ITCONS E-Solutions Ltd Management Discussions

ECONOMIC OVERVIEW Global Economic Scenario

The global economy continued to exhibit resilience during calendar year 2025, achieving a GDP growth rate of 3.2%, as per International Monetary Fund (IMF) despite persistent geopolitical conflicts, trade policy uncertainties, inflationary pressures, and volatile financial markets. The easing of inflation across several advanced economies, coupled with gradual normalization of monetary policies, supported global economic activity. Although growth remained uneven across regions, resilient labour markets, technological innovation, increasing digital adoption, and investments in infrastructure and clean energy continued to support medium-term economic prospects.

Advanced economies experienced moderate growth owing to relatively stable consumer demand and easing inflationary trends, while emerging market economies continued to outperform on account of favourable demographics, robust domestic demand, and sustained public investments. The increasing adoption of Artificial Intelligence (AI), automation, cloud computing, and digital technologies transformed business models across industries, significantly influencing practices.

Global trade witnessed gradual recovery despite supply chain realignments and changing geopolitical dynamics. Organizations increasingly focused on building resilient supply chains, strengthening operational agility, and enhancing workforce productivity through technology-enabled solutions. Businesses across sectors accelerated investments in digital transformation, creating significant demand for skilled professionals and specialised workforce solutions.

Global Economic Outlook

According to the International Monetary Fund (IMF), the global economy is expected to remain resilient in 2025 despite geopolitical tensions, trade policy uncertainties and evolving macroeconomic conditions. Inflationary pressures are moderating across several economies, supporting gradual monetary policy easing, while fiscal policies and commodity prices are expected to remain subject to country-specific and global developments. The medium- to long-term outlook remains positive, supported by resilient labour markets, technological innovation, digital transformation and infrastructure investments. The increasing adoption of Artificial

Intelligence (AI), automation, cloud computing and other digital technologies is transforming business models and creating growing demand for specialised skills and flexible workforce solutions.

Global trade is expected to improve gradually as businesses diversify supply chains and strengthen operational resilience. Organisations are increasingly focusing on technology-driven solutions, workforce optimisation and productivity enhancement, creating sustained opportunities for the staffing and recruitment industry, particularly in sectors requiring skilled professionals and digital capabilities.

Indian Economy

India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by strong domestic consumption, robust government capital expenditure, resilient financial institutions, expanding manufacturing activities and sustained growth in the services sector. Policy reforms, digital transformation, infrastructure development and increasing private investments further strengthened the countrys economic fundamentals.

Government initiatives such as Make in India, Digital India, Skill India, Startup India, PM Gati Shakti and the Production Linked Incentive (PLI) schemes continued to promote industrial growth, employment generation and ease of doing business. Investments in transportation, renewable energy, defence, logistics, electronics and semiconductor manufacturing further supported economic activity and created employment opportunities.

India also strengthened its position as a preferred global destination for Global Capability Centres (GCCs), engineering services, digital technology, financial services, healthcare and business process management. The countrys favourable demographics, growing middle class, increasing urbanisation, rapid digital adoption and entrepreneurial ecosystem are expected to provide a strong foundation for sustained long-term economic growth and continued demand for skilled workforce solutions.

Indian Economic Outlook

India is expected to maintain its position as one of the worlds fastest-growing major economies during FY 2025-26, supported by strong domestic consumption, public infrastructure spending, improving private investment and a resilient services sector. Sound macroeconomic fundamentals, a stable financial system and continued policy reforms are expected to support economic growth despite global uncertainties. The Governments continued focus on infrastructure, manufacturing, digital transformation and employment generation through initiatives such as Make in India, Digital India, Skill India, PM Gati Shakti and PLI schemes is expected to strengthen industrial activity. Investments in transportation, logistics, renewable energy, electronics, defence and semiconductor manufacturing are likely to support business expansion and create new employment opportunities.

The services sector is expected to remain a key growth driver, supported by IT, financial services, healthcare,

GCCs and business process management. While geopolitical developments, global trade conditions and inflation may pose challenges, Indias large domestic market, favourable demographics, policy continuity and increasing digital adoption are expected to sustain economic momentum and create continued opportunities for businesses, including the staffing and recruitment industry.

INDUSTRY OVERVIEW

Global Staffing and Recruitment Industry

The global staffing and recruitment industry is expected to witness steady growth during FY 2025-

26, driven by evolving workforce needs, technological advancements and increasing demand for employment models. Organisations are increasingly focusing on workforce optimisation, cost efficiency and access to specialised talent, supporting demand for staffing, recruitment, managed workforce and RPO services.

The adoption of ArtificialIntelligence (AI), automation, cloud computing and digital technologies is transforming recruitment through faster talent acquisition, data-driven hiring and improved workforce planning. The expansion of GCCs, digital transformation and cross-border operations is also creating demand for skilled professionals, particularly in IT, engineering, healthcare, financial services, cybersecurity and data analytics.

Despite challenges from geopolitical uncertainties, labour regulations and economic volatility, the long-term outlook remains positive. Increasing adoption of hybrid, contract and project-based workforce models, along with investments in reskilling and technology-enabled recruitment, is expected to create sustained opportunities for staffing companies globally.

Indian Staffing and Recruitment Industry

Indias staffing and recruitment industry continues to emerge as a fast-growing segment of the organised services sector, driven by increasing adoption of flexible workforce models, cost optimisation and changing business requirements. The industry has evolved beyond traditional manpower services to provide integrated solutions including permanent recruitment, contract staffing, payroll outsourcing, compliance management, RPO and talent consulting.

Growing formalisation of employment, digitalisation of HR processes, labour reforms and greater focus on statutory compliance are driving demand for organised and technology-enabled staffing solutions. Demand remains strong across sectors including IT, BFSI, healthcare, manufacturing, engineering, logistics, retail, e-commerce, telecommunications, infrastructure and renewable energy, further supported by the expansion of Global Capability Centres (GCCs).

The increasing adoption of Artificial Intelligence (AI), automation, analytics and cloud-based recruitment platforms is transforming talent acquisition and workforce management. Supported by Indias favourable demographics, rising skill development initiatives and increasing formal employment, the staffing and recruitment industry is expected to maintain healthy long-term growth.

COMPANY PERFORMANCE REVIEW

Business Overview flexible ITCONS e-Solutions Limited ("ITCONS" or "the

Company") is a professionally managed workforce solutionscompanyengagedinprovidingcomprehensive staffing,recruitment, payroll management, compliance support and allied human resource services across diverse industry sectors. The Company has established itself as a trusted partner for organisations seeking reliable, compliant and technology-enabled workforce solutions.

Over the years, ITCONS has continuously strengthened its service offerings by combining domain expertise with digital technologies, enabling faster recruitment cycles, improved workforce deployment, enhanced compliance management and superior client servicing. The Company caters to a diversified clientele comprising Government organisations, Public

Sector Undertakings (PSUs), Information Technology companies, Engineering enterprises, Educational Institutions, Healthcare organisations, Manufacturing companies, Financial Institutions and other corporate entities.

The Companys business philosophy is centred on delivering customised workforce solutions, maintaining the highest standards of regulatory compliance, and creating long-term value for its stakeholders through operational excellence, technological innovation and sustainable growth.

Business Performance during FY 2025 26

FY 2025 26 marked another year of significant progress for ITCONS e-Solutions Limited. Despite global uncertainties and evolving workforce dynamics, the Company delivered healthy revenue growth and improved profitability by leveraging favourable industry trends, strengthening customer relationships and enhancing operational efficiency.

During the year, the Company continued to focus on expanding its market presence while maintaining disciplined execution across all functional areas.

Strategic emphasis on customer acquisition, technology-enabled recruitment, process automation and compliance After Tax ( in excellence enabled the Company to strengthen its competitive position within the organised staffing industry.

The Companys diversified business model, experienced management team and prudent financial policies contributed to sustained business momentum throughout the financial year.

FINANCIAL PERFORMANCE REVIEW

Financial Review

FY 2025 26 was a year of robust financial performance for ITCONS e-Solutions Limited, underpinned by

Key Financial Ratios sustained demand for organised staffing solutions, expansion of client relationships, disciplined execution, and prudent financial management. The Company maintained its growth momentum by strengthening its core staffing and recruitment business while continuing to focus on operational efficiency, customer satisfaction, and compliance excellence.

Financial Highlights

Particulars	FY 2025 26	FY 2024 25	Growth (%)
Revenue from Operations ( in Lakhs)	8,774.36	5,598.42	56.73%
Other Income ( in Lakhs)	201.37	111.30	80.93%
Total Income ( in Lakhs)	8,975.73	5,709.72	57.20%
Profit Before Tax ( in Lakhs)	624.31	445.70	40.08%
Profit Lakhs)	525.65	324.96	61.76%
Basic Earnings Per Share ( )	8.05	6.43	25.19%

KEY FINANCIAL RATIOS AND ANALYSIS

The Company regularly monitors key financial indicators to assess its operational efficiency, liquidity, solvency, and capital utilisation. During FY 2025 26, the Companys reflected financialratios sustained business growth, improved prudent financial management.

Particulars	FY 2025 26	FY 2024 25	% Change	Remarks
Debtors Turnover Ratio	3.93	3.51	11.97%	Improved due to higher revenue from operations during the year with efficient managementof trade receivables.
Current Ratio	2.45	3.18	(22.96%)	Marginal decline owing to increase in current liabilities, primarily other current liabilities, despite growth in current assets.
Debt-Equity Ratio	0.06	0.14	(57.14%)	Significant improvement due to substantial increase in shareholders funds following conversion of warrants into equity shares and retention of profits, along with reduction in borrowings.
Interest Coverage Ratio	11.24	15.33	(26.68%)	Declined mainly on account of higher finance costs during the year despite improvement in operating profits.
Operating Profit Margin (%)	7.84%	8.53%	(8.09%)	Slight decline due to increase in employee benefitand operating expenses in line with business expansion.
Net Profit Margin (%)	6.01%	5.81%	3.44%	Improved owing to higher profitability and growth in revenue from operations.
Particulars	FY 2025 26	FY 2024 25	% Change	Remarks
Return on Capital Employed (%)	11.27%	14.82%	(23.95%)	Declined due to significant increase in capital employed following infusion of equity through warrant conversions. Declined primarily because of a substantial increase in net worth pursuant to conversion of warrants into equity shares,
Return on Net Worth (%)	11.97%	17.98%	(33.43%)	whereas the increase in profit after tax was comparatively lower.

Management Analysis

The improvement in the Companys financial performance during FY 2025-26 was supported by healthy revenue growth, disciplined cost management, efficient deployment of resources, and continued focus on operational excellence. The Company maintained a balanced capital structure and adequate liquidity, enabling it to support business expansion while preserving financial conduct of business operations, safeguarding

RISK MANAGEMENT

The Company recognises that effective risk management is critical to achieving its strategic objectives and sustaining long-term value creation.

The Board of Directors overseesthe Companysrisk authority levels, and management framework, while the management regularly identifies, assesses, monitors, and mitigates key business risks.

Enterprise Risk Management Framework

Risk Identification ? Risk Assessment ? Mitigation Planning ? Monitoring ? Reporting ? Continuous Improvement

Key Business Risks and Mitigation Measures

Risk	Impact	Mitigation
Talent Availability Difficultyintimely employee referrals, campus Client Concentration	deployment Dependence on large customers	Diversified sourcing channels, hiring, and talent database development. Diversification across industries and expansion of the client base. Continuous monitoring of legal
Regulatory Changes	Compliance and operational impact	developments and periodic compliance reviews.
Technology & Cybersecurity	Data loss or operational disruption	Investment in IT infrastructure, cybersecurity measures, and periodic system audits.
Credit Risk	Delay in customer payments	Credit evaluation, regular receivable monitoring, and effective collection mechanisms.
Market Competition	Pricing pressure	Focus on quality, customised solutions, technology adoption, and client relationship management.

The Company regularly reviews its risk management practices to ensure that emerging risks are identified promptly and appropriate mitigation measures are implemented.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an effective internal control framework designed to ensure the orderly and efficient of assets, accuracy of financial reporting, and compliance with applicable laws and regulations. The internal control environment is supported by documented policies, standard operating procedures, maker-checker defined mechanisms across key business functions. The

Company also leverages technology to strengthen process controls, improve operational efficiency, and enhance data integrity.

The Audit Committee periodically reviews the adequacy and effectiveness of internal controls, internal audit findings, and corrective actions. Internal auditors conduct risk-based audits covering operational, financial,and compliance areas, and their observations are placed before the Audit Committee for review. Management believes that the existing internal control systems are adequate and commensurate with the nature and scale of the Companys operations and provide reasonable assurance regarding the reliability of financial reporting and operational effectiveness.

HUMAN RESOURCES

People remain the cornerstone of the Companys success. As a human resource solutions provider,

ITCONS places significant emphasis on attracting, developing, and retaining talented professionals while fostering a culture of integrity, collaboration, innovation, and continuous learning.

The Company encourages continuous skill enhancement through structured training programmes, leadership development initiatives, and technology-driven learning platforms. Employees are provided opportunities to enhance their professional capabilities in recruitment, compliance, payroll management, customer service, and emerging HR technologies.

The Company is committed to maintaining a safe, inclusive, and performance-oriented workplace that promotes equal opportunities, diversity, employee engagement, and ethical conduct.

Strong employee relationships, transparent communication, and a culture of accountability continue to contribute to the Companys operational excellence and customer satisfaction.

FUTURE OUTLOOK

Indias long-term economic fundamentals continue to provide a favourable environment for the organised staffing and recruitment industry.

Increasing formalisation of employment, rapid digital transformation, infrastructure development, manufacturing expansion, growth of Global Capability Centres (GCCs), and continued government initiatives supporting employment generation are expected to drive sustained demand for professional workforce solutions.

The Company remains optimistic about the future and believes that the organised staffing sector will continue to benefit from increasing outsourcing payroll administration, workforce management and compliance services.

Going forward, ITCONS intends to focus on:

- Expanding its customer portfolio across diversified industries.

- Strengthening technology-enabled recruitment solutions.

- Enhancing digital HR platforms.

- Increasing operational efficiency.

- Expanding payroll and compliance management services.

- Building specialised recruitment capabilities.

- Strengthening governance and risk management practices.

- Creating long-term shareholder value through sustainable and profitable growth.

The management believes that the Companys strong financial position, diversified business model, experienced leadership team, technology-driven operations and customer-centric approach provide a solid foundation for future growth.

CAUTIONARY STATEMENT

Statements contained in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans, strategies or future outlook may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

These statements are based on managements current expectations, assumptions and beliefs concerning future events and are therefore subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. Such factors include changes in economic conditions, government policies, industry dynamics, regulatory developments, technological changes, competitive pressures and other factors beyond the Companys control.

Readers are advised not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances except as required under applicable law. of recruitment,