NSB BPO Solutions Ltd Management Discussions

ANNEXURE: V

For the Financial Year 2025-26

1. PREFACE

The Management Discussion and Analysis Report ("MD&A") forms an integral part of the Annual Report of NSB BPO Solutions Limited ("NSB BPO" or "the Company") for the financial year ended March 31, 2026.

The Company is engaged primarily in the business of providing Business Process Outsourcing ("BPO") services and support solutions, with a diversified portfolio comprising voice and non-voice customer support, customer care and help-line services, tele-sales, tele-collections, digitization and management of documents, customer onboarding and form processing, application and KYC processing, warehousing and archival of documents and payroll management services.

In addition to its BPO activities, the Company is also engaged in the B2B/B2C trading of FMCG and staple goods, including pulses, sugar, rice, dry fruits, fruits and vegetables.

The Companys business model is focused on providing efficient, accurate and cost-effective solutions to its clients by combining skilled human resources, technology-enabled processes and industry practices. The Company serves clients across a diversified range of sectors, including BFSI, telecom, insurance, e-commerce, food delivery, travel and hospitality, healthcare, education, government, retail and logistics.

The Company currently operates within India and focuses on serving the domestic market. The Management remains focused on strengthening the Companys existing business, improving operational efficiency, expanding its service capabilities and pursuing sustainable growth opportunities.

2. INDUSTRY STRUCTURE AND DEVELOPMENT

The Business Process Outsourcing industry has become an important component of the modern business ecosystem as organisations increasingly seek to outsource non-core and specialised activities to improve operational efficiency, optimise costs and focus on their core business functions.

The Indian BPO industry continues to benefit from the countrys large and skilled workforce, cost competitiveness, technological capabilities and established service delivery infrastructure. Increasing digitisation of business processes, growing adoption of technology and the need for efficient customer engagement have created opportunities for service providers offering both voice and non-voice business process solutions.

The BPO industry is also witnessing increasing integration of technology, automation, analytics and digital platforms into traditional service delivery models. Clients are increasingly seeking service providers that can offer scalable, reliable and technology-enabled solutions while maintaining service quality, data confidentiality and operational efficiency.

NSB BPO operates across multiple service categories, including voice-based customer care and support, inbound and outbound call centre services, tele-sales, payment reminders and collections, back-office processing, document digitisation, customer onboarding, application processing, document management and archival, and payroll management.

The Companys diversified sectoral presence includes BFSI, telecom, insurance, e-commerce, food delivery, travel and hospitality, healthcare, education, government, retail and logistics, thereby reducing dependence on any single industry segment and providing opportunities for cross-sectoral business growth.

The Company also undertakes B2B/B2C trading of FMCG and staple products. Its presence across different parts of India provides opportunities to leverage geographical sourcing advantages for procurement and supply of such products to retailers.

The Management believes that the continued adoption of outsourcing and technology-enabled business processes, together with increasing demand for customer support and back-office solutions, provides a favorable environment for the Companys principal line of business.

3. SWOT ANALYSIS

A. Competitive Strengths

The Companys key competitive strengths include:

• Established experience in BPO services: The Company has been engaged in the BPO business for more than 20 years and has developed experience across multiple business processes and industry segments.
• Diversified service portfolio: The Company provides voice-based services, back-office processing, document management, customer onboarding, application processing, payroll management and other support services.
• Voice and non-voice capabilities: The Companys operations cover both inbound and outbound voice processes as well as non-voice and back-office functions.
• Diversified customer and industry base: The Company serves clients across BFSI, telecom, insurance, e-commerce, food delivery, travel and hospitality, healthcare, education, government, retail and logistics sectors.
• Customised service solutions: The Company is able to tailor its services according to the requirements and processes of individual clients.
• Skilled manpower: The Companys service delivery is supported by trained personnel with experience in handling various business processes.
• Technology-enabled operations: The Company seeks to utilise technology and process improvements to enhance service quality, efficiency and productivity.
• Diversified revenue sources: In addition to BPO services, the Companys B2B FMCG and staple trading activities provide an additional business vertical.
• Pan-India presence: The Companys domestic operations and presence in different parts of India provide opportunities to serve clients and source products across geographical markets.

B. Weaknesses

The Company recognises certain inherent challenges associated with its business model, including:

• Dependence on skilled and trained manpower for delivery of quality services.
• Exposure to employee attrition, particularly in labor-intensive BPO processes.
• Pricing pressure arising from competition within the BPO industry.
• Requirement for continuous investment in technology, infrastructure and employee training.
• Dependence on stable technology, telecommunications and other operational infrastructure.
• The BPO business involves significant dependence on client requirements and business volumes.
• The FMCG and staple trading business is exposed to fluctuations in procurement prices, supply conditions and market demand.

The Company seeks to address these challenges through employee development, process improvement, operational monitoring, customer engagement and prudent business management.

C. Opportunities

The Company sees significant opportunities arising from the continued growth of outsourcing and digitization of business processes. Key opportunities include:

• Increasing outsourcing of non-core activities by businesses.
• Growing demand for customer care and customer support services.
• Expansion of digital and technology-enabled back-office processes.
• Increasing requirement for document digitisation and management.
• Growing demand for customer onboarding, application processing and KYC-related services.
• Opportunities in payroll management and human resource support services.
• Increasing adoption of outsourcing by start-ups, mid-sized enterprises and large corporates.
• Expansion of service offerings across existing industry verticals.
• Opportunities to improve productivity through automation and technology.
• Scope for further development of the Companys B2B FMCG and staple trading business.
• Opportunities arising from the Companys diversified geographical and sectoral presence.

The Company intends to leverage these opportunities while maintaining appropriate focus on service quality, operational efficiency and customer satisfaction.

D. Threats

The principal threats and challenges faced by the Company include:

• Intense competition from domestic and international BPO service providers.
• Increasing adoption of automation and artificial intelligence which may alter traditional BPO service models.
• Employee attrition and competition for skilled manpower.
• Increasing customer expectations regarding quality, turnaround time and service levels.
• Cybersecurity, data privacy and confidentiality risks.
• Dependence on uninterrupted technology and communication infrastructure.
• Changes in regulatory and compliance requirements.
• Pricing pressure and margin compression.
• Economic slowdown or reduction in outsourcing expenditure by clients.
• Customer concentration risk, wherever applicable.

• Volatility in procurement prices and supply conditions in the FMCG and staple trading business.

The Company continues to monitor these risks and adopts appropriate measures to mitigate their potential impact.

4. OUTLOOK

The Management believes that the long-term outlook for the BPO and business support services sector remains positive, supported by the increasing focus of businesses on cost optimisation, operational efficiency, customer experience and outsourcing of non-core activities.

The Companys diversified service offering across voice-based customer care, tele-sales and collections, back-office processing, document digitisation, customer onboarding, application processing and payroll management provides opportunities to cater to varying requirements of clients across different industries.

The Companys presence across sectors such as BFSI, telecom, insurance, e-commerce, food delivery, hospitality, healthcare, education, government, retail and logistics provides a diversified platform for future growth.

The Management intends to focus on:

• strengthening relationships with existing clients;
• acquiring new customers across different industry segments;
• expanding the Companys service capabilities;
• improving operational efficiency and productivity;
• leveraging technology and automation where appropriate;
• enhancing employee capabilities through training and development;
• maintaining service quality and customer satisfaction; and
• developing opportunities in its B2B FMCG and staple trading business.

The Company remains cautiously optimistic about its future prospects while recognising the competitive and evolving nature of the BPO industry.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the nature, size and complexity of its business operations.

The internal control framework is designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, safeguarding of assets, reliability of financial reporting and compliance with applicable laws, rules and regulations.

The Companys internal controls cover key areas including financial transactions, authorisation mechanisms, operational processes, statutory compliance, asset protection and financial reporting.

Considering the nature of the Companys BPO operations, appropriate operational processes are maintained for monitoring service delivery, employee deployment, customer requirements and business processes. The Company periodically reviews its internal control systems and undertakes corrective measures wherever necessary.

The Audit Committee of the Board reviews matters relating to financial reporting, internal controls, audit observations and compliance, as applicable under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Based on the assessment undertaken by the Management and the reports of the statutory auditors/internal auditors, wherever applicable, the Company believes that the internal control systems are adequate and commensurate with its present operations.

6. RISKS AND CONCERNS

The Company is exposed to various risks arising from its business activities and the external business environment. The Management continuously evaluates these risks and takes appropriate measures to mitigate their potential impact.

Business and Market Risk

Changes in economic conditions, customer spending patterns and outsourcing requirements may affect demand for the Companys services.

Competition Risk

The BPO industry is competitive and the Company may face pricing pressure and competition from established and emerging service providers.

Human Resource Risk

The Companys BPO operations are dependent upon the availability, skill and retention of employees. High attrition or difficulty in recruiting skilled personnel may impact service delivery and operating costs.

Technology and Cybersecurity Risk

The Companys operations depend significantly on information technology and communication infrastructure. Cybersecurity incidents, system failures, data breaches or technology disruptions may affect business continuity and customer relationships.

Data Privacy and Confidentiality Risk

The Companys operations involve handling customer and business information. Any failure to maintain appropriate confidentiality or data security could adversely affect the Companys reputation and business.

Customer Concentration Risk

Where a significant portion of business is derived from certain customers, any reduction in business volumes, termination or non-renewal of contracts may affect revenues and profitability.

Regulatory Risk

Changes in applicable laws, taxation requirements, employment regulations, data protection requirements and other regulatory requirements may increase compliance costs or affect operations.

Operational Risk

Disruption in communication systems, technology infrastructure, manpower availability or other critical resources may affect the Companys ability to deliver services.

FMCG Trading Risk

The Companys FMCG and staple trading business is exposed to fluctuations in commodity prices, procurement costs, availability of products, logistics costs and changes in demand. The Company seeks to mitigate these risks through appropriate internal controls, operational monitoring, employee training, technology measures, diversification of customers and industries, and regular review by the Management.

7. HUMAN RESOURCES

Human resources constitute a critical component of the Companys business, particularly considering the people-intensive nature of BPO and customer support operations.

The Company believes that skilled, trained and motivated employees are essential for maintaining service quality, meeting customer expectations and achieving sustainable growth.

The Company focuses on employee recruitment, training, skill development, performance monitoring and retention. Training initiatives are aimed at improving functional capabilities, communication skills, customer handling and other competencies relevant to the Companys service requirements.

The Company also provides support to resources deployed for its clients and undertakes activities relating to employee management, training, performance review and attrition management as part of its payroll management and related services.

Going forward, the Company intends to continue strengthening its human resource capabilities in line with the evolving requirements of its business and the increasing adoption of technology-enabled processes. The Management believes that a strong and capable workforce will remain an important competitive advantage for the Company.

8. CAUTIONARY STATEMENT

This Management Discussion and Analysis Report contains statements that may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions, expectations and estimates concerning future events and business conditions.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic conditions, market demand, competition, customer requirements, technological developments, employee availability and attrition, regulatory changes, cybersecurity risks, pricing pressures and other risks and uncertainties that may affect the Companys operations. The Company assumes no responsibility for updating or revising any forward-looking statements, whether as a result of future events, new information or otherwise, except as may be required under applicable laws and regulations. The readers are therefore cautioned not to place undue reliance on such forward-looking statements.

Financial performance

(In Lakhs)

Particulars	2025-26	2024-25
Revenue from operations	16,016.37	13,811.95
Other income	40.66	41.68
Total income	16,057.03	13,853.63
Total expenditure	14,754.85	12,668.95
Profit before tax (before exceptional item)	1,302.18	1,184.68
Exceptional item	-	-
Profit After tax for the year (PAT)	951.19	853.55

Key Financial Ratios

Particulars	2025-26	2024-25
Return on Equity (%)	5.59	7.14
Trade Receivables Turnover Ratio (in times)	2.31	2.72
Trade payables Turnover Ratio (in times)	28.02	10.11
Net Capital Turnover Ratio (in times)	2.19	4.20
Current Ratio (In times)	7.61	2.52
Debt Equity Ratio (in times)	0.05	0.17
Net profit Ratio (%)	5.94	6.18
Return on Capital Employed (%)	8.55	10.61
Return on Investment (%)	N/A	N/A

Details pertaining to Net-worth of the Company

(In Lakhs)

Particulars	2025-26	2024-25
Net-worth	20,556.56	13,505.69

For and on behalf of Board of Directors

NSB BPO Solutions Limited

Sd/-

Vikrant Singhal

DIN: 02171429

Managing Director

Sd/-

Rajiv Kumar Puri

DIN: 02462282

Whole Time Director

Date: 02.09.2026

Place: Bhopal