Mobavenue AI Tech Ltd Management Discussions

ECONOMIC OVERVIEW GLOBAL ECONOMY

The year 2025 was shaped by heightened trade tensions and policy uncertainty. Tariff measures and retaliatory actions between major economies disrupted global trade flows and supply chains. They also held back business investment and kept expectations around inflation and interest rates in flux. The same year, however, saw a sharp acceleration in global investment in artificial intelligence, with substantial capital directed towards computing infrastructure, foundational models, and enterprise applications. This kept technology spending strong even as wider demand stayed measured. It also began to reshape how businesses reach consumers, placing data, automation, and intelligence at the centre of marketing and advertising decisions. In an uneven global economy, digital advertising and marketing technology stayed among the steadier areas of business spending, valued for their close and measurable link to revenue.

Entering 2026, the outbreak of conflict in the Middle East brought fresh disruption. In its April 2026 World Economic Outlook, the International Monetary Fund projected global growth to slow to 3.1% in 2026 and 3.2% in 2027. Both rates sit below recent outcomes and well under pre-pandemic averages, with headline inflation expected to rise modestly in 2026 before resuming its decline in 2027. The slowdown was sharper across emerging markets and developing economies, where growth was revised to around 3.9%. Risks to the outlook are tilted to the downside. They include a longer or wider conflict, deeper geopolitical fragmentation, renewed trade frictions and any reassessment of expectations around AI-led productivity. This environment carries a clear implication for the advertising and marketing technology industry. When demand is measured and budgets are disciplined, advertisers concentrate their spending on channels that show a clear and measurable return. That speeds up the shift of marketing investment towards digital, data-driven and AI-optimised formats. Such budgets are still closely tied to business confidence and consumption. But the direction of travel, towards performance, measurability and intelligence, works in favour of technology-led players even where headline growth is subdued.

INDIAN ECONOMY

India held its position as the fastest-growing major economy during the year. As per the provisional estimates of the Ministry of Statistics and Programme Implementation, real GDP grew by an estimated 7.7% in FY 25-26, with nominal GDP at RS. 346.36 Lakh Crores. Resilient domestic demand, private consumption and government capital expenditure supported this growth. A reduction in additional US tariffs on Indian goods improved the external trade outlook, and the International Monetary Fund projects India to grow at 6.5% in FY 26-27, keeping its lead among the major economies. This combination of scale, stability and a young, consumption-led population creates a favourable multi-year setting for consumer-facing businesses and the platforms that help them grow. Most significant for the companys operating environment is the pace at which economic activity is moving onto digital channels. Indias digital economy was estimated at 11.74% of national income in 2022-23. As per the Ministry of Electronics and Information Technology, it has since been expanding at roughly twice the pace of the wider economy, placing it on a path towards approximately one-fifth of GDP by 2030. Wider internet and smartphone access, the spread of digital payments, and the rapid rise of digital commerce, quick commerce, fintech and direct-to-consumer brands are enlarging both the number of consumers reachable online and the base of enterprises competing for their attention. Each of these advertiser categories depends on acquiring, engaging and retaining customers efficiently at scale, precisely the capability that AIled advertising and marketing platforms provide. Indias deep pool of engineering and data-science talent further positions the country as a base from which such platforms can be built for domestic and global markets alike, widening the runway for technology-led marketing and consumer-growth solutions.

INDUSTRY OVERVIEW AND DEVELOPMENTS

Mobavenue operates in the advertising technology (adtech) and marketing technology (MarTech) industry, the layer of platforms, data infrastructure and intelligence that enables brands to plan, execute, measure and optimise digital advertising and consumer engagement. The Company serves clients in India and across international markets, and its prospects are shaped by both the global and the Indian advertising economies. Globally, advertising has remained one of the more resilient areas of enterprise investment. On Dentsus estimates, worldwide advertising spend passed US$1 Trillion in 2025 and is forecast to reach around US$1.06 Trillion in 2026, a growth of 5.0%, ahead of the 3.1% expansion of the global economy projected by the IMF. Digital channels account for close to

69% of spend across the 56 markets Dentsu tracks, and this concentration is intensifying: on WARCs analysis, around nine in every ten additional advertising dollars now flow to online-only platforms. Within digital, the fastest-growing channels are the technology-led, measurable formats at the core of the Companys offering: retail media, connected TV, online video and social. Retail media is forecast to grow 12.3% in 2026 while search moderates to 3.4% and is on course to overtake combined linear and connected TV spend.

The technology layer beneath this spend is expanding in step. Fortune Business Insights estimates the marketing technology market at approximately US$223 Billion in 2026 and expects it to more than double by 2034. Estimates of the broader adtech market vary with scope but place it in the region of US$0.9 1.1 Trillion in 2026, with independent houses projecting double-digit annual growth to 2030. The same drivers appear across these forecasts: the shift to programmatic and automated buying, the adoption of AI for targeting and measurement, the move to privacy-first and cookieless approaches, and the growing use of first-party data. For a business serving clients across India, ASEAN, LATAM, MENA, the UK and the USA, this worldwide shift of budgets towards digital, data-driven and AI-optimised advertising defines both its opportunity and its competitive landscape.

In India, the media and entertainment sector grew 9% to RS. 2.78 Lakh Crores in 2025, with digital media crossing RS. 1 Lakh Crores for the first time to overtake television as the industrys largest segment and its principal growth engine. Advertising rose by 13% to RS. 1.5 Trillion, contributing 0.41% to Indias GDP. Within that, digital advertising grew 26% to RS. 94,700 Crores 63% of all advertising revenue, while television advertising declined by more than 10%. The sector is projected to reach RS. 3.3 Trillion by 2028, growing at a CAGR of over 7%, with spending continuing to move towards a measurable, technology-led format.

The defining structural development of recent years is the coming together of advertising and marketing technology into unified, AI-native stacks. As the industry shifts from services-and agency-led models towards platform- and product-led economics, scale, proprietary data and engineering depth have become the primary sources of competitive advantage. India, with its established strengths in systems engineering and machine learning, is increasingly positioned as a builder of such platforms for global markets rather than a provider of outsourced delivery.

Outlook

The industry is entering a phase in which growth and intelligence are closely linked. Digitals share of advertising is set to keep rising, retail media and connected TV are reshaping where budgets flow, and AI is moving from a targeting aid to the organising logic behind how campaigns are planned, bought and measured. In this environment, advertisers are consolidating spend with partners that can show measurable outcomes across channels and are choosing integrated, full-stack platforms over single-purpose tools. For technology-led companies with proprietary data and engineering depth, and particularly for those building globally scalable platforms from India, these shifts point to a sustained, multi-year runway across both domestic and international markets.

The specific demand drivers, competitive dynamics and regulatory shifts shaping this landscape are discussed in the Operating landscape section of this report on Pg. 18.

OPPORTUNITIES AND THREATS Opportunities

• International expansion: International markets contributed 11.5% of revenue in FY 25-26. The Company has a presence across India, ASEAN, LATAM, MENA the UK and the USA. These are higher-value markets, and they can be served from its India-based global capability model without a matching rise in cost.

• Domestic wallet share: There is room to deepen engagement with large enterprise clients and to build a scalable mid-market business through sector-led solutions, cross-selling and agency partnerships.

• Scale economics: The Companys asset-light, cloud-native operating model works alongside its outcomes-as-a-service pricing. Together they allow unit economics to improve as the Company grows, aligning revenue growth with margin expansion.

Threats

• Evolving regulatory environment: The digital advertising industry operates within an evolving regulatory and policy environment, where changes relating to data privacy, digital governance, consumer protection and advertising standards may influence industry practices and compliance requirements.

• Rapid technological change and competitive intensity:

The adtech industry continues to evolve rapidly, driven by advances in AI, automation, changing consumer behaviour and the emergence of new media channels. These shifts can reshape competitive dynamics, technology standards and advertiser preferences across the industry.

• Global market and currency dynamics: As digital advertising becomes increasingly global, businesses operating across multiple markets are exposed to changing economic conditions and foreign exchange movements. A diversified geographic presence and revenues generated across both INR and USD provide a natural hedge against currency fluctuations while supporting international growth.

BUSINESS PERFORMANCE REVIEW

The Company operates as an AI-native advertising and consumer-growth business. For the year under review, it operated in a single reportable business segment. Its offering is delivered through the proprietary GMP 360 technology stack, organised around the A3 framework Awareness, Acquisition and Activation. The stack comprises seven platforms that span the consumer journey: PrsmX, SurgeX, ResurgeX, DiscvrX, PiiX, OrbitX and AmplifiX. The platform-level capabilities are detailed on Pg. 34 in this report.

Performance during the year was led by strong demand from direct advertisers, with growing contributions from Quick Commerce, BFSI, Fintech and Retail. Revenue quality was a defining feature of the model: direct clients accounted for 73.9% of revenue. This reflects durable enterprise relationships rather than lower-margin volume routed through intermediaries. The Company served over 150 brands across more than 10 markets. Geographically, the business stayed anchored in India while broadening its international footprint. International markets contributed 11.5% of revenue during FY 25-26, supported by the launch of UK operations and further expansion across Latin America. Operationally, outcomes delivered rose through each quarter of the year, which shows the scalability of the platform and the fit between the Outcomes-as-a-Service model and client growth.

FINANCIAL PERFORMANCE REVIEW

Revenue from operations for FY 25-26 stood at RS. 218.48 Crores. Total income was RS. 220.24 Crores. Growth was led by direct advertiser demand across Quick Commerce, BFSI, Fintech and Retail, with a revenue mix weighted towards direct clients. The largest cost line was supply and data cost at RS. 131.59 Crores in line with the media and inventory economics of the business. Employee benefits expense was RS. 25.91 Crores and other expenses were RS. 15.61 Crores. Finance costs were modest at RS. 4.07 Crores and depreciation and amortisation RS. 2.16 Crores reflecting the asset-light operating model.

The Company delivered EBITDA of RS. 45.37 Crores at a margin of 20.8%, up from 16.5% in the previous year, as operating leverage improved with scale. Profit before tax was RS. 40.90 Crores and profit after tax RS. 29.35 Crores at a net profit margin of 13. previous year: 11.1%. Total comprehensive income for the year was RS. 29.95 Crores. Basic and diluted earnings per share were RS. 19.49, on the pre-subdivision face value of RS. 10 per share.

Financial position and liquidity

The Companys financial position strengthened materially during the year. Total net worth rose to Rs. 90.56 Crores from RS. 11.18 Crores driven by a preferential issue of equity of approximately RS. 50 Crores and by internal accruals. Borrowings stayed low at RS. 8.49 Crores keeping the debt-equity ratio at 0.4. The balance sheet carried cash and cash equivalents of RS. 39.94 Crores current investments of Rs. 30.77 Crores and trade receivables of Rs. 59.33 Crores with a current ratio of 2.47. Net cash generated from operating activities was RS. 34.82 Crores. This funded further investment in platform and technology capability, including intangible assets under development of RS. 9.23 Crores.

Consolidated performance

(Rs. in Crores)

*Refer note 46 of consolidated financials statements

Key financial ratios

RISK MANAGEMENT

The Company recognises that risk is an integral part of every business activity. It has adopted a Risk Management Policy, revised and approved by the Board of Directors in November 2025, to identify, assess, mitigate, monitor and report key risks on a periodic basis. The Policy is built around the Companys vision and strategic goals. It follows an integrated approach, under which risk management is embedded in day-to-day operations rather than treated as a separate activity. Under the Policy, the Company identifies key risk categories spanning strategic, financial, operational, regulatory, reputational, third-party, sustainability and technological risks. These arise from both external and internal factors. External factors include the economic and market environment, the political landscape, competition, technology obsolescence and legal developments. Internal factors include risks relating to the business and industry, data-protection and regulatory developments, operational efficiency, protection of proprietary information, quality assurance and human resource management.

Mitigation plans for key risks are aligned with the Companys strategic business plans and performance management system and are reviewed periodically by senior leadership. The Company maintains defined policies, standard operating procedures and controls to minimise financial and operational risks. These are supported by internal audit reviews, which provide independent assurance to the Audit Committee on the adequacy and effectiveness of risk management. Compliance with the Companys Code of Conduct and Whistleblower Policy further reinforces an ethical culture and responsible decision-making.

The Board is responsible for implementing and monitoring the risk management framework. Independent Directors bring independent judgement to the Boards deliberations on risk, and the Audit Committee evaluates the effectiveness of the risk management systems. The Risk Management Policy is available on the Companys website.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal financial controls through policies and procedures suited to the size and nature of its operations, and these controls are operating effectively and adequately. They are designed to ensure the efficient conduct of business, the safeguarding of assets, the prevention and detection of frauds and errors, the accurate maintenance of books of account, the timely preparation of reliable financial information, and adherence to applicable compliance requirements.

The Companys Internal Auditors periodically evaluate the adequacy and effectiveness of the internal control systems and submit their reports to the Audit Committee. The Audit Committee reviews the audit findings and monitors the implementation of corrective actions, wherever necessary. The Management also reviews the internal control framework on a periodic basis and strengthens the same in line with the evolving business requirements to ensure its continued adequacy and effectiveness.

HUMAN RESOURCES

The Companys people are central to building and scaling a differentiated, technology-led business. Across the Group, the workforce numbers more than 200 professionals, including technology entrepreneurs and experienced industry leaders. Their combined expertise in engineering, machine learning and digital advertising supports the Companys platform capabilities. As on March 31, 2026, the listed entity had 12 employees, including the Executive Directors. The Groups operating teams sit principally within its operating subsidiary. The Company introduced the Mobavenue AI Tech Employee Stock Option Scheme 2025 (ESOP 2025) to attract and retain specialised talent and to align employee interests with long-term value creation. Employee relations across the Group were cordial throughout the year.

OUTLOOK

The Company enters FY 26-27 from a strengthened position, with a scalable proprietary platform, a healthy balance sheet and a widening international footprint. Its priorities are to deepen AI capabilities, expand across domestic and international markets, and invest in technology that reinforces its competitive advantage. It will pursue these while maintaining disciplined capital allocation.

The near-term operating framework, the Rule of 50, targets annual revenue growth of more than 30% alongside EBITDA margins above 20%. Over the longer term, the Companys Mission 2030 ambition is to build a globally scalable, AI-native platform from India. The Company established its platform and operating foundations in FY 25-26. The focus for the year ahead is to scale them with consistency and discipline and to create long-term value for shareholders and other stakeholders.

CAUTIONARY STATEMENT

Certain statements in this Management Discussion and Analysis Report concerning the future growth prospects are forward- looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, intense competition in our industry including those factors which may affect the Companys cost advantage, seasonality of the business, wage increases, Companys ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, client concentration, Companys ability to manage its international operations, Companys ability to successfully complete and integrate potential acquisitions, liability for damages on Companys contracts, the success of the companies in which Company has made strategic investments, political instability, legal restrictions on raising capital or acquiring companies outside India and unauthorized use of our intellectual property and general economic conditions affecting our industry or the global economy.