Intense Technologies Ltd Management Discussions

Management Discussion and Analysis Report

1. Economic Overview and Outlook

1.1 The Global Economy

Financial year 2025-26 unfolded against a backdrop of moderate global growth accompanied by a marked structural shift in how enterprises allocate technology spending. In its July 2026 World Economic Outlook Update, the International Monetary Fund projected global growth of 3.0% for calendar year 2026, moderating from an average of approximately 3.5% observed across 2024 and 2025, with a recovery to 3.4% projected for 2027. The Fund also revised headline inflation upward to 4.7% for 2026 from 4.1% in 2025, noting that the disinflation trend in place since early 2024 had stalled, and pointed to continuing cost pressures across major economies through the year. The IMF characterised the global economy as caught between the crosscurrents of geopolitical conflict on the one hand and an accelerating technology investment cycle on the other, with the latter partly offsetting the drag from the former.

Set against this moderate growth environment, enterprise investment in artificial intelligence continued to expand at a pace well ahead of overall economic activity. Gartners May 2026 forecast placed worldwide Al spending at USD 2.59 trillion for calendar 2026, an increase of 47% over the prior year and an upward revision from its earlier estimate of USD 2.52 trillion, with infrastructure and platform investment accounting for the largest share of this growth. According to Fortune Business Insights, the global customer communication management (COM) software market is expected to expand from USD 3.42 billion in 2026 to USD 9.36 billion by 2034, registering a 13.4% CAGR over the forecast period. The market was valued at USD 3.02 billion in 2025, highlighting the continued acceleration in demand for enterprise communication management solutions.

1.2 The Indian Economy and Technology Sector

India remained among the fastest-growing major economies during the year, with the IMF projecting growth of 6.4% for 2026, supported by momentum in private consumption and services activity. Indias technology and digital services sector continued to expand ahead of the broader economy. According to NASSCOMs Technology Sector in India: Strategic Review 2026, released in February 2026, the Indian technology industry was estimated at USD 315 billion in revenue for FY 2025-26, growing at approximately 6.1% over a revised FY25 base of USD 297 billion, and crossing the USD 300 billion milestone for the first time. Of this, export revenue accounted for approximately USD 246 billion, while domestic technology spending grew at approximately 7.9%, outpacing export revenue growth for the second consecutive year.

NASSCOM described FY26 as a decisive inflection point at which artificial intelligence moved from experimentation to function-specific, scaled deployment, reshaping industry operating models. Al-linked revenues within the Indian technology sector were estimated in the range of USD 10 billion to USD 12 billion for the year. Notably, industry headcount grew by only 2.3% to approximately 6 million against revenue growth of 6.1%, evidencing a decisive shift away from linear, headcount-led growth towards platform and IP-led revenue —the model on which the Companys own business is built. NASSCOM further estimated that Indias digital economy now contributes approximately 12% to national GDP.

This trend has direct relevance for Intense Technologies, whose business sits at the intersection of enterprise communications, data governance, and Al-led customer engagement, each identified by NASSCOM among the faster-growing components of Indias domestic technology spending, and each an area in which the Company already has an established platform and client base. The decoupling of revenue from headcount across the industry also validates the Companys long-standing positioning as a platforms business rather than a services- led one.

2. Industry Structure and Developments

2.1 The Shift Towards Al-led, Governed Customer Communications

Enterprises globally are consolidating what were once fragmented communication functions — covering marketing, transactional messaging, regulatory notices, and customer service — onto a unified and governed platform. This shift is driven by three simultaneous requirements: the ability to personalise communications at scale using Al, the ability to control communication cost and consistency across channels, and the ability to demonstrate regulatory compliance in every customer interaction.

Historically, large enterprises addressed each of these needs with separate point solutions — a statement composition engine, a campaign management tool, a CPaaS gateway, a consent repository — procured at different times by different functions. The resulting fragmentation creates duplicated spend, inconsistent customer experience and, most significantly under the new privacy regime, an inability to evidence at an audit level which communication was sent to which customer under which consent. The convergence of customer communications management, digital engagement, marketing automation, and communications governance into a single connected ecosystem is, in managements view, the defining structural change in this market.

Intense Technologies UniServe™ NXT platform, its Centralised Communications Governance Hub, together with its 360 Template Designer and its UniServe™ Reach Marketing Automation and Digital Customer Engagement Platform, are positioned directly against this shift. The Companys recognition through FY26 across four separate Omdia Universe reports (covering Customer Communications Management, Digital Experience Management (DXM), CPaaS Providers, and No/Low-Code Application Development Platforms), the QKS Group SPARK Matrix for Customer Communication Management, and its recognition by Fortune Business Insights and SkyQuest, reflects independent analyst validation of this positioning across each of the converging categories rather than in a single niche.

2.2 Indias Digital Personal Data Protection (DPDP) Act: A Regulatory Catalyst

A significant future opportunity for Intense Technologies addressable market is the phased implementation of Indias Digital Personal Data Protection Act, 2023 (DPDP Act), with the key compliance milestone extending to May 2027. This creates a growing opportunity for organisations across industries to strengthen data discovery, consent management, governance and compliance capabilities.

The financial consequence of non-compliance is material: the Act provides for penalties of up to Rs.250 crore per instance for failure to implement reasonable security safeguards, with penalties assessed per violation. For enterprises in highly regulated industries— this timeline converts data governance from a discretionary initiative into a mandatory, time-bound, and board-supervised compliance programme with a quantified downside.

The Companys DPDP Governance Platform, integrating consent management, data discovery and classification, and campaign orchestration, is designed to help enterprises prepare for and meet evolving data protection obligations. Management believes the phased implementation of the DPDP framework, with the key compliance milestone extending to May 2027, presents a significant and sustained opportunity for the Companys governance-led Platform. As organisations move closer to compliance requirements, enterprise investments in data governance, consent management, and privacy controls are expected to accelerate, creating opportunities for broader adoption and increased customer spend.

2.3 Scale of Communication Activity in BFSI and Telecom

Intense Technologies two principal verticals, BFSI and telecom, both continued to scale through FY26, sustaining the underlying volume of regulated, high-frequency customer communication that the Companys platforms are built to manage.

Reserve Bank of India payment systems data shows that digital payment transaction volumes across India grew more than 33-fold over the decade to 2025, with the Unified Payments Interface (UPI) alone accounting for 85.5% of total digital payment transaction volume in the second half of calendar 2025. Transaction activity at this scale requires banks and payment providers to generate very large volumes of transactional statements, alerts and regulatory notices — the core use case addressed by Intense Technologies UniServe™ platforms.

2.4 Competitive Landscape

The markets in which the Company operates are contested by two distinct groups of participants: global customer communications management vendors with long-established installed bases in banking and insurance and a newer cohort of privacy and consent management specialists that has emerged in response to global data privacy regulation. Increasingly, each group is extending into the others territory, which both intensifies competition and validates the convergence thesis on which the Companys platform strategy rests.

Management believes the Companys differentiation rests on three factors: an integrated platform that spans composition, orchestration, delivery, engagement, and consent within a single governed environment rather than through acquired and loosely stitched components; proven performance at scale in highly regulated Indian and international environments; and a registered intellectual property portfolio built over more than two decades.

3. Our Business

Intense Technologies Limited is an Al-first, platform-driven services company focused on customer communications, data management, and process automation. Headquartered in Hyderabad, the Company serves enterprises across BFSI, telecom, and government, and more sectors with its solutions addressing high- volume and highly regulated business environments. Its core platform, UniServe™ NXT, acts as a Centralised Communications Governance Hub, supported by capabilities for document and template design, digital customer engagement, marketing automation, consent management, and communications governance. The Company also provides Al-enabled data management and no-code application development capabilities, along with data and managed services.

Intense Technologies helps enterprises manage the complete customer communication lifecycle, from data and content creation to orchestration, delivery, consented communications, and governance. Its platforms are designed to help organisations deliver relevant communications through the appropriate channel while improving control, operational efficiency, and compliance. This is particularly relevant in sectors such as BFSI and telecom, where enterprises handle large volumes of customer and regulatory communications. The Companys platforms currently support the generation of more than 100 million regulatory statements generated every month, demonstrating the scale of the environments in which its solutions operate.

As data privacy and regulatory requirements become increasingly important, Intense Technologies is also extending its capabilities into Digital Personal Data Protection (DPDP). Its DPDP Governance Platform brings together consent management, data discovery and classification, and campaign orchestration, enabling enterprises to incorporate privacy and compliance controls directly into customer communication processes. This strengthens the Companys proposition across existing markets while creating opportunities to address broader enterprise data governance requirements.

The Company is further embedding LLMs and other emerging technologies across its platforms to make enterprise communications and workflows more intelligent, contextual, and efficient. Through its combination of proprietary platforms, domain expertise, and technology capabilities, Intense Technologies seeks to help enterprises simplify complex processes, strengthen governance, and improve the way they manage customer interactions at scale. The equity shares of Intense Technologies Limited are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited.

3.1 Platforms and Services

The Companys core platform, UniServe™ NXT, functions as a Centralised Communications Governance Hub, integrating the 360 Template Designer for multi-format document design, UniServe™ Reach for marketing automation and digital customer engagement, and an extended DPDP Governance Platform for consent management and regulatory compliance. These are supplemented by an Al-Enabled Data Management Platform, designed to understand, score, enrich and remediate enterprise data, and a No-code Application Development Platform intended to help clients build and deploy workflows with minimal manual coding.

Alongside its platforms, the Company offers Data Services (covering data management, data quality, golden record creation and de-duplication), Talent-as-a-Service (workforce optimisation and build-operate-transfer engagements), and Managed Services spanning solution engineering, testing services under its Testbook.ai brand, product engineering, infrastructure services and government-focused managed services.

3.2 Business Model and Revenue Streams

For its core platforms, the Companys revenue is derived from a combination of platform licence fees, annual maintenance, implementation, and operational support, while the DPDP opportunity is evolving towards a more transaction-based engagement model. This mix, including term-based licences for the Companys core platforms, has two consequences that are relevant to interpreting the Companys reported results in any single year.

3.3 Global Structure and Subsidiaries

The Company conducts its overseas and specialised operations through four wholly owned subsidiaries: Intense Technologies FZE in the Hamriyah Free Zone, United Arab Emirates; Intense Technologies INC in the United States; Intense Technologies UK Limited in the United Kingdom; and Intense Al Solution Systems Private Limited in Hyderabad, India. The three overseas subsidiaries collectively serve the Companys international client base across the Middle East, North America, the United Kingdom, and the EMEA region.

The consolidated financial statements incorporate the results of the Company and its subsidiaries. As set out in Section 6.3, the overseas subsidiaries contributed an increasing share of consolidated revenue during FY26.

3.4 Segment Reporting

The Companys operations relate predominantly to the development, licensing, and implementation of software products, and the provision of associated services. In the opinion of management, and consistent with the requirements of Ind AS 108 - Operating Segments, these activities constitute a single reportable operating segment, and the Company accordingly does not report its results by business segment. Information relating to revenue by geography is set out in the notes to the financial statements and, in summary form, in Section 6.3 of this Management Discussion and Analysis.

4. Opportunities and Threats

4.1 Opportunities

• Regulation-driven demand for data privacy. The phased implementation of the DPDP framework, with key compliance requirements extending through May 2027, alongside the RBIs Responsible Business Conduct (RBC) Directions and evolving regulatory requirements from the Insurance Regulatory and Development Authority of India (IRDAI), is driving greater focus on data governance, consent management, auditability, and compliant customer communications. With penalties under the DPDP framework reaching up to Rs.250 crore for certain contraventions, data privacy is increasingly becoming a board-level priority, and a compliance-driven technology spend across the Companys BFSI, telecom, government, and other enterprise customer base. This creates a sustained opportunity for the Companys DPDP Governance Platform and broader governance-led solutions.

• Cost optimisation demand. Continued pressure on enterprises to improve operating efficiency, rationalise technology spend, and optimise high-volume customer communication costs is driving demand for intelligent automation, centralised communication management, and cost-effective communications.

• Need for hyper-personalised customer engagement. Rising customer expectations for timely, relevant, and contextual interactions are accelerating demand for hyper-personalised communications across channels and customer journeys. Enterprises are increasingly seeking to combine customer data, Al, and real-time decisioning to customise messaging, offers, and interactions at scale, creating opportunities for the Companys Al-enabled communications and digital customer engagement platforms.

• Geographic expansion. The Companys stated strategy of strengthening its presence across India, the UK and the broader EMEA region is already reflected in a 66.2%increase in overseas subsidiary revenue during FY26, and extends the addressable market beyond the domestic base.

• Government and public sector digitisation. According to the Union Budget 2026-27, the Digital India Programme has been allocated Rs.4,741.5 crore for FY2026-27, including Rs.628.2 crore for Electronic Governance, while the National Informatics Centre has been allocated Rs.1,595 crore to support e-Governance ICT infrastructure, applications, and citizen-centric services. Rising government spending on digital transformation, citizen services, and digital public infrastructure is opening a significant adjacent market forthe Company, driving demand for secure, scalable, and multilingual platforms that enable more efficient service delivery and improve the citizen experience.

• Cross-sell into the installed base. The Companys existing UniServe™ NXT installed base provides a route to market for the DPDP Governance Platform and UniServe™ Reach with materially lower customer acquisition cost than new-logo acquisition, and with the integration advantage of a common platform.

• Shift from headcount-led to platform-led delivery. The industry-wide decoupling of revenue from headcount, evidenced by NASSCOMs FY26 data, favours vendors with proprietary platforms and registered intellectual property over labour-arbitrage models.

4.2 Threats and Challenges

• Restoring revenue growth. Revenue from operations declined during FY26 on both a standalone and consolidated basis, primarily reflecting the conclusion and handover of managed services engagement. The Company remains focused on restoring profitability through order intake, client engagement, and effective utilisation of its platform and service capabilities.

• Competitive intensity and pricing pressure. The enterprise technology and communications landscape includes well-capitalised global and regional competitors investing heavily in Al-led capabilities, requiring continued investment in innovation and product development to maintain differentiation and defend pricing.

• Extended enterprise decision cycles. Enterprises are prioritising tactical Al initiatives with demonstrable returns over larger transformation programmes, which can extend evaluation and procurement cycles for platform commitments and make the timing of revenue recognition less predictable.

• Client and sector concentration. A significant share of revenue is derived from clients in the BFSI and telecom sectors, and from a limited number of large accounts within them, exposing the Company to the budget cycles and procurement decisions of a concentrated client base. These sectors are also among the larger spenders on technology, providing a substantial and growing addressable market for the Companys solutions. Additionally, given that the DPDP Platform is relevant to organisations storing and handling large volumes of customer data, it presents opportunities to expand platform adoption across a broader set of industry players.

• Receivables and working capital. The provisioning recognised against aged receivables during the year demonstrates that extended collection cycles in large enterprise and public sector engagements can translate into a direct charge to the statement of profit and loss. Given the Companys efforts in government business, where receivables cycles can differ from private-sector engagements, management is strengthening collection cadence, closely monitoring outstanding receivables, and taking proactive measures to improve working capital discipline.

• Pace of technology change. The rapid evolution of Generative and Agentic Al shortens product lifecycles and can compress the period over which platform development investment is recovered, as reflected in the impairment recognised during the year.

• Talent competition. Competition for sales, engineering, data science, and Al talent remains intense across the Indian technology sector, with implications for both cost and delivery capacity.

• Regulatory and macroeconomic conditions. Changes in customer demand, industry dynamics, currency movements, and macroeconomic or geopolitical conditions may influence business performance across the markets in which the Company operates.

5. Business and Operational Review, FY26

5.1 Analyst and Industry Recognition

During the year, the Company was featured in the Omdia Universe report on Customer Communications Management (2026), the Omdia Universe report on Digital Experience Management (2025-26), and was named in the Omdia Universe report on CPaaS Providers (2025) for its UniServe™ Reach and Connect platforms, as well as in the Omdia Universe report on No/Low-Code Application Development Platforms (2025). Recognition across four distinct Omdia categories in a single year is notable in that it spans each of the segments now converging into a single enterprise communications ecosystem, supporting the Companys positioning as an integrated platform rather than a single-category vendor.

The Company was also recognised in the QKS Group SPARK Matrix for Customer Communication Management (2025) by Fortune Business Insights for its Customer Communication Management offering for the second consecutive year, and as a Top Player by SkyQuest in its Customer Communication Management Market Global Forecast 2025-2032. The Company reports being ranked first in Gartner Peer Insights and having received more than 27 awards and recognitions from industry bodies, government, media and analyst firms over its operating history.

5.2 Certifications and Intellectual Property

The Company strengthened its compliance and security credentials during the year, receiving the SOC 2 Type 2 report and securing CERT-ln certification for its flagship UniServe™ NXT platform from Indias Computer Emergency Response Team. UniServe™ NXT is also appraised at Level 3 of the CMMI Capability Maturity Model Integration. These credentials are increasingly a prerequisite in enterprise and public sector procurement, particularly in BFSI and government, and their absence can preclude participation in tenders irrespective of functional fit.

On intellectual property, the Company secured a copyright for UniServe™ Reach, its marketing automation and digital customer engagement platform, and a copyright for its Al-based Digital Communication Flub, taking its registered intellectual property portfolio to 26 Registered Copyrights, 22 Trademarks, One Patent Granted, and One Published Patent Application.

5.3 Platform and Product Development

• Delivering Al-powered and centralised communications: Strengthening our platform capabilities to bring end-to-end customer communications into a unified, Al-powered ecosystem across regulatory, transactional, service, and promotional interactions, enabling enterprises to reach the right customer, at the right time, through the right channel, in the preferred language, with the right context and relevance, while standardising workflows, strengthening governance, reducing operational costs, improving customer experience, and optimising communication spend.

• Advancing consent-driven, context-aware engagement: Integrating consent into the customer communication lifecycle to operationalise DPDP requirements and ensure communications are governed by consent by design, while enabling enterprises to orchestrate timely, personalised, and meaningful engagement based on customer behaviour, preferences, lifecycle stage, and intent.

5.4 Strategic Focus Areas

The Companys strategic priorities are centred on strengthening its capabilities in Al-powered customer engagement, communication governance, consent-driven communications, and regulatory technology, while expanding its presence across key markets.

Innovation priorities

On the innovation front, the Company is focused on delivering unified enterprise communications that bring regulatory, transactional, service, and promotional interactions together through a connected platform. Its communication governance capabilities are designed to help enterprises standardise communication workflows, improve customer experience, optimise communication spend, and strengthen governance. The Company is also advancing consent-driven and context-aware engagement with its DPDP Governance Platform, enabling enterprises to deliver more relevant and personalised communications while embedding consent and compliance across the customer communication lifecycle.

Business priorities

On the business front, the Company is focused on expanding across India, the UK, and the EMEA region, while pursuing opportunities arising from the evolving DPDP framework. This includes strengthening its DPDP Governance capabilities by integrating consent-led communications into customer engagement and communication workflows, addressing growing demand for privacy and governance solutions across industries, and expanding opportunities across new customer and industry segments. The Company is also increasing its focus on the government sector, aligned with the growing adoption of digital platforms and services in public administration and citizen services; in parallel, the Company is continuing to put efforts into its Talent-as-a- Service (TaaS) offering, while making inroads into international markets.

6. Financial Performance and Analysis

6.1 Basis of Preparation

The standalone and consolidated financial statements of the Company for the year ended March 31, 2026 have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. There has been no change in the accounting treatment adopted by the Company during the year that would require separate disclosure under Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All figures in this section are in Rs. lakh unless otherwise stated; figures in brackets denote negative amounts.

6.2 Results at a Glance

Particulars (Rs. in Lakhs)	Consolidated	Consolidated	Standalone	Standalone
	FY26	FY25	FY26	FY25
Revenue from Operations	12,543.41	14,979.64	9,058.83	12,740.36
Other Income	447.52	390.67	364.78	389.82
Total Income	12,990.93	15,370.31	9,423.61	13,130.18
Total Expenses	12,008.88	13,332.44	9,489.47	11,718.72
Profit before Exceptional Items & Tax	982.05	2,037.87	(65.86)	1,411.46
Exceptional Items (net charge)	3,164.63	Nil	2,686.28	Nil
Profit/(Loss) before Tax	(2,182.58)	2,037.87	(2,752.14)	1,411.46
Tax Expense/(Credit)	(617.12)	405.55	(683.75)	340.54
Profit/(Loss) for the Year	(1,565.46)	1,632.32	(2,068.39)	1,070.92
Basic EPS (Rs., Face Value Rs.2 each)	(6.70)	7.00	(8.86)	4.59
Diluted EPS (Rs., Face Value Rs.2 each)	(6.45)	6.90	(8.52)	4.53

Overview of the year

FY26 was a year of two distinct aspects in the Companys reported results. At the operating level, the business remained profitable on a consolidated basis, delivering profit before exceptional items and tax of Rs.982.05 lakh. That result was, however, substantially overtaken by an exceptional net charge of Rs.3,164.63 lakh on a consolidated basis (Rs.2,686.28 lakh standalone), which converted an operating profit into a loss before tax of Rs.2,182.58 lakh and a loss for the year of Rs.1,565.46 lakh, against a profit of Rs.1,632.32 lakh in FY25.

The key movements for the year were as follows:

• Revenue from operations declined 16.3% on a consolidated basis to Rs.12,543.41 lakh and 28.9% on a standalone basis to Rs.9,058.83 lakh.

• Total expenses reduced 9.9% on a consolidated basis to Rs.12,008.88 lakh and 19.0% on a standalone basis to Rs.9,489.47 lakh, reflecting cost discipline through the year, although the reduction did not fully offset the decline in revenue.

• Profit before exceptional items and tax fell 51.8% to Rs.982.05 lakh on a consolidated basis; on a standalone basis, the Company recorded a small loss of Rs.65.86 lakh at this level against a profit of Rs.1,411.46 lakh in the prior year.

• Exceptional items of Rs.3,164.63 lakh (consolidated) were the single largest determinant of the reported result. Of this, Rs.2,686.28 lakh arose at the standalone level and the balance of Rs.478.35 lakh at subsidiary and consolidation level.

• Operating cash flow improved sharply to Rs.2,353.22 lakh on a consolidated basis from Rs.322.57 lakh, and to an inflow of Rs.1,620.37 lakh on a standalone basis from an outflow of Rs.314.71 lakh, reflecting the reduction in trade receivables.

• The balance sheet has negligible debt, with cash and cash equivalents rising to Rs.5,409.73 lakh on a consolidated basis.

6.3 Revenue Analysis

Revenue from operations declined during FY26 on both a standalone and a consolidated basis. Against this, the Companys three overseas wholly-owned subsidiaries — Intense Technologies FZE in the UAE, Intense Technologies INC in the United States, and Intense Technologies UK Limited in the United Kingdom — grew their combined revenue contribution to approximately Rs.4,055.81 lakh in FY26 from approximately Rs.2,440.71 lakh in FY25, an increase of around 66%, partly cushioning the standalone revenue trend at the consolidated level.

Revenue from Operations (Rs. in Lakhs)	FY26	FY25	Change
India operations (standalone excluding Intercompany transactions)	8,487.61	12,538.93	(32.3)%
Overseas subsidiaries (UAE, USA, UK)	4,055.81	2,440.71	+66.2%
Consolidated revenue from operations	12,543.41	14,979.64	(16.3)%
Overseas share of consolidated revenue	32.3%	16.3%	+16.0 pp

"pp" denotes percentage points.

The shift in revenue mix is material to how the year should be read. International operations moved from approximately one-seventh to more than one-quarter of consolidated revenue in a single year and were the only part of the business to grow. This is consistent with the Boards stated strategy of strengthening the Companys presence across India, the UK and the broader EMEA region as priority growth markets, and it reduces, at the margin, the Companys dependence on the domestic market. The year-on-year change was largely due to the successful completion and transition of certain managed services engagements, reflecting the natural conclusion of these large projects.

6.4 Exceptional Items

The Company recognised an exceptional net charge of Rs.3,164.63 lakh on a consolidated basis and Rs.2,686.28 lakh on a standalone basis during FY26. No exceptional items were recognised in FY25. The charge comprised provisioning recognised against aged trade receivables where recovery was assessed as doubtful, and an impairment provision recognised against certain product platforms in light of the pace of change in Al technologies.

Nature of charge (Rs. in Lakhs)	Consolidated FY26	Standalone FY26
Provision for doubtful trade receivables	1,840.07	1,361.72
Impairment of product platforms/intangible assets	1,324.56	1,324.56
Other exceptional items, if any	-	-
Total exceptional items (net charge)	3,164.63	2,686.28

Management wishes to draw shareholders attention to three points in respect of these charges. First, both charges are non-cash in the year in which they arise, and the improvement in operating cash flow described in Section 6.8 was achieved notwithstanding them. Second, the receivables provisioning reflects a prudent decision to take a conservative view of aged balances rather than to carry them forward, and is accompanied by tightened credit assessment and collection processes. Third, the impairment reflects a reassessment of the recoverable value of certain platform development investment in light of the speed at which Generative and Agentic Al have reset enterprise expectations of communication technology; it does not affect the Companys core UniServe™ NXT, UniServe™ Reach or DPDP Governance platforms, in which investment continues.

6.5 Expenditure Analysis

Total expenses reduced to Rs.12,008.88 lakh on a consolidated basis from Rs.13,332.44 lakh, a decline of 9.9%, and to Rs.9,489.47 lakh on a standalone basis from Rs.11,718.72 lakh, a decline of 19.0%. Because revenue declined faster than costs on both bases, operating leverage worked against the Company during the year, compressing the margin before exceptional items.

Consolidated expenditure (Rs. in Lakhs)	FY26	FY25	Change
Operating expense	272.19	279.68	(2.7)%
IT Infrastructure Cost	1,714.52	2820.37	(39.2)%
Employee benefits expense	6,525.90	6,268.11	4.1%
Depreciation and amortisation expense	659.18	489.36	34.7%
Finance costs	24.88	15.97	55.8%
Professional, Consultants & Related Expenses	1,738.75	1,934.22	(10.1)%
Other expenses	1,073.46	1,524.73	(29.6)%
Total expenses	12,008.88	13,332.44	(9.9)%

Line-item wise comparison on yearly basis, IT infrastructure cost has significantly decreased from the previous year. This decrease is attributed to lower revenue derived from managed services contract wherein portion of IT Infrastructure hardware and assets delivered constitute a significant part of such managed services contract. The decrease in Professional, Consultants & Related Expenses and Other expenses is in commensurate with drop in revenue.

6.6 Profitability

Before exceptional items, the consolidated business remained profitable, recording profit before exceptional items and tax of Rs.982.05 lakh, representing a margin of 7.8% of revenue from operations against 13.6% in FY25. On a standalone basis, the sharper revenue decline of 28.9% carried the Company to a small pre-exceptional loss of Rs.65.86 lakh against a profit of Rs.1,411.46 lakh in the prior year, illustrating the extent to which fixed platform and personnel costs are carried in the standalone entity while a growing share of revenue is now earned through the overseas subsidiaries.

After the exceptional charge, the consolidated loss before tax was Rs.2,182.58 lakh. A net tax credit of Rs.617.12 lakh (standalone: Rs.683.75 lakh) was recognised, principally reflecting deferred tax on the timing differences arising from the provisioning and impairment recognised during the year, resulting in a loss for the year of Rs.1,565.46 lakh on a consolidated basis and Rs.2,068.39 lakh on a standalone basis. Consolidated basic earnings per share was accordingly negative at Rs.(6.70) against Rs.7.00 in FY25.

6.7 Balance Sheet, Net Worth and Liquidity

The balance sheet strengthened in liquidity terms during the year even as net worth reduced by the loss recognised. Trade receivables reduced sharply on both bases, aided by the years doubtful debt provisioning and by improved collections, and the released working capital was reflected in higher cash balances. The Company continues to operate on a substantially debt-free basis, with a debt-equity ratio of negligible in both years.

Particulars (Rs. in Lakhs)	Consolidated FY26	Consolidated FY25	Standalone FY26 E	Standalone FY25
Trade receivables	4,084.48	6,736.01	3,127.49	5,457.79
Cash and cash equivalents	5,409.73	2,543.42	3,327.80	1,325.13
Net worth/Total equity	12,524.29	14,121.98	10,335.46	12,973.60
Total borrowings	15.65	23.56	15.65	23.56

Consolidated trade receivables reduced 39.4% to Rs.4,084.48 lakh from Rs.6,736.01 lakh, and standalone receivables reduced 42.7% to Rs.3,127.49 lakh from Rs.5,457.79 lakh. Cash and cash equivalents rose correspondingly to Rs.5,409.73 lakh on a consolidated basis and Rs.3,327.80 lakh on a standalone basis as at March 31, 2026. With negligible borrowings on either basis, the Company enters FY27 with the balance sheet capacity to fund its platform investment programme and its geographic expansion from internal resources.

6.8 Cash Flow

Net cash from operating activities improved markedly to Rs.2,353.22 lakh on a consolidated basis and Rs.1,620.37 lakh on a standalone basis, from Rs.322.57 lakh and an outflow of Rs.314.71 lakh respectively in FY25. The improvement was driven by the substantial reduction in trade receivables and, on a standalone basis, by a tax refund received during the year. Management regards the conversion of the operating result into cash as one of the more encouraging features of FY26, particularly in a year in which the reported result was a loss.

Net cash from investing activities reflected net maturities of fixed deposits and mutual fund investments alongside continued investment in property, plant and equipment and in intangible assets. Net cash used in financing activities narrowed from the prior year. Cash and cash equivalents accordingly rose to Rs.5,409.73 lakh on a consolidated basis and Rs.3,327.80 lakh on a standalone basis at the year-end.

6.9 Capital Structure and Shareholder Returns

The Companys equity shares have a face value of Rs.2 each. The difference between basic and diluted earnings per share in both years indicates outstanding potential dilutive equity instruments, being options granted under the Companys employee stock option arrangements.

7. Key Financial Ratios

Disclosure of significant changes, being changes of 25% or more, in key financial ratios, together with detailed explanations, is made below in accordance with Schedule V (Part C)(2)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

7.1 Consolidated

Ratio	FY26	FY25	Change	Reason for variance (where the change is 25% or more)
Profit Before Tax Margin (%)	(17.40)	13.60	NM	The Company recorded a net loss in FY26 against a net profit in FY25. The movement is attributable principally to the exceptional net charge of Rs.3,164.63 lakh recognised towards provisioning against aged trade receivables and impairment of certain product platforms, together with a 16.3% decline in revenue from operations. Before exceptional items, the Company recorded a profit before tax of Rs.982.05 lakh.
Return on Equity (%)	(11.29)	12.51	NM	Reflects the net loss for the year arising from the exceptional charge described above, applied to the average shareholders equity for the year. The ratio is not meaningful for comparison given the change in sign.
Return on Capital Employed (%)	(17.40)	14.43	NM	Reflects the operating loss position after the exceptional charge described above. The ratio is not meaningful for comparison given the change in sign.
Current Ratio (times)	4.37	4.42	(1.04)%	Variance is below the 25% threshold; no explanation is required. Liquidity remained comfortable, supported by higher cash balances.
Debt-Equity Ratio (times)	0.00	0.00	NM	The Company had negligible borrowings in either year and continues to operate with negligible debt basis.
Debt Service Coverage Ratio (times)	(91.06)	186.02	NM	The Company has negligible borrowings. The negative figure arises from the loss recorded after the exceptional charge, and the ratio is not meaningful for comparison.
Trade Receivables Turnover Ratio (days)	157	137	+14.6%	Increased by 14.6% due to lower revenue in current year with stagnant debtors level driven by a 39.4% reduction in trade receivables, from Rs.6,736.01 lakh to Rs.4,084.48 lakh, reflecting focused collection efforts and provisioning against aged balances, partly offset by lower revenue for the year.
Trade Payables Turnover Ratio (days)	29	11	+ 164%	Improvement in trade payables is due to back to back payment arrangements for partners and vendors.

NM: Not Meaningful. Where a ratio moves from a positive to a negative figure, a percentage change is not meaningful and the reason for the movement is explained instead.

7.2 Standalone

Ratio	FY26	FY25	Change	Reason for variance (where the change is 25% or more)
Profit Before Tax Margin (%)	(30.38)	11.08	NM	The Company recorded a net loss in FY26 against a net profit in FY25, driven principally by the exceptional net charge of Rs.2,686.28 lakh towards receivables provisioning and platform impairment, together with a 28.9% decline in standalone revenue from operations.
Return on Equity (%)	(18.42)	8.85	NM	Reflects the standalone net loss for the year arising from the exceptional charge described above. The ratio is not meaningful for comparison given the change in sign.
Return on Capital Employed (%)	(26.59)	10.88	NM	Reflects the operating loss position after the exceptional charge described above. The ratio is not meaningful for comparison given the change in sign.
Current Ratio (times)	1.86	2.24	(16.9) %	Variance is below the 25% threshold; no explanation is required.
Debt-Equity Ratio (times)	0.00	0.00	NM	The Company had negligible borrowings in either year and continues to operate with negligible debt.
Debt Service Coverage Ratio (times)	(143.43)	136.80	NM	The Company has negligible borrowings. The negative figure arises from the loss recorded after the exceptional charge, and the ratio is not meaningful for comparison.
Trade Receivables Turnover Ratio (days)	173	129	+34.1%	Increased by 34.1% due to lower revenue in current year with stagnant debtors level driven by a 42.7% reduction in standalone trade receivables, from Rs.5,457.79 lakh to Rs.3,127.49 lakh, reflecting focused collection efforts and provisioning against aged balances, partly offset by lower revenue.
Trade Payables Turnover Ratio (days)	121	65	86.2%	Improvement in trade payables is due to back to back payment arrangements for partners and vendors.

NM: Not Meaningful. Reasons for variance have been drafted by reference to the reported financial statements and should be reviewed and confirmed by management before finalisation.

7.3 Return on Net Worth

Details of the change in Return on Net Worth as compared with the immediately preceding financial year are disclosed below in accordance with Schedule V (Part C)(2)(j) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Return on Net Worth	FY26	FY25	Change
Consolidated (%)	(11.29)	12.51	(23.80) pp
Standalone (%)	(18.42)	8.85	(27.27) pp

"pp" denotes percentage points. Return on Net Worth is computed as Total Comprehensive Income as a percentage of shareholders funds, consistent with the Return on Equity presented above.

Explanation: The reduction in Return on Net Worth on both a consolidated and a standalone basis is attributable to the loss recorded for FY26, which in turn arose principally from the exceptional net charge of Rs.3,164.63 lakh on a consolidated basis and Rs.2,686.28 lakh on a standalone basis, recognised towards provisioning against aged trade receivables and impairment of certain product platforms, together with the decline in revenue from operations described in Section 6.3. Before exceptional items, the Company recorded a consolidated profit before tax of Rs.982.05 lakh. There was no change in the Companys capital structure during the year that materially affected this ratio.

8. Outlook

In the past year, the Company added 11 new clients across BFSI and Government services, spanning its core offerings as well as Talent-as-a-Service. This reflects strong market acceptance of its platforms. Looking ahead, management is focused on building on the platform investments made during FY26 by deepening the Companys presence across India, the UK, and the broader EMEA region. A parallel priority is to scale the Companys DPDP Governance Platform as the DPDP Rules progress through their phased compliance timeline, with key requirements extending to May 2027. This extension is aimed at connecting consent management directly with customer engagement and communication processes, so that enterprises can embed privacy and compliance controls at the point communications are initiated rather than as a retrospective activity, and at carrying these data privacy capabilities into industries beyond the Companys traditional BFSI and telecom base.

The government sector, supported by rising public investment in digitisation and citizen services, is expected to be an increasing area of focus alongside the Companys established position in BFSI and telecom. More broadly, management sees the enterprise communications landscape converging, with customer communications management, digital engagement, marketing automation and communications governance increasingly coming together into a single connected ecosystem — a shift the Companys platform strategy is designed to address.

Managements near-term priorities for FY27 are, in order:

• Restoring revenue growth. Rebuilding order intake in the domestic business, where the decline was concentrated, while sustaining the momentum evident in the overseas subsidiaries.

• Converting the DPDP opportunity. Positioning the DPDP Governance Platform ahead of the November 2026 and May 2027 statutory milestones, including within the existing UniServe™ installed base.

• Restoring profitability. Translating the platform and governance investments of the past year into operating profit, with continued discipline on the cost base.

• Maintaining balance sheet quality. Sustaining the disciplined approach to receivables and cost management that supported the marked improvement in operating cash flow during FY26, and preserving the Companys debt-free position.

Management is conscious that FY26 was a year in which reported results fell short of expectations, and regards the restoration of revenue growth and profitability as the central measure against which FY27 should be judged.

9. Risks, Concerns and Mitigation

The Company operates a risk management framework under which principal risks are identified, assessed and monitored, with oversight by the Board and its Committees. The principal risks to which the Company is presently exposed, and the measures adopted to mitigate them, are set out below.

Risk	Description and potential impact	Mitigation
Revenue growth and demand risk	Revenue from operations declined in FY26 on both bases. Continued weakness in order intake, or extended enterprise decision cycles as clients favour tactical Al initiatives over larger platform commitments, would delay a return to growth and profitability.	The Company is strengthening its focus on order intake and pipeline conversion while broadening its growth avenues. Key initiatives include expanding into the government sector and international markets, scaling the DPDP Governance Platform and Talent-as-a-Service (TaaS) offering, and deepening cross-sell and up-sell opportunities across the existing customer base.
Client and sector concentration risk	A significant share of revenue is derived from clients in the BFSI and telecom sectors, and from a limited number of large accounts within them. Loss of, or reduced spending by, a major client could have a disproportionate effect on results.	Diversification into the government sector and into new geographies including the UK and the broader EMEA region; deliberate broadening of the client base through the governance-led product suite into industries beyond BFSI and telecom.
Credit and receivables risk	The provisioning recognised against aged receivables during FY26 demonstrates that extended collection cycles in large enterprise and public sector engagements can translate directly into a charge to the statement of profit and loss.	Regular monitoring of receivable ageing with escalation protocols; disciplined credit assessment at the contracting stage; provisioning action where recovery is assessed as doubtful; milestone-linked billing where commercially achievable.
Technology and platform obsolescence risk	The impairment recognised during FY26 reflects the pace of change in enterprise communication and Al technologies, which shortens product lifecycles and can compress the period over which platform development investment is recovered.	Continued investment in the core UniServe™ and DPDP Governance platforms; leveraging Al capabilities to accelerate product development, enhance platform functionality and improve development efficiency; aligning the product roadmap with emerging client requirements and analyst-tracked category evolution; and conducting periodic reviews of the carrying value of capitalised development.
Competitive and pricing risk	The enterprise communications, CPaaS and consent management markets include well- capitalised global and regional competitors investing heavily in Al-led capabilities, creating pressure on both differentiation and pricing, particularly at renewal.	Differentiation through an integrated platform spanning composition, orchestration, delivery, engagement and consent; a registered IP portfolio of 26 Registered Copyrights, 22 Trademarks, One Patent Granted, and One Published Patent Application; sustained analyst recognition.
Cybersecurity and data protection risk	The Companys platforms process large volumes of sensitive client and subscriber data, supporting the generation of more than 100 million regulatory statements generated every month. A security incident could result in regulatory penalties, client attrition, and reputational damage.	SOC 2 Type 2 attestation and CERT-ln certification for UniServe™ NXT; CMMI Level 3 appraisal; access controls, monitoring and periodic security testing; incident response procedures aligned to the 72-hour breach reporting requirement under the DPDP Rules.
Regulatory and compliance risk	As a provider of platforms that process personal data, the Company is itself subject to the DPDP Act and to sector-specific and international data protection regimes including the GDPR in its European markets. Non-compliance carries penalties of up to Rs.250 crore per instance under the DPDP framework.	Certifications as above; alignment of internal processes to the phased DPDP compliance timeline; legal and compliance review of contractual data processing obligations; the Companys own compliance programme doubles as a reference implementation for clients.
Foreign currency risk	Approximately 32.3% of consolidated revenue in FY26 was earned through overseas subsidiaries transacting in currencies including the US dollar, pound sterling and UAE dirham. Adverse movements in exchange rates could affect reported consolidated revenue and margins.	Natural hedging through the currency composition of overseas costs; monitoring of net foreign currency exposure; the Companys low reliance on foreign currency borrowings limits balance sheet exposure.
Talent attraction and retention risk	Competition for engineering, data science and Al talent remains intense across the Indian technology sector. Loss of key technical or delivery personnel could affect the product roadmap and client delivery commitments.	An average employee tenure of seven years and a substantial cohort of long-serving employees; structured induction and management development programmes; objective KRA-based appraisals; flexible and remote-enabled hiring to widen the talent pool.
Execution and delivery risk	Enterprise platform implementations are complex, long-running and mission- critical. Delay or under-performance in a significant implementation could affect revenue recognition, client relationships and reputation.	CMMI Level 3 appraised delivery processes; programme governance and milestone review; long-standing delivery teams with deep domain experience in regulated environments.
Intellectual property risk	The Companys competitive position rests substantially on proprietary platforms and registered IP. Infringement of the Companys IP, or claims that its platforms infringe third- party rights, could result in litigation costs and loss of differentiation.	Active registration and maintenance of the IP portfolio; contractual protections in client and partner agreements; review of third-party and open-source components incorporated into the platforms.
Third- party and infrastructure dependency risk	The Companys platforms depend in part on third-party cloud infrastructure, communication channel providers and software components. Disruption at a key provider could affect service availability to clients. AWS is a cloud infrastructure dependency, and any material disruption could affect service availability to clients.	Provider diversification where practicable; contractual service levels; business continuity and disaster recovery planning; monitoring of the resilience of critical dependencies. The Company also continuously evaluates infrastructure capabilities to minimise the impact of any disruption.

10. Human Resources and Industrial Relations

The Companys workforce of over 370 employees across its global offices remains central to its ability to deliver Ailed platforms to enterprise clients. An average employee tenure of seven years, together with over 46 employees who have spent more than ten years at the Company and over 20 senior professionals bringing more than two decades of experience, reflects a stable and experienced organisation. In an industry in which the link between headcount and revenue is weakening, the depth of domain knowledge held within this long-serving cohort is a material competitive asset. The Company continues to foster a strong culture of belonging and a connected InlOs family across its workforce.

The Company is also systematically adopting Al across internal functions to improve productivity, automate repetitive activities, and drive greater operating efficiency, to improve scalability and profitability. The Company continues to invest in its people through training and digital upskilling platforms, enabling employees to build capabilities in Al and emerging technologies. Performance-linked incentives, including variable compensation and employee stock option programmes (ESOP), are used to align employee contributions with business performance and long-term value creation.

11. Internal Control Systems and Their Adequacy

The Company maintains internal control systems commensurate with its size and the nature of its operations, covering the financial propriety of transactions, safeguarding of assets, prevention and detection of fraud and error, the accuracy and completeness of accounting records, and compliance with applicable statutes, regulations and internal policies. The Company has in place internal financial controls with reference to the financial statements as contemplated under the Companies Act, 2013.

These systems are periodically reviewed by the Audit Committee in conjunction with the Companys internal auditors, M/s RP Rao & Co., and its statutory auditors, M/s MSPR & Co., who issued an unmodified audit opinion on the Companys standalone and consolidated financial statements for FY26 and reported that the Company has, in all material respects, an adequate internal financial controls system with reference to the financial statements which was operating effectively as at March 31, 2026. Observations arising from internal audit, together with managements responses and the status of remedial action, are reported to and reviewed by the Audit Committee on a periodic basis.

The Board, on the recommendation of the Audit Committee, considers the Companys internal financial controlsto be adequate and operating effectively, while recognising that no system of internal control can provide absolute assurance against error or irregularity, and that periodic review and updating therefore remain necessary.

12. Environmental, Social and Governance

As a software products company, the Companys direct environmental footprint is limited and arises principally from the energy consumed at its offices and from business travel. The Company nevertheless recognises the growing importance of environmental, social and governance considerations to its clients, its employees and its investors, and increasingly encounters ESG-related criteria within enterprise procurement processes. The Company is also focused on optimising product performance to improve infrastructure efficiency and therefore reduce resource consumption.

Across offices, the Company has taken steps to reduce environmental impact by banning single-use plastics and promoting recycling and responsible waste management practices. On the social front, the Company continues to support initiatives that contribute to the welfare of underprivileged communities and the well-being of its administrative staff, with a focus on giving back to society and creating positive social impact.

On the social dimension, the Companys platforms support financial inclusion and citizen service delivery outcomes through the multilingual, accessible and high-volume communication capabilities deployed by its clients in BFSI, telecom and government. On governance, the Companys certification programme, described in Section 5.2, and its internal control framework, described in Section 11, form part of the wider governance architecture reported in the Corporate Governance Report.

13. Cautionary Statement

Statements in this Management Discussion and Analysis that relate to the Companys objectives, projections, estimates, expectations or predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions and expectations of future events as at the date of this report.

Actual results could differ materially from those expressed or implied, on account of, among other factors, changes in the economic and regulatory environment in India and in the Companys key overseas markets; the pace and outcome of the DPDP Acts phased implementation and the rate at which enterprises convert compliance obligations into technology spending; competitive conditions and pricing in the enterprise communications and Al platform market; the pace of technological change and its effect on the useful life of the Companys platform investments; the Companys ability to secure new orders and to restore revenue growth; its ability to collect its receivables and manage client concentration; movements in foreign exchange rates; the availability and cost of skilled personnel; cyber security incidents; and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such statements.