Newjaisa Technologies Ltd Management Discussions

Company Overview:

Founded in 2020, Newjaisa Technologies Limited ("Newjaisa" or "the Company"), listed on the NSE SME platform under the ticker ‘NEWJAISA, is a technology-driven, direct-to-consumer company specialising in refurbished IT electronics. The Company offers high-quality refurbished electronics, including laptops, desktops, and peripherals, at significant discounts compared to new products. Its comprehensive business model encompasses an end-to-end reverse supply chain for IT assets — procuring used IT assets, refurbishing them to near-new condition through a rigorous, R2v3 (Responsible Recycling) certified process, and selling them directly to end-use customers, both businesses and individual consumers.

Operating exclusively in the Indian market, the Company caters to a Pan-India customer base through its own e-commerce platform and a growing enterprise/B2B channel, alongside marketplace and education-sector relationships, backed by a pan-India delivery and after-sales service network. Newjaisa has sold over 50,000 refurbished devices to date and remains among the larger organised players in Indias refurbished IT electronics market. By delivering high-quality products at affordable prices, backed by service guarantees and warranties, the Company remains committed to making technology accessible to all while contributing to environmental sustainability and addressing Indias growing e-waste burden.

There has been no change in the nature of business of the Company during the financial year ended March 31, 2026. Please refer to the Companys website www.newjaisa.com for further details on the business.

(a) Industry structure and developments:

Refurbished Laptops and Desktops Market in India: A Growing but Evolving Opportunity

The refurbished electronics market in India continues to grow steadily, supported by rising new-device prices, growing digital inclusion programmes, expanding enterprise IT-asset-disposition (ITAD) mandates, and increasing consumer and institutional acceptance of quality-assured refurbished products.

Market Metrics	Indias Refurbished Computers & Laptops Market
Key 2025-26 Catalyst	Microsofts withdrawal of free support for Windows 10 (effective October 2025) has released a large pool of higher-specification, 8th-generation-and- above devices into refurbishment channels, while simultaneously reducing demand for pre-8th-generation refurbished stock — a dynamic the Company experienced directly during the year (see Note (g) below).
Component Cost Inflation	Industry-wide increases in memory (RAM/SSD) and component prices — reported by management at approximately 30-40% year-on-year — have improved the relative price attractiveness of refurbished devices versus new devices.

*(Source: Future Market Insights, India Refurbished Computers and Laptops Market, 2026) **(Source: Mordor Intelligence, Refurbished Computers and Laptops Market Forecast, 2026)

Key Drivers of Growth

• Affordable Electronics: Continued demand for cost-effective computing, amplified by rising new-device prices, remains a major driver for both individual consumers and businesses.

• Enterprise ESG and Circular-Economy Mandates: Corporates are increasingly embedding refurbished/circular procurement targets into ESG scorecards, driving large-volume, recurring IT-asset refresh cycles — a trend the Company is actively capturing through its enterprise/B2B vertical.

• Environmental Concerns and E-waste Management: Growing environmental consciousness and government emphasis on responsible e-waste management continue to support the category.

• Technology Transition Cycles: End-of-support events for legacy operating systems (e.g., Windows 10) accelerate the release of higher-grade used devices into the refurbishment pipeline.

Challenges

• Quality Perception: Despite growing acceptance, some consumers continue to have quality and longevity concerns relative to new products.

• Distribution/Channel Concentration: Reliance on third-party online marketplaces exposes participants to abrupt category or policy changes by such platforms, as evidenced industry-wide by a leading marketplaces exit from the refurbished electronics category during the year (discussed further below).

• Inventory and Obsolescence Management: Technology transitions (e.g., OS end-of-support) can rapidly impair the value of older-generation inventory, requiring active ageing review and disciplined provisioning.

• Regulatory Compliance: Adherence to evolving regulations and standards for refurbished products remains complex and requires robust internal processes.

Market Players

Key organised players in the Indian refurbished electronics market include Cashify, Budli.in, Xfurbish, Electronics Bazaar and other e-commerce/ITAD-focused platforms, alongside brand-backed OEM renewal programmes. As the market evolves, growth in refurbished laptops and desktops continues to reflect broader trends in consumer and enterprise behaviour, technological change, and environmental sustainability.

Development During the Year: Marketplace Channel Disruption

During Q4 of FY 2024-25, Amazon discontinued its refurbished electronics category on its India marketplace. As this channel had historically accounted for a majority of the Companys sales, its discontinuation had a material impact on the Companys revenue and operating performance in FY 2025-26, and materially reshaped the Companys go-to-market strategy during the year, as discussed in detail in sections (c), (d), (e) and (g) below.

Regulatory Environment

The Indian governments policies and initiatives on electronics recycling and e-waste management continue to bolster the growth of the refurbished electronics sector. The emphasis on sustainability and responsible disposal of electronic waste aligns with the broader objectives of promoting environmental stewardship, resource efficiency and a transition toward a circular economy in the electronics sector. These regulatory frameworks and strategic initiatives are expected to continue creating a favourable environment for the refurbished electronics market.

(b) Opportunities and Threats SWOT Analysis STRENGTHS

• R2v3 (Responsible Recycling) certification, completed during the year, strengthens the Companys credentials for direct sourcing partnerships with OEMs and large enterprises.

• A diversified, multi-channel go-to-market model — own D2C website, enterprise/B2B sales, and the education vertical — built and scaled during FY 2025-26, reducing dependence on any single third-party marketplace.

• Established pan-India refurbishment infrastructure with an installed monthly production capacity of approximately 15,000 units, providing headroom for volume recovery.

• A growing and increasingly retained enterprise customer base, including relationships with 15+ large corporates (among Indias top 100 companies by revenue) and an enterprise customer retention rate of approximately 80%.

• A highly qualified and experienced leadership team that has demonstrated the ability to restructure the cost base and re-orient the business model in response to a significant, unanticipated channel disruption.

WEAKNESSES

• An inventory-heavy operating model exposes the Company to valuation risk from technological obsolescence, as evidenced by the significant one-time inventory write-off recognised during the year.

• Historical revenue concentration in a single third-party marketplace channel proved to be a structural vulnerability when that channel was discontinued.

• Ensuring a consistent supply of skilled engineers and technicians, particularly while rebuilding headcount after the workforce rationalisation undertaken during the year, remains a challenge that could affect the pace of scale-up.

• The intricate nature of the Companys reverse supply chain requires efficient, continuous management of sourcing, logistics and inventory ageing.

OPPORTUNITIES

• Continued growth in Indias refurbished electronics market (~10%+ CAGR), supported by rising new-device prices and enterprise ESG/circular-economy mandates.

• A large and expanding enterprise/B2B and education-sector pipeline offers potential for higher-margin, longer-tenure contracts as compared to pure retail/marketplace sales.

• R2v3 certification and OEM-facing capabilities create scope for direct sourcing and distribution partnerships with manufacturers and large corporates.

• Continued digitalisation and rising disposable income in India support demand for affordable computing devices.

• Supportive government policies on digitalisation and e-waste management create a favourable long-term operating environment.

THREATS

• Renewed concentration risk if the Companys enterprise pipeline conversion or owned-channel growth slows, given the demonstrated impact of losing a single dominant sales channel.

• Further technology-driven obsolescence events (e.g., future changes in OS support cycles) could necessitate additional inventory write-downs.

• Competitive intensity from other organised refurbishers and OEM-backed certified-renewal programmes.

• Working-capital and liquidity pressure from elevated inventory holding and the relatively longer enterprise sales/collection cycle.

• Continued volatility in global component prices and supply chains, which can affect sourcing costs and margins.

• Negative consumer perceptions of refurbished products can hinder demand and limit market expansion, particularly in a market with brand-conscious consumers.

(c) Segment-wise and product-wise performance Revenue Trend (Year-on-Year)

Particulars	2021-22	2022-23	2023-24	2024-25	2025-26
Revenue from Operations (INR in Lakhs)	2,791.90	4,452.98	6,173.21	6,565.51	4,048.82
YoY Growth %	-	59.5%	38.6%	6.4%	(38.3%)

Revenue from Operations declined by approximately 38.33% in FY 2025-26 to INR 4,048.82 lakhs from INR 6,565.51 lakhs in FY 2024-25, reversing four consecutive years of growth. This decline was driven principally by the discontinuation of the Amazon marketplace channel in Q4 FY 2024-25, which had historically contributed approximately 65% of the Companys sales.

Channel-wise Performance

• Marketplace (Amazon) Channel: Discontinued by Amazon during Q4 FY 2024-25; the Companys run-rate on this channel fell from approximately INR 5 crore/month to nil, necessitating a complete re-orientation of the go-to-market model.

• Own D2C Website: The Companys owned digital channel delivered approximately 200% year-on-year growth in FY 2025-26, as the Company increased marketing investment and doubled down on building direct customer relationships.

• Enterprise / B2B and Education: The Company built a dedicated enterprise sales team during the year, resulting in a robust pipeline that includes 15+ large corporate accounts (among Indias top 100 companies) and an enterprise customer retention rate of approximately 80%. Combined, the Companys owned channels (website plus enterprise/education) grew approximately 225% comparing the start to the end of FY 2025-26.

• Overall monthly sales run-rate improved progressively through the second half of the year, from approximately INR 2.8 crore to approximately INR 3.6-3.9 crore per month by February-March 2026, aided in part by two large enterprise orders.

• Average selling price improved on a year-on-year basis as the sales mix shifted from predominantly retail/marketplace sales toward enterprise sales, which management believes will support margin recovery over the long term.

Market Segmentation by Price and Processor (Industry Reference Data)

The following tables present broad industry-wide segmentation benchmarks for the Indian refurbished laptop and desktop market, consistent with the basis reported in the previous years MDAR, and are provided as general market-structure context rather than Company-specific figures.

Budget Segment	Laptops	Desktops
INR 20,000 – INR 40,000	Holds a significant market share of 40%, reflecting strong consumer demand for cost-effective computing solutions.	A larger proportion of the market ( 50%) is attributed to this price range, indicating a preference for affordable desktop options.
INR 40,000 – INR 80,000 (Mid-range)	Commands a 30% market share, representing a balanced choice between cost and performance.	Desktops in this price range also account for 30% of the market, underscoring its importance as a popular price bracket. Holds a 20% market share, reflecting a
INR 80,000+ (Premium)	Makes up 30% of the market share, highlighting notable interest in high-end refurbished laptops.	smaller but significant portion of the market seeking high-quality refurbished desktops.

(Source: TechSci Research)

Drivers and Challenges

Drivers: Rising new-device prices; growing enterprise ESG/circular-procurement mandates; increasing awareness and acceptance of refurbished products; environmental concerns; end-of-support technology transitions releasing higher-grade inventory into the market.

Challenges: Quality and reliability perception; channel/marketplace concentration risk; inventory ageing and obsolescence management; competition from new, lower-priced entry-level devices.

(d) Outlook

FY 2025-26 was, in managements own characterisation, a year of consolidation and re-orientation following the abrupt discontinuation of the Companys dominant marketplace sales channel. Having absorbed this disruption, the Company enters FY 2026-27 with a more diversified revenue base across its own D2C website and a scaling enterprise/B2B and education vertical, and with company-reported monthly EBITDA having turned positive/broke even from around February 2026.

Managements stated priorities for the coming year include: (i) continuing to scale the enterprise/B2B pipeline, leveraging the R2v3 certification to pursue direct OEM and distribution partnerships; (ii) further growing the owned D2C channel through continued, disciplined marketing investment; (iii) normalising the Companys fixed-cost base — comprising facility/capacity costs and leadership/support-function overheads — toward a targeted steady-state level of approximately 7-8% of revenue, down from approximately 15-20% during the year of disruption, as sales volumes scale; and (iv) maintaining disciplined inventory management, including continued external, independent quarterly inventory valuation and ageing review.

As at the date of the Companys FY 2025-26 earnings call, the Company held a cash position of approximately INR 15 crore and an inventory base of approximately INR 26 crore (comprising largely 8th-generation-and-above devices together with related spares), which management does not expect to increase materially, while indicating scope to further optimise inventory levels by approximately 10-15% going forward.

These statements are forward-looking in nature and are subject to the risks and uncertainties set out in the Cautionary Statement at the end of this report and in section (e) below.

(e) Risks and concerns INTERNAL RISK FACTORS 1. Channel Concentration Risk

The Company historically derived a majority of its revenue from a single third-party online marketplace. The abrupt discontinuation of this channel in Q4 FY 2024-25 materially impacted the Companys revenue and profitability in FY 2025-26. While the Company has since diversified into owned D2C and enterprise/B2B channels, renewed or new concentration in any single channel — whether a marketplace, a small number of large enterprise customers, or otherwise — remains a risk to revenue stability.

2. Inventory Valuation and Obsolescence Risk

The refurbished electronics business inherently carries inventory risk arising from technological obsolescence (such as discontinuation of operating-system support for older device generations) and shifts in channel demand. This risk materialised during FY 2025-26 through a significant one-time inventory write-off. Although the Company has since strengthened controls — including independent, external, quarterly inventory valuation and ageing review — the risk of further write-downs in the event of adverse market or technology developments cannot be ruled out.

3. Working Capital and Liquidity Risk

Elevated inventory holding, a relatively longer enterprise sales and collection cycle, and reliance on short-term borrowings for working capital could strain the Companys liquidity if revenue growth does not track managements expectations.

4. Market Adaptation and Product Development Risk

The Companys commercial success remains contingent on its ability to anticipate market and enterprise-customer needs and to manage resources to introduce and upgrade offerings in a timely manner. The market is characterised by rapid technological change, evolving industry standards and shifting customer preferences (including the ongoing transition away from legacy device generations), and any failure to adapt efficiently could adversely affect the Companys competitive position, revenue and profitability.

5. Labour-Intensive Operations Risk

The Companys refurbishment operations remain labour-intensive. Having undertaken a significant headcount rationalisation at the start of FY 2025-26 followed by selective re-hiring as volumes recovered, the Company remains exposed to risks from potential shortages of skilled personnel, wage inflation, and evolving labour regulation as it rebuilds capacity to support growth.

EXTERNAL RISK FACTORS Marketplace / Platform Policy Risk

As demonstrated during the year, the Companys business can be materially affected by unilateral policy or category changes made by third-party e-commerce marketplaces, which are outside the Companys control. Continued diversification of sales channels is intended to mitigate, but cannot fully eliminate, this risk.

Industry Malpractices

The industry faces risks from unethical practices, such as misleading advertising, dishonest pricing, and inaccurate quality/safety claims by some market participants. These practices contribute to general consumer mistrust and may prompt stricter regulatory oversight. As an organised, listed company, Newjaisa is affected by industry-wide norms, and unethical conduct by other industry players could negatively impact the broader category and, in turn, the Companys business and operating results. Ensuring adherence to ethical standards and maintaining transparency remains crucial to mitigating this risk.

Technology Transition and Component Price Risk

Future changes in operating-system support cycles, evolving hardware standards, or volatility in global component prices could affect both the value of the Companys inventory and its sourcing costs.

(f) Internal control systems and their adequacy

Newjaisa Technologies Limited maintains internal control systems commensurate with the nature, size and complexity of its business operations. Well-documented policies and procedures support effective monitoring of business performance, supported by integrated IT systems for day-to-day operations.

During the year, in response to the inventory-related developments discussed in this report, the Company strengthened its inventory-control framework by introducing independent, external, quarterly inventory valuation and ageing review, to provide earlier visibility of obsolescence risk and support more timely provisioning. An independent audit firm periodically reviews the Companys internal controls, focusing on accounting and operational efficiency, with internal auditors reporting their observations and recommendations to the Audit Committee. The Audit Committee regularly reviews these reports and evaluates the effectiveness of the Companys internal control systems, providing recommendations to enhance them where required. Based on such reviews, the Board is satisfied that the Companys internal financial controls are adequate and operating effectively, and that the going-concern basis of preparation of the financial statements for FY 2025-26 remains appropriate.

(g) Discussion on financial performance with respect to operational performance

Particulars (INR in Lakhs)	FY 2025-26	FY 2024-25
Revenue from Operations	4,048.82	6,565.51
Other Income	96.48	79.07
Total Income	4,145.30	6,644.58
Total Expenses	6,248.00	6,768.67
Profit / (Loss) before Tax	(2,102.70)	(124.09)
Profit / (Loss) after Tax	(1,741.89)	(113.18)
Gross Margin Ratio	6.46%	34.96%
Reserves and Surplus	3,971.52	6,034.73
Cash and Bank Balances	1,565.22	1,880.63
Earnings per Share (INR)	(4.90)	(0.33)

Revenue from Operations declined by approximately 38.33% to INR 4,048.82 lakhs in FY 2025-26, from INR 6,565.51 lakhs in FY 2024-25, on account of the discontinuation of the Amazon marketplace channel in Q4 FY 2024-25, partly offset by the ramp-up of the Companys own D2C website and enterprise/B2B channels through the year. Including Other Income of INR 96.48 lakhs, Total Income for the year stood at INR 4,145.30 lakhs, against INR 6,644.58 lakhs in FY 2024-25.

The Gross Margin Ratio declined sharply to approximately 6.46% in FY 2025-26 from approximately 34.96% in FY 2024-25 (on reported basis, i.e. after the one-time inventory write-off; excluding the write-off, gross margin was approximately 36% against 35% in FY 2024-25). This compression was largely attributable to a one-time inventory write-off of approximately INR 12.38 crore recognised within cost of goods sold, together with competitive re-pricing undertaken to liquidate ageing inventory following the loss of the marketplace channel.

Management has attributed the inventory write-off to three principal factors: (i) older-generation devices (approximately 21% of the write-off value) that became harder to liquidate following both the Amazon exit and Microsofts discontinuation of free support for Windows 10 in older device generations; (ii) the loss of the high-volume Amazon channel through which such lower-value stock had previously been liquidated; and (iii) associated spares and components (such as older-generation RAM and hard disks, approximately 60% of the write-off value) written down to reflect their realisable value.

Total Expenses for the year were rationalised to INR 6,248.00 lakhs, a reduction of approximately 7.69% over INR 6,768.67 lakhs in FY 2024-25, reflecting the Companys cost-optimisation actions amid the revenue contraction. Within this, Employee Benefit Expenses declined by approximately 26.11% to INR 1,004.95 lakhs (from INR 1,359.99 lakhs), reflecting an approximately 46% headcount rationalisation implemented at the start of the year, partly offset by an ESOP charge of INR 185.64 lakhs (pre-planned and allocated to the leadership team under the Companys ESOP 2023 scheme) before the Company resumed selective hiring in the final quarter as volumes recovered. Depreciation and amortisation expense increased by approximately 132.3% to INR 421.87 lakhs (from INR 181.61 lakhs), reflecting the facility and capacity investments made to support the Companys growth plans. Finance costs increased by approximately 31.90% to INR 118.73 lakhs (from INR 90.04 lakhs), reflecting increased utilisation of short-term working-capital borrowings during the year.

Consequently, the Company reported a Loss Before Tax of INR 2,102.70 lakhs in FY 2025-26, as compared to a Loss Before Tax of INR 124.09 lakhs in FY 2024-25. After a deferred tax credit of INR 360.80 lakhs, the Loss After Tax stood at INR 1,741.89 lakhs, as against a Loss After Tax of INR 113.18 lakhs in the preceding year — reflecting a significant widening of losses, primarily on account of the revenue contraction and the one-time inventory write-off discussed above.

Excluding these one-time/extraordinary items — comprising the inventory write-off (~INR 12.38 crore), ESOP expense (~INR 1.85 crore) and depreciation on capacity built for growth (~INR 4.22 crore) — management has reported that the Companys underlying EBITDA margin for FY 2025-26 was approximately negative 6%, broadly consistent between the first and second halves of the year, translating into an operating cash burn of approximately INR 2.35 crore for the year. Management has further indicated that monthly EBITDA turned positive/broke even from around February 2026, as revenue volumes on the Companys own channels recovered.

The annual Audited Financial Statements for the financial year ended March 31, 2026 have been prepared in accordance with the applicable provisions of the Companies Act, 2013, Accounting Standards, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as applicable to the Company as an SME-listed entity.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed

At Newjaisa Technologies Limited, employees remain central to the Companys success. FY 2025-26 was a year of significant workforce recalibration: at the start of the year, the Company implemented an approximately 46% headcount rationalisation in response to the sudden loss of its dominant marketplace revenue channel, in order to conserve cash while the business was re-oriented around its own D2C and enterprise channels. As volumes recovered through the second half of the year, the Company resumed selective hiring to rebuild capacity in line with growth.

As of March 31, 2026, Newjaisa Technologies Limited employed 191 persons across its operations, comprising 154 male and 37 female employees (nil transgender employees), as compared to over 400 employees as of March 31, 2024.

The Company continues to invest in a workplace culture that emphasises innovation, collaboration and professional growth, with structured training and leadership-development initiatives, robust health and wellness programmes, and a performance management system built on transparency and meritocracy. The Company remains committed to promoting diversity and inclusion and to building a dynamic, engaged and high-performing team as it scales its enterprise and D2C channels in FY 2026-27.

(i) Details of significant changes in key financial ratios (i.e. change of 25% or more as compared to the immediately previous financial year, with explanation)

** Return on Capital Employed is computed as EBIT ? (Shareholders Funds + Total Borrowings). Note 39 to the audited financial statements presents this ratio on a Net Profit ? Net Worth basis, i.e. (30.24%) for FY 2025-26 and (1.45%) for FY 2024-25, identical to Return on Equity.

The analysis of these financial ratios highlights several key themes for the year:

• Channel disruption impact: The steep decline in revenue following the Amazon marketplace exit is the single largest driver behind the movement in almost every ratio above, including turnover ratios, profitability ratios and return ratios.

• Liquidity: The decline in the Current Ratio, while notable, still reflects a comfortable liquidity position (3.65x), supported by the Companys cash balance of INR 1,565.22 lakhs as of year-end.

• Leverage: The Company continues to operate with minimal long-term debt, and the Debt-Equity Ratio, though it declined by 50%, remains negligible in absolute terms (0.01x, computed on long-term borrowings; 0.22x including short-term working-capital borrowings against 0.18x in FY 2024-25). Interest Coverage turned negative as EBIT turned negative.

• Profitability: The widening of losses, reflected in the Net Profit Ratio, Return on Equity, Return on Capital Employed, Operating Profit Margin and Interest Coverage, is driven principally by the one-time inventory write-off, the revenue contraction and the ESOP and depreciation charges discussed in section (g) above, rather than a deterioration in the Companys core unit economics, which management expects to normalise as channel diversification progresses.

• Working capital efficiency: Lower turnover ratios (inventory, receivables and payables) are consistent with the lower revenue base and the Companys deliberate inventory liquidation strategy during the year.

Disclosure of Accounting Treatment:No treatment different from that prescribed under the applicable Accounting Standards has been followed in the preparation of the financial statements of the Company. Accordingly, no disclosure is required in this regard.

Cautionary statement

This document contains forward-looking statements about expected events and the Companys financial and operational results. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant chance that the assumptions, predictions, and other forward-looking statements may not be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions and actual results and events to differ materially from those expressed here.