance resilience, and support long-term growth in a dynamic global environment.

E. BUSINESS ANALYSIS BY DIVISION

Inspirisys offers a comprehensive portfolio of services across Infrastructure Solutions, Banking Solutions, Product Engineering and Development, and Warranty Management, enabling it to address diverse enterprise needs across industries.

The IT Infrastructure Division delivers end-to-end IT solutions that support digital transformation through cloud services, data center modernization, network and security solutions, and workplace automation. With a strong focus on scalability, agility, and security, the division helps organizations modernize their IT environments while improving operational efficiency The division is strengthening capabilities in automation, monitoring and analytics to improve service delivery, operational visibility and response times. Strengthened by strategic partnerships, the division is well-positioned to meet the growing technology demands of clients. However, the division continues to operate in a competitive environment with pricing pressure in certain segments, requiring a continued focus on cost optimisation, execution efficiency and service differentiation.

The Product Engineering and Development division focuses on building scalable and future-ready solutions using modern software development practices. With capabilities across cloud, automation, artificial intelligence, analytics, DevOps and testing, 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 improved product performance. The division also supports engineering engagements in network and infrastructure domains, including testing, automation and defect triage for enterprise platforms, enabling improved product quality and faster issue resolution. The focus remains on selective, capability-led engagements, with continued investment in automation and AI-driven engineering use cases.

The Banking Solutions division offers domain-focused, technology-driven solutions tailored to the evolving needs of financial institutions. With strong relationships across public and private sector banks, the division delivers services in areas such as digital lending, compliance management, core banking implementation, and risk mitigation. Its proprietary IP product, GBS, provides scalable and secure solutions for remittances and the management of government payments and receivables. Additionally, a newly developed regulatory compliance platform, Komply360, supports banks in navigating complex regulatory environments. A dedicated innovation team further strengthens the divisions focus on continuous product development and transformation along with overseas market penetration. The division continues to benefit from strong domain expertise and recurring engagement opportunities, while remaining focused on scaling IP-led offerings and improving solution adoption.

The Warranty Management Services division focuses on optimizing the after-sales lifecycle for OEMs and service providers. It provides integrated services covering claims processing, SLA tracking, call center coordination, reverse logistics, and spare parts inventory management. By streamlining these processes, the division enhances operational efficiency, reduces turnaround times, and improves overall customer satisfaction.

With a balanced portfolio across core service lines and domain expertise, Inspirisys is well-positioned to support enterprises in their digital transformation journeys. Its focus on innovation, quality, and compliance, combined with robust technology capabilities, enables the delivery of secure, scalable, and value-driven solutions. By continuously adapting to changing market needs, investing selectively in capability building and strengthening IP- led offerings, the Company continues to enhance its positioning across key segments while navigating a competitive and dynamic market environment. Inspirisys remains a trusted partner for organizations navigating the complexities of the digital landscape.

F. RISK MANAGEMENT

The Board of Directors of your Company continue to provide 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 evaluate the risks associated with its 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 2026		Year ended 31 March 2025
	in Lakhs	%	in Lakhs	%
Revenue
Revenue from operations	47,588	98%	38,815	98%
Other income	1,117	2%	944	2%
Total Revenue	48,705	100%	39,759	100%
Expenses
Material / Service Costs	15,240	35%	8,323	23%
Employee Benefit expense	12,631	29%	12,000	33%
Subcontract Charges	11,983	28%	11,616	32%
Other expenses	3,681	8%	4,095	11%
Total expenses	43,535	100%	36,034	100%
EBITDA	5,170	11%	3,725	9%
Finance costs	774	2%	876	2%
Depreciation and amortization expense	541	1%	539	1%
Profit / (loss) before tax and exceptional items	3,855	8%	2,310	6%
Exceptional items	381	1%	0	0
Profit / (loss) before tax	3,474	7%	2,310	6%
Tax expense (including deferred tax credit)	(412)	(1%)	(333)	(1%)
Profit / (loss) for the year	3,886	8%	2,643	7%
Profit from discontinued operations (net of tax)	212	0	530	1%
Profit for the year	4,098	8%	3,173	8%
Other comprehensive income for the year, net of tax	(1,173)	0	(249)	0
Total comprehensive income for the year	2,925	6%	2,924	7%
Minority Interest	0	0	0	0
Total comprehensive income after Minority Interest	2,925	6%	2,924	7%

H. REVENUE ANALYSIS

BUSINESS MIX	FY 2026	%	FY 2025	%
SI - System Integration	15,926	34%	8,669	22%
Services	30,998	65%	29,402	76%
WMS - Warranty Management Services	664	1%	744	2%
TOTAL	47,588	100%	38,815	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. 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.

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 provided by CAC Holdings Corporation, Japan, the Holding Company. The Company obtained sanction of working capital limits from an Indian bank without any Corporate Guarantee.

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 MAT Credit Entitlement 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 :

in lakhs

Consolidated Balance Sheet of Inspirisys Solutions Limited
Particulars	As at 31 March 2026	As at 31 March 2025
ASSETS
Non - Current assets
Property, plant and equipment	291	407
Goodwill	0	0
Right of Use assets	339	449
Other Intangible assets	338	246
Intangible asset under development	0	193
Financial assets
- Trade receivables	0	0
- Other financial assets	761	477
Deferred tax assets	2,149	1,032
Income tax assets (net)	2,414	2,140
Other non-current assets	420	151
	6,712	5,095
Current assets
Inventories	286	327
Financial assets
- Investments	8,682	4,378
- Trade receivables	13,795	8,478
- Cash and cash equivalents	826	2,566
- Other bank balances	505	908
- Other financial assets	381	702
Other current assets	4,731	4,254
Discontinued operations	0	2
	29,206	21,615
Total assets	35,918	26,710
Consolidated Balance Sheet of Inspirisys Solutions Limited
Particulars	As at 31 March 2026	As at 31 March 2025
Equity
Equity share capital	3,962	3,962
Other equity	6,059	1,891
	10,021	5,853
Non - Current liabilities
Financial liabilities
- Borrowings	7,800	7,974
Lease liability	169	253
Provisions	442	64
	8,411	8,291
Current liabilities
Financial liabilities
- Borrowings	95	10
Lease Liability	183	213
- Trade payables	9,942	4,275
- Other financial liabilities	3,673	3,418
Other current liabilities	3,421	4,410
Provisions	172	232
Discontinued operations	0	8
	17,486	12,566
Total equity and liabilities	35,918	26,710

Key Ratios on Standalone basis

Description	U/M	Year ended		Remarks
		31-Mar-26	31-Mar-25
Debtors Turnover	Days	104	78	Increase is due to higher sales in the fourth quarter of 2026 compared to 2025.
Inventory Turnover	Days	2	3	Inventory turnover days is reduced compared to Last year.
Interest Coverage Ratio	Times	15.86	5.32	Due to better profit the Company is able to fulfil its financial obligations.
Current Ratio	Times	1.66	1.73	Current Ratio is lower due to higher creditors than last year.
Debt Equity Ratio		0.1	0.1	Debt equity ratio is same as last year. No borrowings as ECB Loan has been repaid last year.
Operating Profit Margin	%	10%	9%	Improved revenue over last year has resulted in increase in operating Profit margin for FY26.
Net Profit Margin	%	8%	7%	Increase in margins as explained for Operating Profit section and MAT credit entitlement resulted in increase in NP Margin for FY26.
Return on Networth	%	21%	19%	Increase in Net profit is proportional to increase in Net worth helped to maintained RONW Ratio in FY 26.

Key Highlights

A. Equity and Reserves

The Equity Capital of the Company remained unchanged during the year

B. Borrowings

The other long-term borrowings and workings capital facilities with the Banks were lower consequent to effective collections and reduction in overall requirement of funds

C. Receivables Management

The Receivables which are classified as "Current" under the new Ind AS stands at 13,795 Lakhs as at 31^st March, 2026 as compared to 8,478 Lakhs as at 31^st March, 2025.

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.

	For and on behalf of the Board of Directors
Place: Chennai	Murali Gopalakrishnan	Rajesh R. Muni
Date: 08th May, 2026	Executive Director & Chief Executive Officer DIN: 08066529	Independent Director DIN: 00193527