This Management Discussion and Analysis Report contains forward-looking statements that reflect the Companys current expectations regarding future events, business prospects, financial performance, and operating results. These statements are based on assumptions, estimates and expectations of future events that may differ materially from actual results due to various risks and uncertainties including changes in economic conditions, market demand, technology disruptions, regulatory developments, competitive pressures, geopolitical developments, foreign exchange fluctuations and other factors beyond the Companys control. The Company undertakes no obligation to update or revise any forward-looking statements based on subsequent events or developments. The financial statements have been prepared in accordance with the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 and other applicable statutory requirements. This discussion should be read in conjunction with the audited consolidated financial statements and notes forming part of this Annual Report. In this Management Discussion and Analysis, references to the Company are to MethodHub Software Limited and references to the Group are to the Company together with its subsidiaries, step-down subsidiaries and the partnership entity controlled by it. Unless the context otherwise requires, the discussion and all figures are presented on a consolidated basis.
MethodHub Software Limited is a technology services organisation engaged in Information Technology Services and Telecom & Tech Infrastructure Projects. The Group provides AI-driven solutions, Technology Consulting, Software Development, Staffing Services, Enterprise Solutions, and Telecom & Tech Infrastructure Projects to clients across multiple geographies. During FY 2025-26, the Company significantly expanded its global footprint through strategic acquisitions and currently operates through subsidiaries in the United States, Canada, and Thailand, together with a controlled partnership entity in India. The Groups diversified operating structure enables it to address evolving customer needs while leveraging global delivery capabilities and domain expertise. The successful completion of the Initial Public Offering (IPO) and listing on the SME Platform of BSE Limited on December 12, 2025, marked a significant milestone in the Companys growth journey.
FY 2025-26 was a landmark year characterised by strong organic growth, strategic acquisitions, international expansion, and successful capital market participation. The Group achieved consolidated revenue from operations of ?33,28,829 thousand as compared to ?13,51,199 thousand in FY 2024-25, representing a growth of 146.36%. Net Profit after tax stood at ?3,18,443 thousand compared to ?1,15,012 thousand during FY 2024-25. The Group expanded its presence through acquisitions resulting in seven operating subsidiaries/step-down subsidiaries, including the ones that were already in existence in the previous year, across India, the United States, Canada and Thailand and one controlled partnership entity, thereby strengthening its international service delivery capabilities and customer reach.
A major milestone during the year was the successful completion of the Companys Initial Public Offering (IPO), comprising a fresh issue of 45,10,200 Equity Shares of face value ?10 each, aggregating to ?874.98 million, and an Offer for Sale of 7,72,800 Equity Shares, aggregating to ?149.92 million. Accordingly, the IPO comprised an aggregate of 52,83,000 Equity Shares, aggregating to ?1,024.90 million. The Companys Equity Shares were listed on the SME Platform of BSE Limited on 12 December 2025. The IPO strengthened the Companys capital base and enhanced its visibility among customers, investors, and business partners.
The Group underwent significant transformation through acquisition of four additional subsidiaries/step-down subsidiaries during the FY 2025-26. These acquisitions expanded MethodHubs international footprint and enhanced its service capabilities across key North American and international markets.
The Group continued to invest in software development, digital capabilities, delivery infrastructure and customer acquisition initiatives. Software under development of ?3,19,386 thousand reflects the Groups continued commitment towards technology-led growth and service innovation.
Providing AI transformation solutions, application development, consulting services, managed services and enterprise technology solutions.
Supporting clients with specialised technology talent and workforce solutions across different industries and geographies.
Providing telecom infrastructure support and services to address growing connectivity and network deployment requirements.
Leveraging our global network of subsidiaries across multiple countries to provide scalable, cost-efficient and customer-centric solutions.
Expanding capabilities, customer acquisition and market reach through carefully selected inorganic growth opportunities.
Strengthened balance sheet following the IPO, with enhanced financial flexibility and improved access to capital to support future growth.
The global technology services industry continues to be driven by rapid AI transformation, Cloud Adoption, Cybersecurity Investments, Data Analytics, Artificial Intelligence, Automation, Enterprise Modernisation, and Infrastructure Modernisation initiatives. Organisations worldwide are increasingly investing in digital solutions to improve operational efficiency, customer experience, and business agility. Demand for technology staffing and managed services also remains resilient as enterprises seek specialised digital talent and flexible delivery models. Telecom infrastructure investments continue to gain momentum, supported by network modernisation initiatives, expansion of digital connectivity, cloud infrastructure deployment, and next-generation communication technologies.
The increasing adoption of Artificial Intelligence, cloud technologies, AI transformation, enterprise modernisation and technology-led business models presents significant opportunities for the Group. The Groups expanded international presence and diversified service portfolio also provide opportunities for cross-selling, geographic expansion and deeper client engagement. At the same time, the Group operates in a competitive and rapidly evolving technology environment. Key challenges include changes in technology and customer requirements, competition for skilled talent, global economic uncertainty, foreign exchange fluctuations, customer concentration, cybersecurity risks, and the integration of acquired businesses. MethodHubs diversified portfolio of technology consulting, AI transformation services, staffing solutions, telecom infrastructure services, and global delivery capabilities position the Group favourably to capitalise on these industry opportunities.
The Group operates primarily across Information Technology Services and Telecom & Technology Infrastructure Projects.
| Segment | FY 2025-26 Revenue (\u20b9 thousand) | FY 2024-25 Revenue (\u20b9 thousand) |
| Information Technology Services | 31,15,094 | 10,71,196 |
| Telecom & Tech Infrastructure Projects | 1,84,622 | 2,77,396 |
| Other Operating Income | 29,113 | 2,607 |
| Total Revenue from Operations | 33,28,829 | 13,51,199 |
Information Technology Services continued to be the Groups principal revenue contributor accounting for 93.58% of operational revenue. Growth was driven by AI transformation engagements, cloud migration services, enterprise application modernisation, technology staffing, managed services, cybersecurity and AI-driven business solutions. The Group expanded its service delivery capabilities through strategic acquisitions and strengthened its global customer base during the year.
The Telecom & Tech Infrastructure Projects segment recorded revenue of ?1,84,622 thousand during FY 2025-26 compared with ?2,77,396 thousand in FY 2024-25, representing a decline of 33.4%. The decline was primarily attributable to lower project execution and revenue recognition during the year. The segment continued to support telecommunications operators and infrastructure customers through network modernisation, deployment support and technology infrastructure management projects. With the significant expansion of the Groups Information Technology Services business following the acquisitions completed during the year, the relative contribution of the Telecom & Tech Infrastructure Projects segment to consolidated revenue also moderated.
The Group maintains a diversified international customer base, with a significant proportion of its revenue being generated from overseas markets. During FY 2025-26, revenue from operations amounted to ?33,28,829 thousand, driven primarily by the United States, Canada, Thailand and India. The Groups expanded global presence, supported by strategic acquisitions and strengthened delivery capabilities across multiple jurisdictions, has enabled it to serve customers across a broader geographic footprint. The United States remained the Groups largest market, contributing ?20,91,991 thousand, representing approximately 62.84% of total revenue from operations. Canada contributed ?6,05,232 thousand (18.18%), Thailand contributed ?2,70,241 thousand (8.12%), and India contributed ?3,61,365 thousand (10.86%) during FY 2025-26. Compared with FY 2024-25, the Group witnessed substantial growth across its international operations, particularly in the United States and Thailand, reflecting the impact of strategic acquisitions, deeper customer engagement, and expansion of technology service offerings. The contribution from overseas markets increased significantly during the year, demonstrating the success of the Groups international growth strategy and its ability to leverage global delivery capabilities to serve customers in key technology markets. The geographical diversification of revenue reduces dependence on any single market and provides the Group with opportunities to benefit from technology spending trends across multiple economies. The Group remains focused on strengthening its presence in North America and other international markets while continuing to expand its customer relationships and service offerings globally.
(Amount in Thousand)
| Geography | FY 2025-26 | % | FY 2024-25 | % |
| India | 3,61,365 | 10.86% | 3,46,091 | 25.61% |
| USA | 20,91,991 | 62.84% | 4,64,616 | 34.39% |
| Canada | 6,05,232 | 18.18% | 5,40,492 | 40.00% |
| Thailand | 2,70,241 | 8.12% | 0 | 0.00% |
| Total Revenue from Operations | 33,28,829 | 13,51,199 |
The outlook for the Group remains positive, supported by robust demand for AI transformation services, cloud technologies, enterprise modernisation initiatives, technology staffing solutions, and telecom infrastructure services. The successful IPO, strengthened balance sheet, increased global presence and strategic acquisitions completed during FY 2025-26 have enhanced the Groups platform for its next phase of development. Going forward, the Group will focus on:
? Deepening and expanding relationships with customers across key markets.
? Strengthening capabilities in AI transformation offerings.
? Leveraging cross-selling opportunities across subsidiaries and service offerings.
? Evaluating strategic acquisition opportunities that complement existing capabilities and market presence.
? Improving operational efficiencies and optimising resource utilisation.
? Expanding the portfolio of higher-value technology and digital services.
? Creating sustainable long-term value for shareholders.
With an established international presence, strengthened financial position and an expanding portfolio of technology services, MethodHub Software Limited is well positioned to capitalise on growth opportunities across international technology services markets.
The Group operates in a dynamic and competitive environment and continuously evaluates emerging risks.
Key Business Risks:
? Global economic slowdown impacting technology spending.
? Talent acquisition and retention challenges.
? Foreign exchange fluctuations.
? Customer concentration risks.
? Working capital and receivable management.
? Changes in technology and client preferences.
? Integration risks related to acquisitions.
? Regulatory and compliance risks across multiple jurisdictions.
? Cybersecurity and data protection risks.
The Company has implemented appropriate governance structures, internal controls and risk mitigation processes to address these challenges.
The Company maintains adequate internal control systems commensurate with the nature, scale and complexity of its operations. The internal control framework is designed to:
? Safeguard assets.
? Ensure reliability of financial reporting.
? Maintain compliance with applicable laws and regulations.
? Monitor operational efficiency.
? Support effective risk management.
The effectiveness of the internal control systems is periodically reviewed by the management, Audit Committee and Board of Directors. Necessary measures are undertaken, wherever required, to further strengthen the control environment in line with the evolving scale and complexity of the Companys operations.
| Particulars | FY 2025-26 | FY 2024-25 |
| Revenue from Operations | \u20b9 33,28,829 thousand | \u20b9 13,51,199 thousand |
Revenue from operations increased by 146.36% to ?33,28,829 thousand primarily driven by organic business growth, increased client engagements and expanded service offerings and the contribution of the subsidiaries acquired during the year.
| Particulars | FY 2025-26 | FY 2024-25 |
| Total Income | \u20b9 33,45,607 thousand | \u20b9 13,62,759 thousand |
Total income grew by 145.50%, reflecting strong underlying business momentum and scalable operational execution.
| Particulars | FY 2025-26 | FY 2024-25 |
| Net Profit After Tax | \u20b9 3,18,443 thousand | \u20b9 1,15,012 thousand |
Net profit after tax increased by approximately 176.88%, reflecting improved operating performance and the benefit of the Groups expanded scale of operations.
| Particulars | FY 2025-26 | FY 2024-25 |
| Basic EPS | \u20b9 21.63 | \u20b9 9.93 |
The robust growth in profitability was reflected in Basic EPS, which increased to ?21.63 from ?9.93 in FY 2024-25.
Shareholders funds increased substantially during the year due to IPO proceeds and an increase in reserves from current-year profits.
| Particulars | FY 2025-26 | FY 2024-25 |
| Share Capital | \u20b9 1,88,534 thousand | \u20b9 69,619 thousand |
| Reserves & Surplus | \u20b9 13,42,378 thousand | \u20b9 3,57,558 thousand |
Total assets increased to ?34,36,716 thousand from ?9,37,461 thousand reflecting acquisitions, investments in software development, working capital growth and expansion initiatives.
Key highlights include:
The Group generated positive operating cash flows of ?57,560 thousand during FY 2025-26 compared to an operating cash outflow of ?69,456 thousand during FY 2024-25. Investing cash outflows primarily related to:
? Strategic acquisitions
? Product development investments
? Creation of long-term assets
Financing inflows were driven by:
? IPO proceeds
? Securities premium
? Borrowings for business expansion
As a result, cash and cash equivalents increased to ?5,96,601 thousand as of March 31, 2026.
The Group recognises human capital as a critical driver of growth and innovation. During FY 2025-26:
? The Group continued to invest in training, leadership development and employee engagement initiatives.
? Various skill enhancement and performance management programmes were conducted to strengthen organisational capabilities.
? With expanded global operations and increasing business opportunities, the Group remains focused on attracting, retaining and developing high-quality talent across its operating regions.
? The Group focused on global workforce integration, strengthening collaboration across geographies, optimising resource allocation, and enhancing operational efficiency to support sustainable growth.
Number of permanent employees of the Group as on March 31, 2026: 296
The Group remains committed to fostering an inclusive, performance-driven and employee-centric work culture. Industrial relations remained cordial throughout the year and there were no disputes.
| Ratio | FY 2025-26 | FY 2024-25 | Change |
| Debtors Turnover Ratio | 4.61 | 4.33 | 6.47% |
| Inventory Turnover Ratio | 270.21 | 298.59 | (9.50%) |
| Interest Coverage Ratio | 3.59 | 3.78 | (5.03%) |
| Current Ratio | 1.33 | 1.90 | (30.00%) |
| Debt Equity Ratio | 0.74 | 0.75 | (1.33%) |
| Operating Profit Margin (%) | 20.06% | 13.63% | 47.18% |
| Net Profit Margin (%) | 9.57% | 8.51% | 12.46% |
Current Ratio The Current Ratio declined from 1.90 times to 1.33 times, representing a decrease of 30.00%. The decline was primarily attributable to higher current liabilities arising from business acquisitions, deferred purchase consideration obligations and working capital financing requirements associated with the Groups expanded operations.
Operating Profit Margin Operating Profit Margin improved significantly from 13.63% to 20.06%, representing an increase of 47.18%. The improvement was driven by increased scale of operations, stronger contribution from overseas businesses, improved utilization of delivery resources, operational efficiencies and enhanced service mix.
| Particulars | FY 2025-26 | FY 2024-25 |
| Return on Net Worth | 32.53% | 42.57% |
Explanation Return on Net Worth declined from 42.57% to 32.53%, representing a relative decrease of 23.58%, primarily due to a significant increase in shareholders equity following the Initial Public Offering, fresh equity issuances, conversion of preference shares into equity and retention of profits. While profitability increased substantially during the year, the growth in average equity base was proportionately higher, resulting in moderation of the return ratio.
(Although the change is below the 25% threshold in clause (i) of Schedule V, Part B, this disclosure and explanation are furnished because clause (j) requires details of any change in Return on Net Worth to be given, irrespective of its magnitude.)
The consolidated financial statements of the Group have been prepared in accordance with the applicable Accounting Standards notified under Section 133 of the Companies Act, 2013 read with the Companies (Accounting Standards) Rules, 2021 and other relevant provisions of the Act. The Group has not adopted any accounting treatment different from those prescribed in the applicable Accounting Standards in the preparation of its financial statements.
For and on behalf of the Board of Directors of MethodHub Software Limited
AHOBILAM NAGASUNDARAM EXECUTIVE DIRECTOR & CEO DIN: 02953101 Date: August 20, 2026 Place: Philadelphia, USA
PRASANNA DHANDAPANI NON-EXECUTIVE DIRECTOR DIN: 02187044 Date: August 20, 2026 Place: Chennai, India
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