Marushika Technology Ltd Management Discussions

1. Industry Structure and Developments

1.1 Indian Economy

India retained its position as the worlds fastest-growing major economy for the fourth consecutive year. As per estimates released by the Ministry of Statistics and Programme Implementation, real GDP growth for FY2025-26 is estimated at 7.6% (revised upward from the first advance estimate of 7.4%), with nominal GDP growing 8.6% to approximately Rs 345 lakh crore (~USD 3.9 trillion). Growth was underpinned by resilient domestic consumption and public investment, with manufacturing recording double-digit growth and the secondary and tertiary sectors expanding above 9%. The Economic Survey 2025-26 projects FY27 real GDP growth of 6.8-7.2%, with Indias potential growth estimated at around 7%. Sustained public capital expenditure on transport infrastructure, defence indigenization, urban modernization and digital public infrastructure — aligned with the Viksit Bharat @2047 vision — provides a durable, multi-year demand backdrop for the infrastructure technology sectors in which the Company operates.

(Source: MoSPI; Economic Survey 2025-26)

Key Highlights – FY2025-26

Real GDP Growth 7.6% (Revised from 7.4%)

Nominal GDP Growth 8.6% (Growth to ~USD 3.9 trillion)

Secondary & Tertiary Sector Growth Above 9%

Manufacturing Growth Double-digit

FY27 Real GDP Growth 6.8% - 7.2%

Indias Potential Growth Around 7%

1.2 Global IT Infrastructure Services

The IT infrastructure services market in which the Company operates was estimated at USD 76.85 billion in 2024 and is projected to reach USD 247.11 billion by 2035, implying a CAGR of 11.20% over 2025-2035. Four structural tailwinds underpin this long-term demand:

- Cloud migration at scale · enterprises accelerating hybrid and multi-cloud adoption, with the global cloud market expected to cross USD 1 trillion by 2030.

- AI-infrastructure expansion · rising AI/ML workloads driving demand for compute, storage, networking and high-performance infrastructure, with the AI infrastructure market projected to grow at 25%+ CAGR through 2030.

- Cybersecurity and compliance · growing cyber threats and regulatory mandates, with global cybersecurity spending expected to reach USD 376 billion by 2029.

- Managed services adoption · enterprises outsourcing infrastructure management to improve efficiency and reduce total cost of ownership; global managed services market projected at USD 603 billion by 2030.

Strong enterprise digitization, government initiatives (Digital India, India Stack, DPI) and a large, cost-competitive talent pool position India as a key hub for global IT infrastructure services.

1.3 India Data Centre Industry

India is in the midst of an unprecedented data centre build-out. Industry estimates project the countrys data centre stock across major cities to grow approximately 30% year-on-year in 2026, with new supply of about 500 MW taking installed capacity to roughly 1.7–2.0 GW by the end of calendar 2026, and base-case forecasts of 4–5 GW by 2030 (with AI-accelerated scenarios of 8–9 GW). Growth is being propelled by hyperscale cloud investment, AI workload demand, data localisation mandates under the Digital Personal Data Protection Act, 2023, 5G roll-out and government programmes such as BharatNet and the Smart Cities Mission; a 20-year tax holiday framework for the sector further reinforces the investment case. This expansion drives sustained demand for the Companys core competencies — data centre design, climate control, power distribution, racks and enclosures, edge and mini data centres, and associated maintenance contracts — across both enterprise and government customers.

1.4 Cybersecurity

The India cybersecurity market was estimated at approximately USD 12 billion in 2025 and is projected to grow at a CAGR of about 11.2% to nearly USD 35 billion by 2035. The threat environment continues to intensify — industry studies indicate that a large majority of Indian organisations experienced cyberattacks in recent years, and DSCI reporting recorded over 400 million threat detections in a single year — while regulatory mandates under the DPDPA, data localisation norms, CERT-In directions and sector-specific frameworks (RBI, SEBI, IRDAI) are institutionalising security spend. As an ISO/IEC 27001-certified provider of endpoint security, firewall and antivirus solutions, the Company is well placed to benefit from this structural growth in security budgets across enterprise and government clients.

1.5 Smart Cities, Surveillance and AI Video Analytics

Indias video surveillance systems market was estimated at approximately USD 7.5 billion in 2025 and is projected to reach about USD 19.5 billion by 2034, a CAGR of roughly 11.3%, driven by the Smart Cities Mission, Safe City projects, law-enforcement modernization and the migration from analogue CCTV to IP-based, AI-enabled systems. Within this, AI-powered video analytics is the fastest-growing segment, with India-focused estimates indicating high-teens CAGR as facial recognition, ANPR, crowd analytics and behavioural detection move from pilots to city-scale deployments. The Companys smart poles, smart parking, smart lighting, access control and waste management offerings — now augmented by the Graymatics partnership in AI-based video analytics — map directly onto this opportunity.

Key Growth Drivers:

Smart Cities Mission

Safe City Projects

Law Enforcement Modernization

Migration from Analogue CCTV to IP-based, AI-enabled systems

Key Offerings:

Smart Poles, Smart Parking, Smart Lighting, Access Control, Waste Management

Augmented by Graymatics partnership in AI-based Video Analytics

Video Analytics:

Among the fastest-growing segments in the sector with high-teens CAGR

1.6 Urban Transit and Metro Rail

India operates one of the worlds largest and fastest-expanding metro rail networks, with the network expected to approach ~1,700 km across cities — positioning India among the largest metro systems globally. The Delhi Metro network alone spans approximately 394 km and 289 stations, and the Phase-IV programme is adding about 86 km of new lines across five corridors, with priority corridors (Janakpuri West-RK Ashram, Majlis Park-Maujpur, Aerocity–Tughlakabad) progressively opening through 2026 and the Rs 6,230 crore Rithala–Narela–Kundli corridor under construction. Every new corridor requires telephony, IP-PBX, passenger announcement, surveillance and communication infrastructure — precisely the scope the Company is executing on its Delhi Metro Phase-IV contract — and the national metro pipeline (Mumbai, Chennai Phase-II, Bengaluru, NRCTC and multiple Tier-2 cities) represents a deep, multi-year addressable opportunity.

DELHI METRO

394 km Network Length

289 Stations

PHASE-IV PROGRAMME

Adding ~86 km of new lines across 5 Corridors

Priority Corridors Opening Through 2026:

Janakpuri West - RK Ashram

Majlis Park - Maujpur

Aerocity - Tughlakabad

Rs 6,230 Crore Rithala - Narela - Kundli Corridor Under Construction

NATIONAL METRO PIPELINE - DEEP, MULTI-YEAR OPPORTUNITY

Mumbai Metro (Ongoing)

Chennai Metro Phase-II

Bengaluru Metro Phase-3 & Beyond

NRCTC (Various)

Tier-2 Cities (Multiple Projects)

1.7 Defence Indigenisation

The Union Budget 2026–27 allocated a record Rs 7.85 lakh crore to the Ministry of Defence — an increase of 15.2% over FY26 budget estimates and about 2% of GDP — including Rs 2.19 lakh crore of capital expenditure (up 24%). Critically for domestic players, Rs 1.39 lakh crore, or approximately 75% of the capital acquisition budget, has been earmarked for procurement from domestic defence industries, including private sector companies and MSMEs — a share that has risen steadily from 40% in FY21. Sustainment, maintenance, repair and overhaul (MRO), refurbishment and indigenization of legacy platforms are explicit policy priorities under Aatmanirbhar Bharat, supported by positive indigenisation lists restricting imports. This policy architecture directly underpins the Companys Auto-Tech Solutions for Defence vertical — repair and refurbishment of light commercial and combat vehicles, control panel modernization and reverse engineering of hard-to-source parts — as evidenced by the Trisatya ZIL lorry refurbishment order secured during the year.

(Source: PIB, Ministry of Defence, Union Budget 2026-27)

POLICY PRIORITIES DRIVING INDIGENISATION

Positive Indigenisation Lists restricting imports

Aatmanirbhar Bharat & Make in India

Sustainment, Maintenance, Repair & Overhaul (MRO) of legacy platforms

Refurbishment and Life-extension of legacy platforms

Indigenization of hard-to-source parts

AUTO-TECH SOLUTIONS FOR DEFENCE

Repair & Refurbishment of Light Commercial and Combat Vehicles

Control Panel Modernization

Reverse Engineering of hard-to-source parts

EVIDENCE OF EXECUTION

Trisatya ZIL lorry refurbishment order secured during the year

DIRECTLY ALIGNED WITH INDIAS DEFENCE INDIGENISATION VISION & POLICY ARCHITECTURE

1.8 Digital Learning and Compliance Training

Indias learning management system (LMS) market was estimated at approximately USD 877 million in 2025 and is projected to grow at a CAGR of about 15.4% to over USD 3.3 billion by 2034, within a broader India e-learning market that industry estimates place on an 18%+ growth trajectory through the decade. Demand is anchored in regulated, institution-driven segments — recurring compliance and certification training in BFSI and healthcare, government capacity-building programmes, and digital transformation of higher education under NEP 2020 — with LMS repeatedly identified as the fastest-growing delivery mode. This is precisely the market architecture the Companys SaaS-based LMS portfolio (Medillect, LuminEd, Finillect and Unillect) is designed to address.

1.9 Government Digital and Infrastructure Programmes

A dense fabric of government programmes is shaping demand across the Companys verticals. The Government of India is actively deploying hybrid and multi-cloud architectures through the National Informatics Centre to modernize public-sector IT while ensuring data sovereignty; the Rs 10,372 crore IndiaAI Mission is building one of the worlds largest AI compute infrastructures and fostering indigenous AI capabilities across defence, transport and governance; and the national cybersecurity architecture is being strengthened through the National Cyber Security Coordinator framework, CERT-Ins threat intelligence platform and the Indian Cybercrime Coordination Centre (I4C), alongside nationwide cyber audits and Zero Trust adoption. In parallel, the Government is deploying physical Security Operations Centres (SOC) and Network Operations Centres (NOC) across ministries, smart cities and critical infrastructure — a segment where the Companys integrated hardware-plus-security delivery model is directly relevant.

On the physical infrastructure side, mega programmes across transport — Dedicated Freight Corridors, the Bullet Train project, the station redevelopment programme, railway electrification, metro rail expansion, Regional Rapid Transit Systems, Bharatmala Pariyojana expressways, Sagarmala and UDAN — and across power and energy (generation capacity expansion, transmission and grid modernization, renewable energy missions) each embed substantial technology, communication and surveillance content, expanding the Companys addressable opportunity beyond its traditional strongholds.

(Source: PIB and public programme documents)

2. Company Overview

Marushika Technology Limited ("MTL" or "the Company") is an emerging provider of excellence-driven solutions in Information Technology infrastructure, specializing in data centres and cybersecurity solutions. The Company provides IT products and services spanning data centre infrastructure, networking, telecom systems, surveillance, data protection, cybersecurity and power management, together with installation, maintenance and IT infrastructure advisory services and smart access-control solutions. The Company has also expanded into defence auto-tech solutions — maintenance, refurbishment and reverse engineering of tracked and wheeled military vehicles.

MTL operates through three business verticals: (1) IT & Telecom Infrastructure — data centre infrastructure, IPBX and server solutions, and cybersecurity services; (2) Smart City & Automation Solutions — smart poles, smart parking, smart lighting, access control and waste management systems; and (3) Auto-Tech Solutions for Defence — repairs and refurbishments, control panel management and reverse engineering for lifecycle extension of critical defence assets.

The Company serves clients through B2B and B2G models, with a government franchise that includes Bharat Electronics Limited, Delhi Metro Rail Corporation, Railtel, the Indian Air Force, Indian Railways, NDMC and other marquee entities, supported by OEM partnerships with Rittal, Matrix, Delta, Hexagon, Barco, Commend, LG and others. With 15+ years of operations, presence across 17 states, 20+ products and services and 150+ successfully completed projects, MTL listed on the NSE Emerge platform on February 19, 2026, following an IPO of approximately Rs 26.97 crore. All 150+ projects completed to date — whether direct with the government, through PSUs or through large system integrators — have been successfully implemented, delivered and handed over, and the Company has to date not incurred any penalty for non-execution or delay; a dedicated project team monitors execution timelines on every mandate.

Vertical Revenue Share (FY26)

IT & Telecom Infrastructure: 62.00%

Smart City & Automation Solutions: 25.00%

Auto-Tech Solutions for Defence: 13.00%

3. Key Business Developments in FY26

- IPO and listing · Rs 26.97 crore IPO (February 12·16, 2026); listed on NSE Emerge on February 19, 2026, marking the transition to a public market company.

- Delhi Metro Phase-IV · ongoing execution of the DMRC IP-PBX (DS-12) communication infrastructure project as System Integrator for Bharat Electronics Limited, with a contract value of approximately Rs 31.19 crore; approximately 58% completed as of March 31, 2026. The scope covers supply, installation and commissioning of IP-PBX and communication systems, and the mandate builds referenceable credibility to replicate transit communication projects across the national metro pipeline.

- Trisatya order win · order of Rs 354.64 lakhs from Trisatya Equipments India Private Limited for refurbishment of ZIL lorries, with execution timeline up to March 2027; a major validation of the niche engineering capabilities of the defence auto-tech vertical established approximately eighteen months ago.

- Graymatics strategic partnership · appointment as non-exclusive distributor and reseller of Graymatics India Private Limited, marking entry into AI-based video analytics and smart surveillance and expanding the smart city and enterprise solutions portfolio.

- Infrastructure EPC/turnkey participation · IT and telecom infrastructure delivery for projects associated with key national programmes including Namami Gange, NHAIs Bharatmala Pariyojana and PMGSY-IV under the PM Gati Shakti framework, broadening the Companys footprint in government infrastructure technology.

- Order pipeline · Rs 8,066.96 lakhs of SI projects and Rs 2,789.23 lakhs of VAD projects under execution at year-end, providing strong revenue visibility.

KEY BUSINESS DEVELOPMENTS IN FY26

01 IPO and listing Rs 26.97 crore IPO (February 12-16, 2026); listed on NSE Emerge on February 19, 2026

02 Delhi Metro Phase-IV Ongoing execution of the DMRC IP-PBX (DS-12) communication infrastructure project as System Integrator for Bharat Electronics Limited, contract value of Rs 31.19 crore; ~58% completed as of March 31, 2026

03 Trisatya order win Order of Rs 354.64 lakhs from Trisatya Equipments India Private Limited for refurbishment of ZIL lorries; execution timeline up to March 2027

04 Graymatics strategic partnership Appointment as non-exclusive distributor and reseller of Graymatics India Private Limited; entry into AI-based video analytics and smart surveillance

05 Infrastructure EPC/turnkey participation IT and telecom infrastructure delivery for projects associated with key national programmes including Namami Gange, NHAIs Bharatmala Pariyojana and PMGSY-IV under the PM Gati Shakti framework

06 Order pipeline Rs 8,066.96 lakhs of SI projects and Rs 2,789.23 lakhs of VAD projects under execution at year-end

4. Opportunities and Threats

Opportunities.

The Companys growth strategy rests on five pillars: strategic use of reputed third-party service providers for scalable delivery; leveraging technology — including cloud-first, hybrid/multi-cloud, serverless and containerization approaches — across verticals; expanding and strengthening OEM relationships; diversification of the product and services portfolio; and increasing presence and network across India. Each vertical is aligned to a large, policy-supported addressable market:

- IT & Telecom Infrastructure · Indias ~30% projected data centre capacity addition in 2026 and multi-gigawatt build-out through 2030, together with an ~USD 12 billion domestic cybersecurity market growing at double digits, sustain demand for the Companys data centre, IPBX/server and security offerings across enterprise and government clients.

- Smart City & Automation Solutions · the ~USD 7.5 billion India video surveillance market growing to ~USD 19.5 billion by 2034, Safe City programmes and city-scale AI analytics deployments expand the opportunity for smart poles, parking, lighting, access control and waste management; the Graymatics partnership positions the Company in the fastest-growing AI-analytics layer of this stack.

- Urban transit · Delhi Metro Phase-IVs ~86 km of new corridors and the national metro pipeline across Mumbai, Chennai, Bengaluru and Tier-2 cities create recurring demand for communication, telephony, PAS and surveillance systems where the Company has referenceable execution with DMRC, Noida Metro and NRCTC.

- Defence Auto-Tech · with Rs 1.39 lakh crore (75% of the FY27 capital acquisition budget) ring-fenced for domestic industry and MRO/lifecycle-extension an explicit policy priority, the Companys refurbishment, control panel management and reverse engineering capabilities address a high-margin, niche and structurally growing revenue stream.

- Digital learning · the Companys SaaS-based LMS portfolio · Medillect (healthcare and medical education), LuminEd (government and public sector), Finillect (banking and financial services) and Unillect (higher education) · addresses an estimated total market opportunity of Rs 9,257 crore, riding an India LMS market projected to grow at ~15% CAGR through 2034 on compliance training and NEP-led digitization.

Threats.

The Company operates in a competitive and evolving environment and remains watchful of external threats, including:

- Intensifying competition from larger, better-capitalised system integrators and OEM-direct channels in government tenders, which can compress pricing and margins.

- Rapid technology change · shifts in networking, surveillance, AI and cloud architectures could render existing product lines or skills less relevant without continuous portfolio refresh.

- Dependence on government procurement cycles · changes in budget priorities, tender timelines, procurement policy (including GeM/L1 dynamics) or model code-of-conduct periods can defer order inflows and execution.

- Supply chain and geopolitical disruptions · dependence on imported components and OEM supply chains exposes project timelines and costs to global disruptions, tariff changes and currency movements.

- Cybersecurity and execution liabilities · as a provider of mission-critical and security infrastructure, any security incident or execution failure on a marquee project could carry reputational and financial consequences disproportionate to contract size.

5. Competitive Strengths and Differentiation

- Full-lifecycle execution over pure asset trading · rather than a high-volume, low-margin product distribution model, the Company focuses on end-to-end execution: preliminary advisory, site and system design, installation, testing and commissioning, and specialized lifecycle maintenance. Embedding into client operations post-installation drives sticky, multi-year servicing revenue and high client retention — visible in the near-trebling of service revenue in FY26.

- Deep OEM ecosystem relationships · entrenched partnerships with leading OEMs provide advance access to product pipelines, tier-one technical support and competitive pricing architectures, enabling the Company to bid competitively against non-authorized system integrators while preserving quality control.

- Proven execution track record · 150+ projects delivered across India through government, PSU and large SI channels without any penalty for non-execution or delay, supported by dedicated project-monitoring teams; this record underpins repeat orders from BEL, DMRC, Railtel, the Indian Air Force and other marquee clients.

- Capital efficiency and financial resilience · ROE of 52.77% and ROCE of 26.88% in FY26 reflect superior capital productivity, further strengthened by the post-IPO de-leveraging of the balance sheet.

- Diversified, policy-aligned portfolio · presence across IT & telecom infrastructure, smart city solutions and defence auto-tech reduces dependence on any single vertical and aligns the Company with durable, budget-backed government programmes.

What Sets Us Apart

01 Full-lifecycle Execution over Pure Asset Trading End-to-end execution drives sticky, multi-year servicing revenue and high client retention

02 Deep OEM Ecosystem Relationships Strong OEM partnerships ensure advance access to product pipelines, tier-one technical support and competitive pricing

03 Proven Execution Track Record 150+ projects delivered across India through government, PSU and large SI channels without any penalty for non-execution or delay

04 Capital Efficiency & Financial Resilience ROE of 52.77% and ROCE of 26.88% in FY26

05 Diversified, Policy-Aligned Portfolio Presence across key verticals reduces dependence on any single vertical and aligns with budget-backed government programmes

6. Segment-wise / Product-wise Performance

IT & Telecom Solutions contributed 99.27% of FY26 revenue (FY25: 97.59%), with Smart Solutions at 0.11% and Auto-Tech Solutions for Defence at 0.63% — the defence vertical registering its first meaningful revenue contribution as the segment ramps up. Within the IT & Telecom vertical, performance was led by data centre infrastructure (including physical SOC/NOC deployments for government and critical infrastructure clients), IPBX and server solutions — anchored by the Delhi Metro Phase-IV DS-12 project — and cybersecurity services, together with EPC/turnkey infrastructure delivery associated with national programmes such as Namami Gange, Bharatmala Pariyojana and PMGSY-IV. Product-mix-wise, the year was marked by a decisive shift toward services: service revenue rose from Rs 1,744 lakhs in FY25 to Rs 4,961 lakhs in FY26, while value-added distribution of OEM products continued to provide scale and client access.

By customer category, non-government entities contributed 93.46% of revenue in FY26 versus 78.90% in FY25, reflecting a higher share of execution through system-integrator and OEM channels during the year, even as end-use of the Companys solutions remains anchored in government and PSU infrastructure programmes.

REVENUE BY CUSTOMER CATEGORY

FY25:

Non-Government Entities: 78.90%

Government / PSU Entities: 21.10%

FY26:

Non-Government Entities: 93.46%

Government / PSU Entities: 6.54%

7. Outlook

With an order pipeline of Rs 8,066.96 lakhs of SI projects and Rs 2,789.23 lakhs of VAD projects under execution, a de-levered post-IPO balance sheet and expanding OEM partnerships, the Company enters FY2026-27 with strong revenue visibility and the financial flexibility to pursue larger mandates. The order book is heavily anchored in PSUs and transit-related government bodies, whose multi-year, budget-backed programmes are relatively insulated from commercial market volatility, lending high quality and visibility to the revenue pipeline.

Management outlook for FY27 and beyond. Managements outlook is expansionary, anchored in three priorities: (i) scaling the defence auto-tech business — following successful completion of initial refurbishment and reverse-engineering assignments, the Company has a pipeline of prospective mandates and expects this vertical to contribute a progressively higher share of revenue at superior margins relative to traditional IT distribution; (ii) capitalising on Indias digital infrastructure build-out by aligning the IT and telecom infrastructure divisions with Smart Cities, Digital India and data centre development programmes; and (iii) disciplined conversion of the order book into billed revenue with the working capital flexibility afforded by IPO proceeds. Over the medium term, management has identified Digital Transformation and enterprise SaaS, AI and advanced data analytics, cybersecurity and cloud governance, and smart mobility and IoT ecosystems as the verticals expected to drive future growth, with a strategic emphasis on growing high-yield managed services and recurring revenue. Management aspires to sustain a strong (35%+) growth trajectory over the coming three to five years as the Company transitions into a diversified, pan-India technology execution partner, subject to market conditions and execution.

8. Risks and Concerns

- Client and project concentration · a significant portion of revenue is derived from a limited number of large projects and government/PSU-linked programmes; delays in tendering, execution or milestone certification can affect revenue recognition.

- Working capital intensity · project-based revenue involves inventory build-up and extended execution cycles; sustained growth requires disciplined working capital management and adequate financing lines.

- Competition and pricing · the system integration market is competitive; the Company mitigates this through OEM partnerships, execution track record and value-added capabilities.

- Technology obsolescence · rapid evolution in networking, surveillance and AI technologies requires continuous upskilling and portfolio refresh.

- Regulatory and policy risk · changes in government procurement policy, defence procurement procedures or tax/regulatory frameworks may impact business prospects.

- New venture execution risk · the LMS portfolio and defence auto-tech vertical are at an early stage; scaling them involves market development and execution risk.

9. Internal Control Systems and Their Adequacy

The Company has internal control systems commensurate with its size and the nature of its operations, designed to provide reasonable assurance on the recording and reporting of financial information, compliance with applicable laws and regulations, and safeguarding of assets. The systems are reviewed periodically by the management and the Audit Committee, and corrective actions are taken where required. The Company is ISO/IEC 27001 and ISO 9001 certified, underscoring its commitment to information security and quality management.

10. Discussion on Financial Performance with respect to Operational Performance

Consolidated performance for the year ended March 31, 2026 is summarized below:

Particulars (Rs in Lakhs)	H2 FY26	H1 FY26	HoH	FY26	FY25	YoY
Revenue from operations	6,778.8	4,863.9	39.4%	11,642.8	8,524.9	36.6%
Purchase of stock-in-trade	2,665.2	3,008.3		5,673.4	5,440.3
Cost of sub-contract technical service	2,781.5	1,052.2		3,833.7	1,519.4
Employee expenses	158.2	141.8		300.0	248.3
Other expenses	150.0	92.1		242.1	239.9
EBITDA	1,024.0	569.6	79.8%	1,593.6	1,076.9	48.0%
EBITDA margin	15.1%	11.7%	339 bps	13.7%	12.6%	105 bps
Depreciation	48.0	22.3		70.3	38.9
Other income	3.2	7.3		10.5	37.7
EBIT	979.2	554.6	76.5%	1,533.8	1,075.8	42.6%
EBIT margin	14.4%	11.4%	340 bps	13.2%	12.6%	56 bps
Finance cost	138.2	137.0		275.2	230.0
PBT	841.0	417.6	101.4%	1,258.7	845.8	48.8%
Tax	257.1	106.5		363.6	217.8
PAT	583.9	311.2	87.6%	895.1	627.9	42.5%
PAT margin	8.6%	6.4%	222 bps	7.7%	7.4%	32 bps

Revenue from operations grew 36.6% to Rs 11,642.8 lakhs in FY26, driven by execution on the Delhi Metro Phase-IV communication systems project, growth in system-integration mandates and a rising contribution from sub-contract technical services, which scaled from Rs 1,519.4 lakhs in FY25 to Rs 3,833.7 lakhs in FY26 in line with the project-heavy revenue mix. This continues a steep multi-year trajectory — revenue has grown from Rs 36.99 crore in FY23 to Rs 54.44 crore in FY24, Rs 85.25 crore in FY25 and Rs 116.43 crore in FY26, a three-year CAGR in excess of 46% — with the average contract size evolving from small-scale equipment supply toward multi-crore systemic integrations. A key structural driver of profitability was the shift in revenue mix toward services: service revenue rose from Rs 1,744 lakhs in FY25 to Rs 4,961 lakhs in FY26, contributing to higher realisations and improved margins. EBITDA rose 48.0% to Rs 1,593.6 lakhs with margin expansion of 105 bps to 13.7%, reflecting a better project mix, operational efficiencies, higher-value solution deployments and growing service income on a controlled cost base. PAT grew 42.5% to Rs 895.1 lakhs, with PAT margin improving to 7.7% despite higher depreciation on an expanded asset base.

The second half was materially stronger than the first: H2 revenue of Rs 6,778.8 lakhs grew 39.4% over H1, EBITDA nearly doubled half-on-half (up 79.8%) and H2 PAT of Rs 583.9 lakhs was up 87.6% over H1, with H2 margins of 15.1% (EBITDA) and 8.6% (PAT) exiting the year at their highest levels.

KEY TAKEAWAYS – FY26

36.6% Revenue from operations grew to Rs 11,642.8 lakhs

48.0% EBITDA grew to Rs 1,593.6 lakhs; margin expanded to 13.7%

42.5% PAT grew to Rs 895.1 lakhs; margin improved to 7.7%

Sub-contract technical service scaled to Rs 3,833.7 lakhs from Rs 1,519.4 lakhs in FY25

Service revenue rose to Rs 4,961 lakhs from Rs 1,744 lakhs in FY25, driving higher realisations and margins

MULTI-YEAR REVENUE TRAJECTORY (Rs in Crore)

FY23: 36.99

FY24: 54.44

FY25: 85.25

FY26: 116.43

3-Year CAGR > 46%

Revenue has grown from Rs 36.99 crore in FY23 to Rs 116.43 crore in FY26, a three-year CAGR in excess of 46%, driven by a shift from small-scale equipment supply to multi-crore systemic integrations.

STRONGER PERFORMANCE IN H2 FY26

Revenue Rs 6,778.8 lakhs ? 39.4% vs H1 FY26

EBITDA Rs 1,024.0 lakhs ? 79.8% vs H1 FY26

PAT Rs 583.9 lakhs ? 87.6% vs H1 FY26

EBITDA Margin (H2 FY26) 15.1% (Highest in the year)

PAT Margin (H2 FY26) 8.6% (Highest in the year)

11. Material Developments in Human Resources / Industrial Relations

The Company regards its people as its most important asset. The leadership team brings 70+ years of combined experience across strategy and business development, infrastructure and project execution, and finance and compliance. As on March 31, 2026, the Company employed [•] permanent employees (on-roll), supplemented by project-based and third-party technical personnel deployed on client sites. Employee expenses for the year were Rs 300.0 lakhs (FY25: Rs 248.3 lakhs), reflecting selective additions to project execution, service delivery and business development teams in line with the growing order book.

During the year, the Company continued to invest in technical training and certifications (including OEM-led programmes), safety practices at project sites, and retention of skilled engineering talent, with dedicated project teams instituted to monitor execution timelines on every mandate. No material adverse developments took place on the human resources or industrial relations front during the year, and industrial relations remained cordial throughout.

12. Balance Sheet and Return Ratios

Key Balance Sheet Items (Rs in Lakhs)	FY26	FY25
Net worth (Equity)	4,728.9	1,536.8
Non-current borrowings	251.0	255.1
Current borrowings	437.3	1,882.2
Trade payables	2,556.0	1,292.4
Inventories	5,798.3	4,020.6
Trade receivables	265.1	156.7
Total balance sheet size	8,707.3	5,392.9

The balance sheet strengthened significantly during the year. Net worth increased from Rs 1,536.8 lakhs to Rs 4,728.9 lakhs, aided by IPO proceeds and retained earnings. Short-term borrowings reduced from Rs 1,882.2 lakhs to Rs 437.3 lakhs, materially de-leveraging the Company. Inventories of Rs 5,798.3 lakhs and loans and advances of Rs 1,484.3 lakhs reflect the working-capital-intensive nature of ongoing project execution; the Company remains focused on working capital discipline as project milestones convert to billing and collections. Intangible assets of Rs 413.1 lakhs and capital work in progress of Rs 329.1 lakhs reflect continued investment in capability building, including the Companys LMS product portfolio. The Company delivered ROE of 52.77% and ROCE of 26.88% for the year.

KEY BALANCE SHEET ITEMS (Rs in Lakhs)

FY26 vs FY25

Net Worth (Equity): 4,728.9 vs 1,536.8

Current Borrowings: 437.3 vs 1,882.2

Trade Payables: 2,556.0 vs 1,292.4

Inventories: 5,798.3 vs 4,020.6

Trade Receivables: 265.1 vs 156.7

Total Balance Sheet Size: 8,707.3 vs 5,392.9

KEY HIGHLIGHTS

Net worth increased significantly to Rs 4,728.9 lakhs (FY25: Rs 1,536.8 lakhs)

Current borrowings reduced to Rs 437.3 lakhs (FY25: Rs 1,882.2 lakhs)

Inventories of Rs 5,798.3 lakhs reflect ongoing project execution

Loans and advances of Rs 1,484.3 lakhs support working capital requirements

Investments in intangible assets (Rs 413.1 lakhs) and CWIP (Rs 329.1 lakhs) continue capability building

RETURN RATIOS (FY26)

ROE (FY26): 52.77%

ROCE (FY26): 26.88%

13. Disclosure of Accounting Treatment

The Company has not adopted any treatment different from that prescribed in an Accounting Standards.

14. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, on account of known and unknown risks and uncertainties including fluctuations in earnings, growth management, competition, international operations, changes in government regulations, tax regimes and economic developments. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

Industry and market data used in this report have been obtained from publicly available sources, including government publications (MoSPI, PIB, Ministry of Defence, Economic Survey) and third-party industry research. While the Company believes these sources to be reliable, it has not independently verified such data, and estimates from different sources may vary based on methodology.