G-Tec Janix Education Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

I) Indian Economy Overview

The Indian economy demonstrated strong resilience during FY 2025-26 despite global economic uncertainties, geopolitical developments and trade-related challenges. As per the latest official estimates, Indias real GDP grew by 7.6% during FY 2025-26, compared with 7.1% in FY 2024-25, while real Gross Value Added (GVA) grew by 7.7%. Growth was supported by domestic demand, investment activity and continued expansion across key sectors of the economy.

India continues to remain one of the fastest-growing major economies, supported by its large domestic market, demographic advantage, expanding digital economy, infrastructure investment and ongoing structural reforms.

For the education and skill development sector, Indias economic growth creates significant opportunities. The growing economy requires a larger pool of skilled and employable manpower across technology, finance, data, artificial intelligence, digital business and other emerging sectors. The increasing need for upskilling, reskilling and industry-relevant education is expected to support the long-term growth of the professional education and training industry.

The company continues to monitor economic developments and believes that Indias demographic strength, increasing adoption of technology and growing focus on employability provide significant opportunities for education and skill development providers. The Companys focus remains on aligning its programmes with evolving industry requirements and emerging employment opportunities.

II) GLOBAL ECONOMY

The global economy continued to face an uncertain environment during 2025-26. While technology investment and private-sector adaptability have supported economic activity, geopolitical tensions, trade disruptions and financial uncertainty continue to influence the global outlook.

Although the global economy continues to be affected by downside risks arising from conflict, trade fragmentation, commodity prices and financial conditions, however, at the same time, the increasing adoption of Artificial Intelligence, data technologies, automation and digital transformation is changing the global employment and skills landscape. Businesses and individuals are increasingly required to continuously upgrade their capabilities to remain relevant in a rapidly evolving technology environment.

This transition creates opportunities for professional education and training companies capable of providing relevant, practical, industry-oriented and continuously updated learning programmes.

III) INDUSTRY OVERVIEW - IT EDUCATION, PROFESSIONAL TRAINING AND SKILL DEVELOPMENT

The education and training industry is undergoing significant transformation due to rapid technological developments, changing employment requirements and the increasing importance of practical and industry-relevant skills.

The traditional approach of acquiring a qualification once and relying on it throughout a career is gradually being supplemented by continuous learning, upskilling and reskilling. Employers increasingly seek candidates with practical capabilities, technology skills, industry certifications and the ability to adapt to changing work requirements.

The demand for skills in Artificial Intelligence, Machine Learning, Data Analytics, Data Science, Cybersecurity, Cloud Technologies, Enterprise Applications such as SAP and Digital Marketing is expected to remain an important driver for the professional training sector.

The Government of India is also expanding its focus on future-ready skilling. The broader policy focus is also moving towards stronger alignment between education, skills and employment outcomes. Recent policy work has highlighted the importance of outcome-based skilling, industry participation, internships, credit recognition and better integration of education with employability.

For the company, these developments reinforce the importance of continuously updating its curriculum, strengthening industry and certification partnerships, improving practical learning and expanding access to emerging technology programmes.

The company provides career-oriented and professional training programmes through its education network and companys business is influenced by several important factors, including:

- Demand for job-oriented and professional education; - Changing technology and industry requirements; - Student and parent expectations regarding career outcomes; - Availability of qualified faculty and trainers; - Industry-recognised certifications; - Centre and franchise network performance; - Digital and online learning adoption; - Student acquisition and conversion costs; - Brand reputation and quality of academic delivery; and - The ability to continuously introduce relevant programmes.

The company believes that its future growth will depend on its ability to develop a stronger portfolio of high-value programmes, leverage technology for centralised and scalable learning delivery, build institutional and industry partnerships and strengthen the quality and performance of its centre network.

IV) FINANCIAL PERFORMANCE

A) Standalone Performance

During the year under review, the companys standalone total income was 555.63 Lakhs, as compared with 533.90 Lakhs during the corresponding previous year, reflecting growth in the companys total income.

The total comprehensive loss for the year stood at 42.23 Lakhs, compared with a total comprehensive loss of 275.27 Lakhs during the previous year.

The significant reduction in losses reflects an improvement in the financial performance of the company. Management continues to focus on improving revenue generation, operational efficiency, cost management and strengthening profitable business activities.

B) Consolidated Performance

During the year under review, the consolidated total income stood at 781.94 Lakhs, as compared with 788.85 Lakhs during the corresponding previous year.

The consolidated total comprehensive loss for the year stood at 92.41 Lakhs, as compared with a loss of 337.86 Lakhs during the previous year.

The managements focus remains on improving the quality of revenue, strengthening collections, improving centre productivity, controlling costs and developing scalable business opportunities.

V) BUSINESS AND STRATEGIC INITIATIVES

During the year and subsequent to the year under review, the company continued to focus on strengthening its academic offerings and identifying emerging opportunities in the education and skill development sector.

The company is focusing on programmes and initiatives in areas such as:

- Artificial Intelligence and AI tools; - Machine Learning and Data Science; - Data Analytics and Data Visualisation; - SAP and Enterprise Applications; - Digital Marketing;

- Website and Front-End Technologies; - Industry and Global Certifications; - Zoho-related programmes and certifications; - GST and ITR-related practical training; - Institutional and college partnerships; and - Emerging technology and future-skills programmes.

The companys approach is to develop programmes that combine industry relevance, practical exposure, technology tools, certification opportunities and employability-oriented learning outcomes.

The company is also exploring opportunities to expand its online and hybrid learning capabilities, enabling expert faculty and specialised programmes to be delivered across a wider geographical area.

VI) OPPORTUNITIES

A. Artificial Intelligence and Emerging Technologies

Artificial Intelligence is transforming industries and redefining the skills required by students and professionals. The Government and industry are increasingly developing structured learning pathways across AI, Machine Learning, Data Science, Generative AI and other emerging technologies. This provides a significant opportunity for the company to develop relevant training programmes and continuously update its course portfolio.

B. Upskilling and Reskilling

Rapid technological change is increasing the need for continuous learning. Students, graduates and working professionals require new skills to remain relevant in the employment market. The company sees significant opportunities in providing short-term, modular, certification-oriented and advanced professional programmes for different learner categories.

C. Industry-Recognised Certifications

Industry and global certifications can strengthen the employability value proposition of training programmes. The company intends to explore and expand collaborations with technology, software and certification partners to offer programmes aligned with market requirements.

D. Online and Hybrid Learning

Technology enables specialised programmes to be delivered beyond the geographical limitations of individual centres. A stronger online and hybrid delivery model can help the company:

- Reach students across multiple locations;

- Optimise expert faculty utilisation;

- Offer specialised programmes from central locations; - Improve standardisation of academic delivery; and - Create scalable revenue opportunities.

E. College and Institutional Partnerships

The increasing focus on employability, skill development and integration of professional skills with formal education provides opportunities for collaboration with colleges and educational institutions. The company can explore programmes, certifications, workshops, technology training and institutional partnerships aligned with evolving educational and employment requirements.

F. NEP and Credit-Based Learning Opportunities

The evolving education ecosystem and the focus on flexible learning, skill recognition and credit-based frameworks may create opportunities for education and training institutions to collaborate with colleges and learners. The company intends to evaluate opportunities relating to relevant education frameworks, institutional partnerships and credit-linked learning initiatives, subject to applicable regulations and approvals.

G. Franchise and Network Expansion

A well-managed franchise and centre network can provide opportunities for geographical expansion with relatively efficient capital deployment. However, future expansion will need to focus on centre quality, financial discipline, academic standards, technology adoption and sustainable unit economics rather than expansion based solely on the number of centres.

VII) THREATS, RISKS AND CONCERNS

A. Rapid Technology Obsolescence: Technology courses can become outdated quickly. AI and other emerging technologies are evolving rapidly, requiring continuous curriculum review and faculty upskilling.

Mitigation: Regular curriculum revision, industry engagement, trainer development and introduction of updated technology tools.

B. Intense Competition: The company operates in a highly competitive environment, including competition from EdTech companies, universities, colleges, independent training providers, online learning platforms and technology companies.

Mitigation: Focus on practical training, industry relevance, certifications, learner outcomes, brand development and quality delivery.

D. Changing Student Expectations: Students increasingly expect practical learning, access to modern tools, certifications, career guidance and placement support. Failure to meet communicated expectations may affect student satisfaction and brand reputation.

Mitigation: Clear communication, defined course deliverables, improved academic monitoring and continuous student feedback.

E. Centre and Franchise Performance Risk: Variations in the performance and compliance of centres may affect revenue, collections, academic quality and brand reputation.

Mitigation: Stronger ERP monitoring, regular academic and operational reviews, standard operating procedures, compliance monitoring and financial discipline.

F. Collection and Receivable Risk: Outstanding student fees and franchise-related receivables can affect working capital and cash flows.

Mitigation: Strengthening collection systems, regular ageing analysis, ERP monitoring and timely follow-up and recovery actions.

VIII) OUTLOOK

The outlook for the IT education, professional training and skill development sector remains positive over the medium to long term. Indias demographic advantage, digital transformation, expansion of the technology economy and increasing requirement for employable skills are expected to create continued demand for education and professional training.

At the same time, the sector is changing rapidly. Success will depend not merely on offering traditional computer courses, but on the ability to continuously provide relevant, practical, industry-aligned and outcome-oriented learning.

The company intends to focus on the following strategic priorities:

1. Strengthening high-growth technology and professional programmes, particularly in AI, Data, Analytics, SAP and other emerging domains.

2. Expanding industry and certification partnerships to improve programme relevance and learner outcomes.

3. Developing scalable online and hybrid learning capabilities.

4. Strengthening college and institutional partnerships.

5. Improving centre productivity and academic standardisation.

6. Strengthening franchise governance, collections and financial discipline.

7. Improving student learning outcomes and career-oriented services.

8. Expanding into new business opportunities and markets where supported by sustainable economics.

9. Leveraging technology and AI to improve learning delivery, operations and customer engagement. 10. Improving profitability and operational efficiency through disciplined growth and cost management.

The company believes that the growing demand for future-ready skills presents significant opportunities. However, the ability to capture these opportunities will depend on effective execution, continuous curriculum innovation, strong academic quality, financial discipline and the ability to adapt rapidly to technological and market changes.

IX) CAUTIONARY STATEMENT: Statements in this Management Discussion and Analysis Report describing the companys objectives, expectations, projections, estimates and forecasts may be forward-looking statements within the meaning of applicable laws and regulations.

Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, industry developments, competition, technological changes, regulatory developments, availability of qualified personnel, market conditions and other factors beyond the companys control.

CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

Sr. No. Key Financial Ratio		*FY 2025-26	*FY 2024-25
1. Current Ratio	%	2.68	3.00
2. Debt Equity Ratio	%	0.14	0.13
3. Debt Service Coverage Ratio	%	(0.23)	(2.43)
4. Return on Equity Ratio	%	(0.05)	(0.30)
5. Inventory Turnover Ratio	%	-	-
6. Trade Receivable Turnover Ratio	%	4.80	2.78
7. Trade Payable Turnover Ratio	%	-	-
8. Net Capital Turnover Ratio	%	2.97	1.78
9. Net Profit Ratio	%	(7.15%	(52.09)
10. Return on Captial Employed	%	(0.04)	(0.29)
11. Return on Investment	%	-	-

*Previous years Figures have been regrouped / rearranged wherever necessary