OnMobile Global Ltd Management Discussions

MARKET OVERVIEW

OnMobiles story in the telecom and digital lifestyle services industry spans 25 years, beginning in 2001 with our first customer, Orange India (now Vodafone Idea), and our first product, the Voice Portal. Over two decades, we pioneered Ringback Tones, scaled Video and Contest services, and have now built a strong subscriber base of over 70 million across 67 operators in 41 countries and have accumulated consumer and telco insights that funded our strategic pivot into gaming in 2021. Through 2G, 3G, 4G, 5G, and now AI, OnMobile has evolved with the ecosystem. Today, we are a diversified digital lifestyle platform spanning gaming, enterprise communications, and mobile entertainment.

The global gaming market stands at approximately USD 242 billion and is expected to reach USD 400 billion. Our gaming products, ONMO and Challenges Arena, serve the casual, socially connected mobile gamers. The Gaming Platform takes this further, unifying casual games, cloud streaming, entertainment, and esports under the telco operators own brand. For operators, it is a digital ecosystem tool that goes well beyond a games aggregator, enabling gamification, cross-selling, and subscriber lifecycle management. As gaming becomes a primary entertainment destination for Gen Z and beyond, telcos are uniquely positioned to monetise the low-latency 5G infrastructure they have already built.

Enterprise communication is shifting structurally from oneway SMS to AI-powered, rich, omnichannel engagement. According to the CPaaS Market report from Fortune Business Insights, the global CPaaS market was valued at USD 23.19 billion in 2025 and is projected to reach USD 215.36 billion by 2034, at a CAGR of 28.10%. AI-driven automation, omnichannel analytics, and the demand for scalable engagement tools are reshaping what enterprises expect from their communication platforms. OnMobiles Buzzmo is built for this environment, an AI-powered enterprise platform that now aims to serve telcos and BFSI customers across Africa and Asia, where digital customer onboarding, financial inclusion, and scaled engagement are all converging into a single commercial opportunity.

Our portfolio of Ringback Tones, video content, sports entertainment, and kids portals has sustained millions of subscribers through our telco partner network. The global Ringback Tones market, valued at USD 4.84 billion in 2024, is projected to reach USD 6.67 billion by 2030, at a CAGR of 4.2%, according to Virtue Market Researchs Ringback Tones Market Research Report.

Many African markets, including Ethiopia, offer meaningful potential for first-time adoption, and bundling entertainment services with gaming strengthens the overall digital lifestyle proposition for operators.

Across our key markets in Africa, Asia, and Latin America, macroeconomic conditions are supportive, increasing smartphone penetration, expanding financial inclusion, and accelerating 5G rollouts are broadening the addressable base for OnMobiles full portfolio. What unites these opportunities is the principle that has guided OnMobile for 25 years: the mobile phone, powered by the right platform and the right telco partnerships, remains the most powerful channel in the world for reaching and engaging consumers at scale.

OPPORTUNITIES

OnMobiles gaming opportunity is distinctive because we can now address the entire gaming market, which is split nearly evenly between mobile gaming and console & PC gaming. ONMO and Challenges Arena serve the casual mobile gamer, already a large and proven revenue base across 55 countries. The Gaming Platform extends this into a broader operator ecosystem play, driving gamification, cross-selling, and subscriber retention. According to Research and Markets Global Gaming Market Outlook 2030, the global cloud gaming market is projected to reach USD 31.37 billion by 2030 at a 46.8% CAGR. OnMobiles upcoming Virtual Console delivers console-quality gaming at accessible price points backed by our ONMO streaming patents, including AI-driven streaming and snackable moments gaming, and built around a frictionless, one- touch play experience. With the virtual console, we can now target the single biggest barrier to mass adoption: the need for expensive hardware. By bundling operator plans at accessible price points and delivering through direct-to- customer channels, we can genuinely democratise premium gaming. Our operator relationships, averaging over a decade in length across 67 operators, give us deployment speed and distribution reach that are very difficult to replicate from scratch. Beyond telcos, the Virtual Console also opens OnMobile to entirely new distribution channels, e-commerce platforms, retail, broadband providers, and TV operators; markets and partners we have never historically addressed. This multi-channel reach significantly expands the addressable opportunity and marks a deliberate step in OnMobiles evolution from a telco-only distribution model to a broader consumer platform.

Buzzmo addresses one of enterprise technologys fastest- growing segments. The shift from SMS to RCS, AI-driven automation, and omnichannel demand are intensifying in tandem. Our telco-integrated distribution model gives us access to enterprise deployments that flow through operator channels, a path most standalone CPaaS providers lack. The immediate opportunity lies in BFSI across Africa and Asia, where digital onboarding, transaction alerts, and customer engagement are moving in a digital-first direction. AI runs through Buzzmo at the platform level: personalising communication flows, analysing engagement data, and delivering the ROI analytics that enterprise customers need.

Within the entertainment portfolio, the opportunity lies in personalisation. AI-driven content recommendations are increasing engagement and reducing churn. First-time adoption markets, particularly in Africa, remain a genuine growth frontier as smartphone penetration rises and operator distribution deepens.

The global MVAS market grew to USD 1.06 trillion in 2025 and is projected to reach USD 1.89 trillion by 2029 at a CAGR of 15.4%, according to Research and Markets - Mobile Value Added Services Market Report 2025. This growth is driven by increasing mobile consumption and the expansion of subscription-based digital services. Within this context, editorial and news subscriptions represent an attractive vertical, supported by growing demand for trusted premium content and seamless carrier billing through mobile operators. The Company is actively expanding in this segment with its latest product, Kiosko, while also positioning itself to capture growth in video subscriptions, a market expected to reach USD 237.4 billion by 2030 according to Strategic Market Research.

THREATS

The most fundamental threat in digital lifestyle services is the consumers attention span. Our platforms compete not just with other games but with social media, short-form video, OTT platforms, and messaging apps, all vying for a fixed daily time budget. Remaining competitive demands relentless innovation, continuous content refreshes, and platform improvements to combat user fatigue. Free-to- access models erode willingness to pay even as production costs rise. For cloud gaming specifically, rising GPU and memory chip costs, driven by demand for AI infrastructure, are creating potential supply constraints. Network limitations in Tier 2 cities and rural emerging markets remain a challenge, as do tightening data privacy regulations that constrain personalisation across our 69 markets.

Enterprise communication is a mature industry with entrenched incumbents, large traffic aggregators and CPaaS platforms that compete aggressively on price and scale. OnMobiles differentiation lies in our AI layer, telco- integrated delivery, and focus on emerging markets, but protecting share against well-capitalised competitors is a sustained effort. Telco partners may also unilaterally adjust commercial arrangements, affecting revenue economics and deployment timelines.

Our traditional entertainment services face structural headwinds. OTT calling and music streaming are reducing the relevance of Ringback Tones in developed markets, and consumer preferences are shifting towards on-demand, self-directed content. Managing this transition, sustaining near-term revenue while rebalancing the portfolio, requires careful commercial and product discipline. Content licensing arrangements remain subject to unilateral partner changes that can affect margins.

RISKS & CONCERNS

OnMobiles operations across 69 countries carry regulatory, technological, operational, and macroeconomic risks that require constant management. Geopolitically, the global environment remains unsettled. The trajectory of ongoing conflicts and their economic consequences remains uncertain, affecting inflation, supply chain disruption, and commodity cost pressures.

Revenue vulnerability persists as consumption patterns shift and telco bundle structures evolve. Reduced chargeability for standalone services, OTT substitution of traditional voice products, and the complexity of managing multiple revenue streams across gaming, enterprise, and entertainment all require disciplined commercial execution. Dependence on telco partners, while a competitive strength, also exposes the business to unilateral commercial changes. Rising customer acquisition costs, driven by attention fragmentation and tighter digital marketing regulation, further pressure discretionary entertainment spending. Currency volatility across 69 operating countries adds further unpredictability to earnings.

Global frameworks governing AI, data privacy, enterprise messaging, and digital payments are tightening, and enforcement actions in key markets could disrupt monetisation or delay deployments. Billing transparency, particularly regarding subscription confirmations and auto-renewals, remains a focus given its direct impact on consumer trust and brand equity.

Twenty-five years of navigating technology waves, from 2G to AI, have given OnMobile an advantage that cannot be built quickly: deep operator trust, the capacity to adapt ahead of the curve, and an institutional understanding of how digital services scale across telco ecosystems. Our Virtual Console is the clearest expression of that instinct today, built on the belief that cloud gamings mainstream moment is now. Backed by disciplined execution and longstanding telco relationships, OnMobile enters its next chapter across Gaming, Enterprise Communications, and Mobile Entertainment, from a position of experience, conviction, and readiness.

PRODUCT-WISE PERFORMANCE

ONMO

ONMO delivered a strong operating performance during the year, with its subscriber base growing by over 37% from 4 million in FY25 to 5.5 million in FY26. The platforms growing appeal was supported by a catalogue of 67 games available in 18 languages, enabling broader reach across diverse geographies and user segments.

ONMO continued to strengthen player engagement through features such as gameplay streaming, Co-play, Reactions, Profiles, Stats, Achievements, Levels, Daily Streaks, Leaderboards, Friends & Following, and Avatar customisation. Going forward, the focus remains on expanding the premium gaming catalogue and enhancing player engagement through differentiated gaming experiences.

Challenges Arena

Challenges Arena delivered strong momentum, with its subscriber base growing by over 29% from 6.6 million in FY25 to 8.5 million. The platform continued to benefit from strong user acquisition and engagement, supported by its rewards-led participation model and its focus on high- retention gameplay experiences.

User engagement remained strong during the year, with players spending over 4.3 million hours on the platform. Existing engagement features and customised campaign models continued to support participation and retention. Available in 25 languages, Challenges Arena delivers a simple, rewarding, and engaging gaming experience across diverse user segments and markets.

The Gaming & Entertainment Platform

The Gaming & Entertainment Platform serves as a unified entertainment and discovery layer for telecom operators, enabling seamless access to gaming and digital entertainment services through a single destination. As one of the first platforms of its kind in the telecom ecosystem, it empowers telco partners to create a diversified channel for customer engagement and revenue generation, offering a competitive alternative to traditional app-based gaming destinations.

With three additional opportunities currently in the advanced stages of closure, TGEP is well-positioned to further expand its operator footprint in FY27.

Tones

During FY2025-26, the Tones business continued to focus on technology innovation, platform modernisation, and market expansion. Leveraging decades of campaign data, AI/ML models were developed to optimise subscriber acquisition by identifying the most effective channel, timing, and plan for individual users. In Q4 FY26, an AI- powered outbound dial campaign launched with a leading operator in Bangladesh delivered a 200% improvement in call answer rates.

Development of a next-generation cloud-native CRBT platform was initiated during the year to provide greater scalability, operational efficiency, and carrier-grade performance. The first production deployment of the new platform is scheduled for Q2 FY27.

Videos & Infotainment

The Videos and Infotainment business focused on enhancing customer journeys, content operations, and data-driven decision-making during the year. Platform usability was improved through optimised subscription journeys, pricing transparency, and streamlining onboarding flows, contributing to stronger engagement metrics and content consumption trends across supported markets.

We also strengthened long-term business continuity by renewing the Emocion contract with an automatic renewal clause. AI-driven content automation was implemented to improve curation efficiency and reduce operational overheads. Integration of GA4, Power BI, and automated SQL/BigQuery workflows further strengthened analytics and business intelligence capabilities across the infotainment portfolio.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal control and risk management are necessary prerequisites of corporate governance. The Corporate Governance Policy guides the conduct of affairs of the Company and clearly delineates the roles, responsibilities and authorities at each level with an adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. Properly documented policies, guidelines and procedures laid down for this purpose stand widely communicated across the enterprise to provide the foundation for Internal Financial Controls with reference to the Companys operations and financial statements. Such Financial Statements are prepared on the basis of Significant Accounting Policies, in line with the applicable Accounting Standards, that are reviewed by management and approved by the Audit Committee and the Board.

The Company recognizes that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audit and review processes ensure that such systems are reinforced on an ongoing basis.

The Company has a set of Standard Operating Procedures (SOPs) that have been established for individual processes. In addition to this, the Company has identified and documented the risks and control for each process that has a relationship to the operations and financial reporting. The Company uses SAP and other internally developed ERP systems as a business enabler and also to maintain its Books of Account. The SOPs in tandem with transactional controls built into the ERP systems ensure appropriate segregation of duties, approval mechanisms and maintenance of supporting records. The Information Management Policy reinforces the control environment. The systems, SOPs and controls are reviewed by the management and audited by Internal Auditors whose findings and recommendations are reviewed by the Audit Committee and tracked through implementation. The Company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been assessed during the year, taking into consideration the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India. Based on the results of such assessment carried out by management, no reportable material weakness or significant deficiencies in the design or operation of internal financial controls were observed.

DISCUSSION ON CONSOLIDATED FINANCIAL PERFORMANCE FOR THE YEAR ENDED 2025-26

The consolidated financial statements relate to OnMobile Global Limited, referred to as "the Company", and its subsidiaries and associates together referred to as "the Group".

RESULT OF OPERATIONS

(In Million except EPS)

	FY 2025-26	% of total revenue	FY 2024-25	% of total revenue	Growth %
Results from operations
Mobile Entertainment Services	5,168.50	90.39	5,730.24	99.09	-10%
Other Income	549.32	9.61	52.69	0.91	943%
Total Income	5,717.82		5,782.93		-1%
Content fees and royalty	2,295.48	40.15	2,258.42	39.05	2%
Contest expenses	31.27	0.55	25.90	0.45	21%
Cost of software licenses and others	157.12	2.75	814.52	14.08	-81%
Employee benefits expenses	1,116.88	19.53	1,184.29	20.47	-6%
Finance costs	69.77	1.22	60.86	1.05	15%
Depreciation and amortisation expenses	350.22	6.13	323.19	5.59	8%
Other expenses	1,780.32	31.14	1,340.13	23.17	33%
Total Expenses	5,801.06	101.46	6,007.31	103.88	-3%
Profit before share of loss of associates, exceptional items and tax	-83.24	-1.46	-224.38	-3.89	-63%
Share of loss of associates	-0.03	0.00	-0.05	-0.001	-30%
Profit before exceptional items and tax	-83.27	-1.46	-224.43	-3.88	-63%
Exceptional items	-4.61	-0.08	-122.52	-2.11
Profit before tax	-87.88	-1.54	-346.95	-6.00	-75%
Provision for taxation	26.98	0.47	58.46	1.01	-54%
Profit for the year	-114.86	-1.07	-405.41	-7.01	-72%
Profit/(Loss) attributable to Shareholders of the Company	-114.86	-1.07	-405.41	-7.01	-72%
Other Comprehensive Income (Net)	101.44	1.78	70.03	1.22	45%
Total Comprehensive income (loss) attributable to the Owners of the Company	-13.42	0.71	-335.38	-5.80	-96%
EPS- Basic	-1.07	-3.78		-72%
EPS -Diluted	-1.07	-3.78		-72%

Revenue

Revenue is derived from Mobile Entertainment Services, including Ring Back tones, Mobile entertainment and other services. Revenue from Mobile Entertainment Services is recognized on providing the services in terms of revenue-sharing arrangements with the telecom operators. Revenue from Other Services including maintenance services are recognized proportionately over the period during which the services are rendered as per the terms of the contract.

The revenue for FY 2025-26 was 5,168.50 Million as against 5,730.24 Million in FY 2024-25, with a decrease of 10%. Domestic revenues registered a de-growth of 57%, whereas revenue outside India also declined by 8%.

The segmentation of revenue by geography is as follows:

(In Rs. Million)

	FY 2025-26	% of total Revenues	FY 2024-25	% of total Revenues	Growth %
India	106.20	2	248.69	4	-57%
Outside India	5,062.30	98	5,481.55	96	-8%
Total Revenue	5,168.50	100	5,730.24	100

Other Income

Other Income was 338.77 Million in the FY 2025-26 as compared to 52.69 Million in FY 2024-25 . FY 2025-26 includes 238.33 Million for interest earned on fixed deposits and interest on income tax refund, profit from sale of fixed assets of 2.69 Million and dividend yield for mutual funds for FY 2024-25. For FY 2024-25, same value was 15.50 Million. Other Income does not includes net gain on foreign currency transactions and translations for FY 2025-26. For the current year, gain on foreign currency transactions and translations is 198.27 Million.

The surplus funds of the Group continue to remain mainly invested in bank fixed deposits and debt funds in adherence to the Groups investment policy.

Cost of Sales and Services

Cost of Sales and Services consists of amount incurred towards content fee and contest expenses, cost of software licenses and other charges. Content fee is paid to content providers such as music label companies, royalty agencies, sports licensing authorities, games publishers, and other content licensors from whom the Company procures content. Cost of software licenses and other charges include the cost of software licenses and services used by the Company for providing services to the customers. During FY 2025-26, the cost of sales and services was 2,484.03 Million as against 3,098.84 Million incurred in FY 2024-25.

(In Rs. Million)

	FY 2025-26	% of total revenue	FY 2024-25	% of total revenue	Growth %
Content fee	2,295.48	40.15	2,258.42	39.05	2%
Contest expenses, cost of software licenses and others	188.39	3.29	840.42	14.53	-78%
Cost of Sales and Services	2,483.87	43.44	3,098.84	53.58	-20%

Employee Benefits Expense

Employee Benefits Expense comprise salaries paid to employees, contributions made to various employee welfare funds and expenses incurred towards welfare of the employees.

During the FY 2025-26, the Group incurred a cost of 1,116.88 Million as against 1,184.30 Million in FY 2024-25, thus representing a decrease of 6% from the previous year.

The total employee strength of OnMobile Global Limited and its subsidiaries as on March 31, 2026, was 307.

Finance Charges

Finance Charges represent interest on finance Lease Liabilities. During FY 2025-26, the finance charges include interest on short term borrowings other than finance lease of 69.77 Million against 60.86 Million for previous year.

Depreciation and Amortization

The Group provided a sum of 350.22 Million and 323.19 Million towards Depreciation and Amortization for the FY 2025-26 and FY 2024-25, respectively, thus representing an increase of 8% over the previous year.

Depreciation and Amortization on assets are provided on a monthly basis using the straight-line method based on useful/commercial lives of these assets as estimated by the Management, other than for market development and deployment rights, which is amortized over its useful/ commercial life in time proportion of its economic benefits, that are expected to accrue to the Company. The amortization method is reviewed at each year-end for any significant change in the expected pattern of the economic benefits. Expenditure incurred on research and development is not being capitalized.

Other Expenses

In the FY 2025-26, Other Expenses increased by 32% to 1,768.06 Million as against 1,340.13 Million incurred in FY 202425. The break-up of the expenses is as follows:

(In Rs. Million)

	FY 2025-26	% of total revenue	FY 2024-25	% of total revenue	Growth %
Legal, professional & consultancy charges (including Remuneration to Auditors)	162.66	3.15	203.03	3.54	-20%
Marketing Expenses	897.98	17.37	911.94	15.91	-2%
Rent and other facilities cost	47.75	0.92	43.18	0.75	0.11%
Travelling and Conveyance	45.92	0.89	38.65	0.67	0.19%
Communication charges	19.06	0.37	22.78	0.39	-16%
Rates and taxes	9.60	0.19	13.13	0.22	-27%
Others	597.36	11.56	107.42	1.87	456%
Total	1,780.32	34.45	1,340.13	23.35	421%

Exceptional Items

Exceptional item in FY 2025-26 is (4.61) Million and (122.52) Million for FY 2024-25.

Share of Loss from Associates

Share of Profit / (Loss) of Associates in FY 2025-26 is (0.03) Million and (0.05) Million for FY 2024-25. Share of loss from Associates refers to loss from Mobile voice connect.

Profit Before Tax

The Profit/(Loss) before Tax of (87.88) Million in the current FY 2025-26, as compared to (346.95) Million during the previous year.

Provision for Taxation

The amount provided for taxation in the current FY 2025-26 is 26.98 Million as against 58.46 Million for FY 2024-25.

Other Comprehensive Income

Other Comprehensive income for the year 2025-26 includes a profit of 98.60 Million on account of exchange differences in translating the financial statements of foreign operations and a loss of 4.01 Million due to re-measurements of defined benefit liabilities. Other Comprehensive income /(loss) was 101.44 Million in FY 2025-26 compared to 70.03 Million in FY 2024-25.

Total Comprehensive Income for the Year

The Total Comprehensive Loss is (13.42) Million in the current FY 2025-26, compared to (335.38) Million during the previous FY 2024-25

FINANCIAL CONDITION Non-Current Assets

Property, Plant and Equipment, Capital Work-in-Progress and Intangible Assets

The Company incurred an amount of 19.73 Million in Capex for FY2025-26.

Intangible Asset under Development

Intangible asset under Development refers to the capitalization of Research and Development costs for the new Game Streaming Platform, and Intangible asset under Development in FY2025-26 is Nil.

Balance as on March 31, 2025 is 106.68 Million.

Right to Use Assets

Right to use Assets refers to Financial Lease obligation accounted under Ind AS 116. Right to use Assets as on March 31, 2026, are 104.65 Million as compared to 24.07 Million as on March 31, 2025.

Non-Current Financial Assets

Non-current Financial Assets include Investments, Loans and Other Financial Assets. Non-Current Financial Assets as on March 31, 2026 are 716.52 Million as compared to 700.77 Million as on March 31, 2025, representing a increase of 15.75 Million.

Other Non-Current Assets

Other Non-Current Assets as on March 31, 2026, are 2,177.90 Million as compared to 2,220.20 Million as on March 31, 2025, representing a decrease of 42.30 Million compared to the previous year.

Current Assets Current Investments

Current Investments as on March 31, 2026, and March 31, 2025 was NIL.

Trade Receivables

The Trade Receivables (net of Provision for Doubtful Trade Receivables) amount to 1,914.12 Million as on March 31, 2026, as against 1,908.14 Million as on March 31, 2025.

Cash and Cash Equivalents

Cash and cash equivalents as on March 31, 2026, is 1,420.34 Million as against a balance of 399.56 Million as on March 31, 2025.

Investment in Associates

Investment in Associates as on March 31, 2026, and as on March 31, 2025, is NIL

Other Financial Assets

The Other financial assets as on March 31, 2026, is 30.14 Million as compared to 63.04 Million as on March 31, 2025, representing a decrease of 32.90 Million.

Other Current Assets

Other current assets as on March 31, 2026, is 517.03 Million as compared to 486.43 Million outstanding as on March 31, 2025, representing an increase of 30.61 Million.

Equity and Liabilities

Equity

Equity Share Capital

The Authorized Share Capital of the Group is 1,500 Million comprising 149,500,000 equity shares of 10/-each and 500,000 preference shares of 10/- each.

As at March 31, 2026, the Group has equity of 106,321,351 shares of 10/- each as Issued, Subscribed and Paid-up Capital which was 106,321,351 shares at March 31, 2025.

Other Equity

A summary of the Other Equity is given below:

( Millions)

	As at March 31, 2026	As at March 31, 2025
Capital Redemption Reserve	176.48	176.48
Securities premium	2,450.01	2,450.01
Stock Options outstanding	119.88	90.69
General Reserve	133.84	133.84
Foreign Currency Translation Reserve	90.52	-8.08
Retained Earnings	2,069.50	2,182.18
Other items of Other Comprehensive Income	142.00	139.16
Non-Controlling Interest	9.57	11.75
Total	5,191.80	5,176.03

Foreign Currency Translation Reserve comprises the exchange difference relating to the translation of the financial results and net assets of the Companys foreign operations from their respective functional currencies to the Companys presentation currency.

The surplus retained in the Statement of Profit and Loss as at March 31, 2026, is 2,069.50 Million.

The total Net Worth of the Group as at March 31, 2026, is 6,255.01 Million, with the book value of each share being 58.84 (Face value of 10/- each). The corresponding numbers for the previous FY are 6,239.24 Million and 58.68 respectively

Liabilities

Non-Current Liabilities Lease Liabilities

The Lease liabilities outstanding as on March 31, 2026, are 67.97 Million as compared to 5.58 Million as on March 31, 2025. This represents Long term maturities of Finance Lease obligation as per Ind AS Accounting of Leases.

Other Financial Liabilities

The Long-term liabilities outstanding as on March 31, 2026, and as on March 31, 2025, are NIL.

Long-term Provisions

The Long-term Provisions outstanding as on March 31, 2026, are 117.78 Million as compared to 104.87 Million as on March 31, 2025, thus representing an increase of 12.91 Million. The increase is primarily on account of the provision for leave encashment.

Deferred Tax Liability

Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between carrying values of the assets and liabilities and their respective tax bases and are measured using enacted tax rates applicable on the Balance Sheet date. Deferred Tax Assets are recognized subject to managements judgment that realization is virtually certain. The Deferred Tax Liability (net) represents the deferred tax liability of the Group and as on March 31, 2026, is 10.07 Million as compared to 8.89 Million as on March 31, 2025.

Current Liabilities

The Current Liabilities outstanding as on March 31, 2026 are 3,358.02 Million as compared to 2,345.24 Million as on March 31, 2025.

Ratios

	As at March 31, 2026	As at March 31, 2025
Debtor Turnover (times)	2.70	3.47
Inventory Turnover	NA	NA
Interest Coverage Ratio	NA	NA
Trade payables turnover ratio (times)	1.29	1.86
Current Ratio	1.16	1.22
Debt Equity Ratio	0.11	0.07
Operating Profit Margin (%)	0.35	(4.99)
Net Profit Margin (%)	(2.22)	(7.07)
Return on Capital employed (%)	(0.26)	(4.22)
Return on Equity Ratio (%)	(1.84)	(6.37)

Debtors turnover ratio as on March 31, 2026, is 2.70 vs 3.47as on March 31, 2025. Current ratio, as on March 31, 2026, is

1.16 vs 1.22 as of March 31, 2025. Operating profit margin % in the current year March 2026, is at 0.35 % as compared to 4.99 % in the last year.Net profit margin % in the current year March 2026, is at -2.22 % as compared to -7.07% in the last year. Net profit has increased from (405.41) Miilion to (115.05) Million (290.36 Million) on a consolidated basis mainly due to decrease in cost of software licenses and others expense from 814.52 Mn in FY25 to 157.12 Mn in FY26. Return on Equity % in the current year March 2026, is at -1.84% as compared to -6.37 % in the last year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Talent Acquisition

The year 2025-26 continued to reflect evolving hiring dynamics shaped by global economic uncertainties, cost optimization priorities, and rapid advancements in artificial intelligence and automation. Across the IT and services sector, organizations increasingly moved from volume- based hiring to a skills-focused approach, with emphasis on niche capabilities such as AI, cloud, and cybersecurity. Hiring strategies became more calibrated, with greater focus on critical roles, internal talent optimization, and productivity enhancement.

Attrition trends across the industry showed signs of stabilization, ranging between 15% and 18%, driven by stronger employee engagement, internal mobility, and structured compensation practices.

In alignment with these trends, OnMobile reported an attrition rate of 18.21% in FY 2025-26, reflecting stable workforce retention in a competitive environment. The organization continued to focus on critical and emerging technology roles, ensuring a sustainable talent pipeline.

The company maintained an offer acceptance ratio of over 90%, reflecting strong candidate engagement and a compelling employer value proposition. A substantial share of hiring was driven through employee referrals, internal mobility, and selective outsourcing, supporting a cost- efficient and aligned sourcing strategy in a moderated hiring environment.

Looking ahead, OnMobile aims to further strengthen its talent acquisition strategy through digital and data-driven hiring, enhanced employer branding, and competitive compensation structures. The focus remains on building a resilient, agile, and future-ready workforce aligned with evolving business needs.

Talent Management & Employee Engagement

In addition to delivering learning interventions aligned with business requirements, the organization continued to focus on strengthening both technical and functional capabilities across teams. During the year, key organization-wide technical trainings such as OM Cyber Training and OM Data Privacy were conducted, covering 356 and 364 employees respectively. These initiatives contributed significantly to overall learning hours while reinforcing awareness around cybersecurity and data protection practices. A targeted intervention on Secure Software Development Life Cycle was also conducted for the Technology Team in India, covering 99 employees to enhance secure development practices.

A quick summary of the interventions for this year is given below -

Type of Intervention	Trainings	Target Audience	No. of employees covered	Total person- hours	Total person days*
Technical	OM Cyber Training	Across Org	356	356	44.5
	OM Data Privacy	Across Org	364	364	45.5
	Secure Software Development Life Cycle	Technology Team -India	99	3	2
Subscription	Platform with extended offer of online courses	4 people- technical team mainly	4	8	1
Presential	Abacus.ia training	18	18	4	2.25
Presential + online	Master in Advanced IA	1	1	419	52.3
Presential	Sales Update + IA (Europe Sales and Marketing team)	15	13	12	1.8
Online	Sales Update + IA (Latam)	9	6	7.5	1.1
Total			861	1173.5	150.45

*One - person day = 8 hrs of training

To support continuous and flexible learning, access to a subscription-based online learning platform with extended course offerings was provided, primarily benefiting the technical team. In addition, advanced learning interventions such as Abacus.ai training and Master in Advanced AI enabled employees to build deeper expertise in emerging technologies. Notably, the Masters in Advanced AI program contributed significantly to the overall learning hours and days.

Overall, as reflected in the table above, a total of 861 employee participations (non-unique) were recorded across all interventions. These initiatives accounted for 1,173.5 total person-hours and 150.45 person-days, demonstrating the organizations continued investment in employee development. The interventions were delivered across geographies, ensuring a consistent and inclusive approach to learning and capability building across the organization.

During FY 2025-26, we continued to drive employee engagement through a range of inclusive and high-energy initiatives that strengthened our workplace culture. Building on previous successes, Shuttle Smash 2025 saw enthusiastic participation from over 70 employees, promoting fitness and team spirit. We also introduced engaging activities like Mind Maze and Guess It, Miss It, which encouraged collaboration, quick thinking, and fun at work. Festive celebrations such as Diwali and Christmas brought teams together, fostering joy and cultural connection.

R&R continued in the form of monthly recognition as Above & Beyond Awards and quarterly excellence Awards for recognizing accomplishments and contributions as Rockstar and Dynamos. These initiatives significantly contributed to employee well-being, stronger team bonding, and a vibrant, inclusive workplace reflecting our continued commitment to enhancing the overall employee experience.

Compensation & Benefits Benchmarking

During the year, the Company undertook a comprehensive Salary and Benefits Benchmarking exercise across its India and global workforce in partnership with AON, a leading human capital consulting firm. The assessment covered compensation structures, employee benefits, and overall reward practices across all operating geographies.

The insights from this exercise have enabled the Company to validate its compensation philosophy and ensure that employee rewards continue to support business growth, talent retention, and long-term employee engagement while remaining aligned with market best practices.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the industrys projections and estimates (which are based on reliable third-party sources) as well as Companys objectives, estimates, projections and expectations may be "forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws and other factors such as litigation and labour relations.