Naapbooks Ltd Management Discussions

Overview

Naapbooks Limited is a listed SME company that designs and develops enterprise-grade IT solutions, with an Enterprise-first focus spanning ERP services, GovTech, SaaS platforms, blockchain, and AI-driven compliance products. Our offerings include VizMan (Visitor Management), InsiderQ (Compliance SaaS), ERP implementation services, blockchain platforms (eVoting, eAuction), the eNotary Platform (piloted during the year) [confirm status], and the Restaurant SaaS platform [confirm launch status]. The company provides a wide spectrum of services, covering design, development, deployment, system integration, consulting, and maintenance of enterprise and government digital solutions. These services extend across Fintech, Compliance, Hospitality, BFSI, and Manufacturing enterprises and SMEs, supported by our expertise in cloud, AI, IoT, and blockchain, and by our international Marketing Efforts.

FY 2025 26 was a year in which the strategic pivots of the previous year began to translate into scale. The company achieved 17.55 crore in revenues, representing about 44% YoY growth compared to 12.14 crore in FY 2024 25. Net profit rose to 8.30 crore from 4.48 crore, taking the net profit margin to approximately 47% from 36.78%, while Return on Equity improved to 20.68% from 17.1%. Investment in intangible assets under development increased sharply during the year, reflecting the build-out of the eNotary Platform, enterprise products, and AI-driven capabilities. Importantly, Naapbooks advanced the eNotary Platform from initiation to pilot with its state partners, and executed the international rollout of VizMan from Q2 FY 2025 26 across global markets, laying the foundation for accelerated growth in FY 2026 27.

Industry Structure and Developments

The IT and SaaS industry globally is undergoing a significant transformation. Cloud-first strategies and AI-driven automation have moved from adoption to scale, while enterprises seek cost optimisation, data sovereignty and compliance-ready solutions. Gartner projects worldwide IT spending to reach USD 6.37 trillion in 2026, growing 14.2% year-on-year, with software spending crossing USD 1.47 trillion (up 15.5%) and AI infrastructure emerging as the single largest growth driver. PwC estimates AI will add USD 15.7 trillion to global GDP by 2030, making compliance and AI-enabled platforms increasingly valuable.

In India, the IT sector continues to thrive. The Indian technology industry is estimated to have reached USD 315 billion in FY 2025 26, crossing the USD 300 billion milestone, with exports of about USD 246 billion (NASSCOM, IBEF). The industry now employs nearly 6 million people directly, with AI-related revenues already at USD 10 12 billion and over 2 million professionals trained in AI. NASSCOM has set a revenue goal of USD 500 billion by 2030. Indias digital economy accounted for roughly 12% of national income and is expected to contribute nearly one-fifth of GDP by 2030, with the digital sector employing close to 15 million workers (MeitY).

Key sector developments include:

Indias IT spending is forecast to grow 10.6% in 2026 to USD 176.3 billion, with software the fastest-growing category at 17.6% (Gartner).

End-user public cloud spending in India is expected to surpass USD 17.5 billion in 2026, growing 28.1%, with SaaS at about USD 4.6 billion (Gartner).

Software services exports reached USD 204.7 billion in FY 2024 25 (RBI), growing 7.3% year-on-year, and are estimated at around USD 246 billion for FY 2025 26 across the wider tech industry.

IT-SEZs remain critical, with 419 formally approved SEZs as of July 2026, the majority of them in IT & ITeS.

Tier II cities such as Ahmedabad, Coimbatore, Nagpur, Visakhapatnam and Bhubaneswar are emerging as new IT hubs, recording over 50% IT hiring growth against 12 15% in Bengaluru and NCR, with cost savings of around 30%.

These trends reflect both domestic opportunities (SME digitisation, GovTech adoption, GCC expansion) and international expansion potential for players like Naapbooks.

Opportunities and Threats

Opportunities

Rising SaaS adoption by SMEs, driven by affordability, AI-enabled automation and growing compliance requirements under the DPDP regime.

Indias services exports are targeted to cross USD 1 trillion by 2030, with the technology industry aiming for USD 500 billion in revenue over the same period, creating scope for SaaS providers to expand internationally.

The eNotary Platform, piloted during FY 2025 26 [confirm status], positions Naapbooks as a GovTech leader with a path to nationwide scale-up in FY 2026 27.

VizMans international rollout, initiated in Q2 FY 2025 26 [confirm markets live], opens access to North American, European, Middle Eastern and Asian markets, supported by the Companys UAE presence.

ERP services and the Restaurant SaaS platform [confirm launch status] diversify revenue streams and deepen SME penetration.

Rapid growth of Global Capability Centres and Tier II technology hubs, including Ahmedabad, expands the addressable enterprise base close to home.

Threats

Geopolitical and trade uncertainty affecting IT budgets in mature markets, even as global IT spending grows.

Intense competition from large IT players and well-funded SaaS and AI-native startups.

Rapid AI adoption could compress pricing for traditional IT services and shorten product cycles.

Cybersecurity threats and evolving regulation (DPDP Rules, data localisation, sovereign cloud mandates) remain critical risks.

Dependency on government projects exposes the business to policy-driven and procurement delays.

Talent retention in AI and cloud skills amid industry-wide demand.

Our Strategy

Our strategy is to become an Enterprise-first, globally recognised IT and GovTech partner. The approach anchors the business in long-term enterprise and government engagements, with SaaS products built to serve those relationships at scale. Key pillars include:

1. Enterprise Solutions Deepening engagements with enterprise and government clients through ERP implementations, custom platforms and managed services that create long-tenure, high-value relationships.

2. GovTech Differentiation Scaling the eNotary Platform from pilot to nationwide deployment and building on the Companys e-governance credentials.

3. Product-Led Recurring Revenues Growing annuity income from VizMan, InsiderQ and the Restaurant SaaS platform as an extension of enterprise relationships rather than a standalone SMB play.

4. Global Expansion Deepening VizMans presence across the seven international markets entered from Q3 FY 2025 26 and adding new geographies in FY 2026 27, supported by the its Foreign marketing efforts.

5. Innovation Focus Embedding AI and blockchain across platforms, reflected in the sharp increase in product development investment during the year.

This roadmap ensures a resilient business model, combining the stability of enterprise and government engagements with the scalability of recurring product revenues, while positioning Naapbooks for accelerated domestic and international growth.

Strengths

Compliance-Ready Design SaaS platforms built with governance, security and legal alignment.

GovTech Partnerships Credibility from projects like eNotary.

Diverse Portfolio SaaS (VizMan, InsiderQ), ERP services, blockchain and e-governance platforms.

Certified Systems ISO 9001:2015 and ISO/IEC 27001:2022 certifications [confirm the 2013 version was withdrawn in October 2025] .

Agile Workforce Experienced leadership and a talent base trained in AI, blockchain and SaaS.

Customer-Centric Culture Strong client relationships driving repeat business.

Strengthened Financial Position Consistent profitability with a near debt-free balance sheet.

Financial Condition

The discussions in this section relate to the standalone, Rupee-denominated financial results pertaining to the year ended March 31, 2026. The financial statements of Naapbooks Limited are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed under section 133 of the Companies Act, 2013, read with relevant rules thereunder and other accounting principles generally accepted in India. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. All assets and liabilities have been classified as current and non-current as per the normal operating cycle of the Company and other criteria set out in Schedule III of the Companies Act, 2013.

Revenue from Operations: 17.55 crore in FY 2025 26 vs 12.18 crore in FY 2024 25, a growth of about 44%.

PAT: 8.30 crore in FY 2025 26 vs 4.48 crore in FY 2024 25, a growth of about 85%.

Operating Margin: 63.87% in FY 2025 26 vs 53.28% in FY 2024 25.

ROE: 20.68% in FY 2025 26 vs 17.10% in FY 2024 25.

Debt-Equity: 0.03x in FY 2025 26 vs 0.02x in FY 2024 25.

Results of Operations

The company recorded a 44.06% YoY increase in revenue and a 63.87% operating margin, reflecting SaaS and enterprise scalability. While government projects contributed credibility, SaaS solutions like VizMan and InsiderQ accounted for a larger share of recurring revenues. ERP services, introduced in FY 2024 25, added diversity. The Consolidated and Standalone Statement of Profit and Loss is as follows:

(Rs. in Lakhs)

Particulars		Consolidated				Standalone
			FY 2026		FY 2025		FY 2026		FY 2025
	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income	% Growth	Amount	% of Total Income
I. Net Sales/Income from Operations	1755.24	98.41	1218.39	98.10	1755.24	98.41	44.06	1218.39	98.10
II. Other Income	28.33	1.59	23.62	1.90	28.35	1.59	20.08	23.61	1.90
III. Total Income (I+II)	1783.57	100.00	1242.01	100.00	1783.59	100.00	43.61	1242.00	100.00
IV. Earnings Before interest, Taxes, Depreciation and Amortization Expense	1186.25	66.51	711.76	57.31	1186.27	66.51	66.67	711.75	57.31
V. Finance Cost	20.14	1.13	29.02	2.34	20.14	1.13	-30.80	29.02	2.34
VI. Depreciation and Amortization Expense	65.21	3.66	62.64	5.04	65.21	3.66	4.10	62.64	5.04
VII. Profit Before Tax (IV-V-VI)	1100.89	61.72	620.10	49.93	1100.92	61.72	77.54	620.09	49.93
VIII. Tax Expense:				0.00
i Current Tax Expense	275.36	15.44	168.40	13.56	275.36	15.44	63.52	168.40	13.56
ii MAT Credit	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
iii MAT Credit Relating to prior years	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
iv Tax Expense Relating to prior years	0.00	0.00	6.55	0.53	0.00	0.00	-100.00	6.55	0.53
v Deferred Tax (Asset / Liabilities)	-4.73	-0.27	-2.96	-0.24	-4.73	-0.27	59.80	-2.96	-0.24
IX. Profit After Tax before Minority Interest (VII-VIII)	830.25	46.55	448.11	36.08	830.28	46.55	85.29	448.10	36.08
X. Minority Interest	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
XI. Profit for the year after tax and Minority Interest (IX-X)	830.25	46.55	448.11	36.08	830.28	46.55	85.29	448.10	36.08

During the year under review, the Company continued its strong growth trajectory. The standalone total revenue from operations amounted to 1,755.24 lakhs, representing an increase of about 44% compared to the previous years revenue of 1,218.39 lakhs. This sustained revenue growth reflects rising demand from enterprise and government clients, the commencement of VizMans international rollout and continued traction in ERP and compliance offerings.

The standalone profit after tax rose to 830.28 lakhs, marking an increase of about 85% from the previous years profit of 448.10 lakhs. Profit growth outpacing revenue growth reflects operating leverage from the Companys product-led model, disciplined cost management and improved operational efficiency.

In addition, the Company reported consolidated financial results for the year. The total revenue from operations on a consolidated basis stood at 1,755.24 lakhs, as against 1,218.39 lakhs in the previous year. The consolidated profit after tax, after accounting for minority interests, was 830.25 lakhs, as against 448.11 lakhs in the previous year. These consolidated figures highlight the overall strength and stability of the Companys financial position and its ability to generate sustainable returns for its stakeholders.

On behalf of the Board of Directors

	Sd/-	Sd/-
	Yaman Saluja	Ashish Jain
Place: Ahmedabad	Whole Time Director & CFO	Director & CEO
Date: September 08, 2026	(DIN: 07773205)	(DIN: 07783857)