Logica Infoway Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

India demonstrated resilience and strong domestic economic fundamentals during FY 2025-26. The Indian economy remained supported by domestic consumption, investment activity, digitalisation, infrastructure development and policy initiatives focused on strengthening manufacturing and technology capabilities.

The electronics and information technology sectors remained important contributors to Indias economic growth. The Government of India maintained its focus on promoting domestic electronics manufacturing, component localisation and development of the digital ecosystem through various policy initiatives. The Electronics Component Manufacturing Scheme, notified in April 2025, is aimed at strengthening the domestic component ecosystem and integrating Indian companies with global value chains.

The IT hardware ecosystem also benefited from policy support. As of June 2026, the PLI Scheme for IT Hardware had resulted in cumulative production of approximately ?24,385.89 crore, reflecting the strengthening of domestic IT hardware manufacturing capabilities.

The increasing penetration of smartphones, laptops, personal computing devices, networking equipment, consumer electronics and other digital products is supporting demand across retail, distribution and e-commerce channels. At the same time, the industry remains characterised by rapid technological changes, shorter product cycles, intense competition, evolving consumer preferences, inventory management challenges and pricing pressures.

Against this backdrop, the Company remains focused on strengthening its retail footprint, distribution network, e-commerce capabilities and relationships with leading OEM and technology brands.

2. OVERVIEW-FY2025-26

Market Overview:

Indias economy maintained a strong growth trajectory during FY 2025-26. According to the provisional estimates released by the Ministry of Statistics and Programme Implementation, real GDP recorded growth of 7.6% during FY 2025-26. Private consumption, investment and services activity remained important drivers of economic activity.

The electronics and technology ecosystem evolved rapidly, supported by increasing digital adoption, expansion of organised retail, growth in e-commerce, greater technology penetration and increasing demand for connected devices.

The Indian electronics industry is also witnessing increasing localisation of manufacturing and supply chains. Government initiatives such as the PLI schemes and Electronics Component Manufacturing Scheme are aimed at developing a stronger domestic electronics ecosystem.

The Indian IT/ITeS ecosystem also remains a significant contributor to the economy, with increasing adoption of cloud computing, artificial intelligence, cybersecurity, digital platforms and technology-enabled business processes.

Company Overview:

During FY 2025-26, the Company strengthened its position as a multi-vertical player in the technology and electronics ecosystem, with operations spanning Retail, Distribution, E-Commerce and Exports.

The Company further developed its relationships with leading global and domestic technology brands and focused on enhancing customer reach, operational efficiency, inventory management and working capital utilisation.

During the year, the Company evaluated and pursued opportunities for expansion across its retail and distribution network, while maintaining a strong focus on profitability, operational discipline and efficient capital allocation.

The Company also leveraged technology and process improvements to enhance visibility across inventory, sales, procurement, receivables and other operational functions.

During FY 2025-26, the Company continued to strengthen its retail and distribution presence. It added 24 net new COCO stores, taking the network to 77 stores covering over 38,000 sq. ft. The Company also achieved an all-time high revenue of ?13,157 Mn, with EBITDA of ?306 Mn and PAT of ?142 Mn. Further, the Company secured a Tier-1 Samsung Notebooks distribution mandate covering West Bengal, Delhi-NCR, Uttar Pradesh and Haryana, further strengthening its distribution footprint.

Management Overview:

FY 2025-26 was a year of business consolidation and operational strengthening for the Company. The Company remained focused on achieving sustainable growth across its business verticals while strengthening its market presence and maintaining financial and operational discipline.

The Company prioritised the following key areas:

• expansion and optimisation of its retail network;

• strengthening relationships with leading OEMs and technology brands;
• increasing distribution reach across existing and emerging markets;
• scaling its e-commerce and fulfilment capabilities;
• improving inventory planning and working capital management;
• strengthening internal processes and controls;
• enhancing technology-enabled operational visibility; and
• maintaining a balanced approach towards growth, profitability and capital efficiency.

The financial performance of the Company for FY 2025-26:

Metric	Value
Revenue from Operations	?13,157 Mn, +17.6% YoY growth (exceeding 12%-16% guidance)
Gross Margin	5.91%, reflecting 23.5% YoY growth and an all-time company high
EBITDA	?306 Mn, up 29.5% YoY, supported by margin expansion from retail scale
Profit After Tax (PAT)	?142 Mn, registering 35.0% YoY growth, driven by operating leverage across segments
Earnings Per Share (EPS)	?7.97, up 30.2% YoY, marking a three-decade peak

3. KEY OPERATIONAL VERTICALS

Retail-Expanding Customer Reach:

The retail vertical remains an important component of the Companys growth strategy. During FY 2025-26, the Company focused on strengthening its physical retail presence and improving the productivity of its existing store network.

The Company served customers through a combination of brand-focused and multi-brand retail formats, offering smartphones, laptops, IT hardware, accessories and other consumer technology products.

The Company placed emphasis on store-level productivity, customer experience, inventory availability and efficient utilisation of retail infrastructure.

Distribution - Strengthening Scale and Market Reach:

Distribution remains one of the Companys core business verticals and provides the Company with an extensive market reach through its network of channel partners and warehouses.

During FY 2025-26, the Company strengthened its distribution relationships with leading technology and electronics brands and focused on improving fulfilment efficiency, inventory management and delivery capabilities.

The Companys distribution operations continue to benefit from its established relationships with OEMs, channel partners and retailers.

E-Commerce - Expanding Digital Fulfilment Capabilities:

The Companys e-commerce vertical supported the growing preference for digital purchasing and fulfilment of technology products.

The Company worked with leading e-commerce platforms and brand partners, with emphasis on efficient order processing, inventory availability, fulfilment and delivery.

The increasing adoption of online commerce and digital purchasing behaviour presents opportunities for the Company to further scale its e-commerce operations while maintaining operational and working capital discipline.

Exports - Selective and Value-Focused Approach

The Company undertook export activities based on market opportunities, product demand and commercial viability.

The Companys approach remains focused on selectively pursuing export opportunities where appropriate margins, customer relationships and efficient utilisation of working capital can be achieved.

Going forward, the Company will evaluate export opportunities selectively, while maintaining a balanced approach between domestic growth opportunities and international business.

4. OPPORTUNITIES

a. Growing Digital and Technology Adoption
Increasing digitalisation, smartphone penetration, adoption of personal computing devices and demand for technology-enabled products are creating growth opportunities for the Company across its retail, distribution and e-commerce businesses.

b. Expansion of Organised Retail
The shift towards organised retail provides opportunities for the Company to expand its presence across existing as well as emerging markets. Increasing consumer preference for trusted brands, organised retail formats and enhanced after-sales service can support the Companys retail expansion strategy.

c. Growth of E-Commerce and Omnichannel Commerce
The growth of e-commerce provides opportunities to expand the Companys customer reach beyond physical retail locations. Integration of physical retail, distribution and digital channels can enable the Company to serve customers more efficiently.

d. Strong OEM and Brand Relationships
The Companys relationships with leading technology and electronics brands provide access to a wide product portfolio and enable the Company to participate in emerging product categories and market opportunities.

e. Expansion into Emerging Markets
The Company may leverage its existing infrastructure, distribution capabilities and retail expertise to expand into emerging cities and markets where demand for smartphones, IT hardware and consumer electronics is witnessing steady growth.

f. Technology-led Operational Efficiency
Continued adoption of enterprise technology, automation, data analytics and improved inventory management systems provides opportunities to enhance operational efficiency, improve decision-making and optimise working capital.

5. THREATS

a. Competitive Environment
The Companys businesses operate in highly competitive markets comprising organised retailers, regional players, e-commerce platforms and other distributors. Increased competition may result in pricing pressure, higher promotional expenditure and pressure on margins.

b. Rapid Technological Changes
The technology and electronics industry is characterised by rapid product innovation and short product life cycles. Changes in technology or consumer preferences may result in inventory obsolescence and require continuous adaptation of product offerings.

c. Macroeconomic and Market Conditions
Changes in interest rates, inflation, consumer spending, foreign exchange rates, taxation, government policies and overall economic conditions may affect consumer demand and the Companys operating costs.

d. Supply Chain Disruptions
Disruptions in global or domestic supply chains, logistics constraints, availability of products, geopolitical developments or changes in trade policies may adversely affect product availability, procurement costs and delivery schedules.

e. Cybersecurity and Technology Risks
The Companys increasing dependence on information technology systems, digital platforms and electronic data exposes it to risks relating to system disruption, cybersecurity incidents, unauthorised access, data loss and other technology-related threats.

6. RISKS AND CONCERNS

The Company follows a structured approach towards identification, assessment and mitigation of business risks. Risks are reviewed periodically by the management and appropriate measures are undertaken to minimise their potential impact.

a. Geographic Concentration
A significant portion of the Companys operations may be concentrated in certain geographical markets. Any adverse economic, political, regulatory or competitive developments in such markets may affect business performance.

b. Dependence on Consumer Preferences
The Companys performance is influenced by consumer preferences, product launches, technology trends and changing demand patterns. Failure to accurately anticipate market trends may result in inventory accumulation, product obsolescence and pressure on margins.

c. Inventory Risk
The electronics and technology products handled by the Company generally have relatively short product life cycles. Effective inventory planning and liquidation are therefore important to avoid ageing and obsolescence.

d. Working Capital and Credit Risk
The Companys business requires efficient management of inventory, trade receivables and trade payables. Delays in collection or changes in credit conditions may adversely affect liquidity and working capital requirements.

e. Dependence on Brand and Vendor Relationships
The Company derives a significant portion of its business from relationships with established brands and vendors. Any material change in commercial arrangements, distribution rights, credit terms or supply arrangements may impact business operations.

f. Competition and Margin Pressure
Intense competition may result in price reductions, promotional offers and lower margins. The Company seeks to mitigate such risks through scale, product mix, operational efficiency, brand relationships and disciplined cost management.

g. Information Technology and Cybersecurity
The Companys operations depend significantly on information technology systems for inventory, sales, procurement, accounting, communication and business management. System failures, cyberattacks, malware, data breaches or third-party technology disruptions could affect business continuity.

h. Regulatory and Compliance Risk
Changes in applicable laws, regulations, taxation requirements, industry standards and regulatory policies may increase compliance requirements or affect the Companys business model and operating costs.

i. External Events
Natural calamities, geopolitical tensions, civil disturbances, extreme weather events, pandemics and other events beyond the Companys control may disrupt operations, supply chains and consumer demand.

The Company continuously monitors these risks and takes appropriate preventive and corrective measures based on their nature and potential impact.

7. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Pursuant to Regulation 34(3) read with Schedule V, Part B (1) of the SEBI (LODR) Regulations, 2015, key financial ratios for the financial year under review along with an explanation for any change of 25% or more as compared to the immediately preceding financial year are tabulated below.

RATIOS	NUMERATOR	DENOMINATOR	CURRENT PERIOD	PREVIOUS PERIOD	% VARIANCE	REASON FOR VARIANCE
Current Ratio (in times)	Current Assets	Current Liabilities	1.33	1.40	-5.21%	N.A.
Debt-Equity Ratio (in times)	Total Debt	Shareholders Equity	1.83	1.35	35.88%	Note*
Debt Service Coverage Ratio (in times)	Earning for Debt Service	Debt Service	0.17	0.20	-16.74%	N.A.
Return on Equity Ratio (%)	Profit after Tax	Average Shareholders Equity	14.93%	14.03%	6.40%	N.A.
Inventory Turnover Ratio (in times)	Sales (Revenue from Operations)	Average Inventory	11.25	11.57	-2.80%	N.A.
Trade Receivables Turnover Ratio (in times)	Sales (Revenue from Operations)	Average Trade Receivable	10.08	11.43	-11.79%	N.A.
Trade Payables Turnover Ratio (in times)	Net Credit Purchases	Average Trade Payables	23.35	23.11	1.02%	N.A.
Net Capital Turnover Ratio (in times)	Sales (Revenue from Operations)	Working Capital	15.88	16.02	-0.88%	N.A.
Net Profit Ratio (%)	Profit after Tax	Total Income	1.07%	0.94%	14.79%	N.A.
Return on Capital Employed (%)	Earning before Interest and Tax	Capital Employed	32.57%	29.37%	10.92%	N.A.

Note*: The variance in the Debt-Equity Ratio is attributable to the additional working capital loans availed from Bank of India and ICICI Bank, resulting in an increase in the ratio as compared to the previous year.

Except for the aforesaid variance, all other variations in the ratios in comparison with the previous year are less than 25%.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the nature, scale and complexity of its operations.

• effectiveness and efficiency of operations;
• safeguarding of assets;
• prevention and detection of frauds and errors;
• accuracy and completeness of accounting records;
• reliability of financial reporting;
• compliance with applicable laws and regulations; and
• appropriate authorisation and approval of transactions.

The Companys internal controls are reviewed periodically by the management and through the internal audit mechanism. Significant observations arising from internal audit are placed before the Audit Committee for review and appropriate corrective action.

The Company has appointed M/s Punit Pandey & Associates, Chartered Accountants, Kolkata (FRN: 333246E) as Internal Auditors. The Internal Audit function undertakes periodic review of relevant business and control processes and reports its observations to the appropriate management and governance forums.

The Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems and monitors the implementation of corrective measures, wherever required.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human resources remain a key enabler of the Companys growth and operational performance. During FY 2025-26, the Company strengthened its talent base across retail, distribution, e-commerce, finance, technology and corporate functions, with a focus on attracting and retaining capable professionals from diverse industries and fostering a culture of enhanced capability, performance and continuous learning.

During the year, the Company implemented HRMS automation across the organisation through HR One, enabling greater efficiency and transparency in various HR processes. The Performance Management System (PMS) is also under implementation to facilitate structured performance evaluation, recognise and reward employee contributions, identify development needs and support targeted training and upskilling.

The Company places emphasis on employee development, functional training, performance management and engagement, while fostering a professional and performance-oriented work environment. These initiatives are aimed at strengthening organisational capabilities and supporting the Companys growth objectives.

The total number of employees as at March 31, 2026, was 232.

Industrial relations remained satisfactory during the year.

10. DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company for the financial year ended March 31, 2026 have been prepared in accordance with the applicable Indian Accounting Standards and other applicable provisions of the Companies Act, 2013. The accounting policies adopted by the Company are consistent with those followed in the previous financial year, except for changes, if any, arising from amendments to applicable accounting standards or other regulatory requirements.

11. CAUTIONARY STATEMENT

Statements in this Annual Report, particularly those relating to the Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may constitute "forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations concerning future events and are subject to various risks and uncertainties, including economic conditions, changes in government policies and regulations, taxation, competition, technology developments, consumer demand, supply chain conditions, geopolitical developments and other factors beyond the Companys control. Actual results, performance or achievements may differ materially from those expressed or implied in such forward-looking statements. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

By the Order of the Board For LOGICA INFOWAY LIMITED

Sd/- GAURAV GOEL Managing Director DIN- 00432340

Sd/- SHWETA GOEL Whole Time Director DIN- 00434584

Place: Kolkata Date: 01/09/2026