Kody Technolab Ltd Management Discussions

1. Global Economy And Outlook:

According to industry analyses from the International Federation of Robotics, IDC, and other global market intelligence sources, 2024 marked a significant acceleration in the adoption of intelligent automation and robotics. Enterprises worldwide have moved from pilot programs to scaled deployments of Al-powered robotic systems, driven by the dual imperatives of operational efficiency and enhanced customer engagement. With stabilizing inflation, easing interest rates, and improving supply chain conditions, capital investment in automation technologies is projected to strengthen in 2025.

Global spending on robotics and AI solutions is expected to grow at a double-digit pace, underpinned by expanding use cases across high-footfall public spaces, logistics hubs, manufacturing plants, and smart infrastructure. Service robotics, in particular, recorded over 30% year-on-year growth in 2023, with strong demand in hospitality, transport, warehousing, and public safety applications. This momentum is supported by the convergence of hardware innovation, advanced AI models, and cloud-based platforms that enable real-time data intelligence and monetization.

Enterprises are increasingly seeking full-stack technology partners capable of delivering integrated hardware, AI, and platform solutions ? from autonomous service robots and industrial automation systems to media-enabled engagement platforms and IoT-driven operational intelligence. We expect the intelligent robotics and AI industry to play a pivotal role in enabling organisations to achieve measurable ROI in areas such as autonomous customer service, data-driven advertising, operational excellence, workforce augmentation, safety and compliance, and sustainable growth.

2. Indian Economy And Outlook:

India continues to be one of the fastest-growing major economies, with GDP expected to maintain a robust trajectory in 2025 and 2026, supported by strong domestic demand, sustained infrastructure investment, and a dynamic services and manufacturing base. Government initiatives such as Make in India, Digital India, and the Smart Cities Mission are accelerating the adoption of advanced technologies, creating a fertile environment for robotics, AI, and automation-led solutions.

Policy incentives, including the Production-Linked Incentive (PLI) schemes for electronics, drones, and high-tech manufacturing, are fostering indigenous development of intelligent systems and encouraging private sector investment in R&D. Demand for automation is expanding beyond manufacturing into sectors such as hospitality, retail, transport, public safety, and healthcare, driven by the need for efficiency, safety, and enhanced customer experience.

Indias Industry 4.0 adoption curve is steepening, with enterprises integrating connected devices, autonomous machines, and Al-powered platforms into their operations. The domestic service robotics market is witnessing rapid growth, aided by increasing acceptance of Robots-as-a-Service (RaaS) models, rising urbanization, and the countrys push towards becoming a global hub for high-tech exports.

While external risks such as global trade headwinds, commodity price volatility, and geopolitical uncertainties remain, the longterm outlook for automation and AI in India is positive. Steady economic growth, a young and tech-sawy workforce, and a supportive policy framework are expected to drive sustained demand for intelligent robotics and integrated platform solutions across both private and public sectors.

3. Industry Structure And Development:

The global robotics industry is entering a sustained growth phase, supported by rising enterprise demand for automation, AI integration, and connected platform capabilities. According to BCC Research, the global robotics market is expected to expand from approximately USD 78.4 billion in 2024 to USD 165.2 billion by 2029, reflecting a CAGR of 16.1%. Broader market estimates project growth from USD 48.2 billion in 2024 to USD 233.7 billion by 2034, at a CAGR of 17.1%. Within this, the service robotics segment is projected to increase from USD 54.5 billion in 2024 to USD 212.8 billion by 2034, growing at a 15% CAGR, driven by adoption across logistics, hospitality, public safety, and healthcare. The global industrial robotics market is also expanding steadily, expected to reach USD 60.56 billion by 2030 from USD 33.96 billion in 2024 (CAGR 9.9%).

India is emerging as one of the fastest-growing robotics markets in the Asia-Pacific region. The domestic robotics industry, valued at USD 1.70 billion in 2024, is projected to reach USD 6.81 billion by 2033, registering a CAGR of 16.4%. The Indian industrial robotics segment alone is forecast to grow from USD 1.39 billion in 2023 to USD 3.45 billion by 2030 (CAGR 13.8%), with alternate estimates placing it at USD 8.26 billion by 2030 (CAGR 15%). In 2023, India recorded 8,510 industrial robot installations, up 59% year-on-year, ranking 7th globally. The countrys operational stock of industrial robots has nearly doubled since 2018, reaching 44,958 units, reflecting an average annual growth rate of 14%.

For Kody Technolab, these market dynamics represent a multidimensional opportunity. Our positioning at the intersection of robotics, AI platforms, and AdTech enables participation in diverse growth areas ? from autonomous customer engagement in retail and hospitality to Al-enabled surveillance for public safety and logistics automation in industrial hubs. The convergence of hardware innovation, AI intelligence, and platform monetization is reshaping the industry, with enterprises increasingly seeking partners who can deliver full-stack intelligent systems that are adaptable, scalable, and revenuegenerating.

Looking ahead, the integration of AI into robotics will remain the defining trend, as organisations seek intelligent, connected, and monetizable automation solutions. Supported by strong market growth projections both globally and domestically, Kody Technolab is strategically positioned to capture value in this next phase of the automation economy.

4. Opportunities And Threats:

Opportunities: Securities businesses are expected to benefit from the structural shift in the financial savings environment as well as the improving technology infrastructure of India. Some of the broad macro trends that underline the opportunities are:

1. Unique positioning offering customers Scale & Speed;

2. Build deep domain capabilities in key verticals

Threats: We are exposed to a wide variety of connected and interconnected risks. To ensure suitable risk prioritization and mitigation, we identify the internal and external events that may affect our strategies and potentially impact our results, capital, and reputation. Enterprise Risk Management (ERM) enables the management to efficiently deal with uncertainty and the associated risks and opportunities, along with enhancing the capacity to build shareholder value.

5. Segment-Wise Or Product-Wise Performance:

The Company is operating in only one segment i.e.AI Robotics segement. Therefore there is no requirement of Segment wise reporting.

6. Future Outlook:

The positive outcomes of our positioning as an organization with scale, expanded capabilities, and stronger partnerships continue to reflect in our order inflow and pipeline. Through the year, we have pivoted our portfolio to align with the current spend areas and are positioned well to capture the discretionary spend wave when itreturns. We have entered FY25 with a stronger foundation to drive the revenue synergies. As we reflect on our achievements and look to the future, we are confident that the insights we have gained and the strategies we have implemented will enable us to execute better in FY25. We are excited to see what the future holds and committed to making the most of every opportunity that comes our way.

7. Risks And Concerns:

1. Risk of economic slowdown or recession in global economic growth

2. Revenue Risk - Slackness in demand from existing customers impacting revenue growth

3. Cyber Security and Privacy Risks - Risk of data theft, deviation to information security requirement and cyber attacks

4. Human Capital Risks - High attrition levels, Involuntary churn, and employee productivity due to work from home (WFH)

5. Statutory Compliance Risk - Tracking changing compliance requirements across geographies

6. Technology Risk - Risk of deficiencies in emerging competencies

8. Internal Control Systems And Their Adequacy:

The Company has implemented proper system for safeguarding the operations / business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements.

The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The Company has internal audit and verification at regular intervals.

The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

9. Discussion On Financial Performance With Respect To Operational Performance:

The financial performance of the Company for the Financial Year 2024-25 is described in the report of Board of Directors of the Company.

10. Material Developments In Human Resources / Industrial Relations Front Including Number Of People Employed:

The cordial employer-employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

11. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be “forward looking statement” within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office:		By the order of the Board,
2nd Floor,Block-J, Safal Mondeal Retail Park,		Kody Technolab Limited
Nr. Iscon Mall, Nr Rajpathclub, S.G Highway,
Bodakdev Ahmadabad - 380054
Place: Ahmedabad	Manav Patel	Manali Patel
	Managing Director	Whole-Time Director
Date: 19th August, 2025
	DIN: 07409757	DIN:07792457