Oracle Financial Services Software Ltd Management Discussions

of financial condition and results of operation

Technology trends in the financial services industry and outlook

The financial services industry is entering a new phase of technology transformation in which AI-first,cloud-native, and composable architectures are becoming central to how institutions compete, and serve customers. Banks are moving toward intelligent, event-driven operating models that embed personalization, automation, and adaptive decisioning across business processes. Generative AI and agentic ecosystems are expected to reshape customer engagement, and transform the internal processes, especially in high impact areas such as lending, payments, treasury, cash management, financial crime compliance, stress testing, and other regulated workflows. As adoption scales, access to hyperscale AI compute capacity, secure data infrastructure, model orchestration, vector and feature stores, and enterprise-grade AI governance will become increasingly important. At the same time, regulatory requirements around transparency, security, entitlement controls, human oversight, monitoring, and operational data residency/privacy are likely to intensify.

The outlook for the industry is one of progressive modernization, with institutions seeking to balance innovation, efficiency, and customer value with strong controls, compliance, and trust.

Modernizing toward AI-first banking platforms

Oracle Financial Services is advancing a progressive transformation strategy that helps financial institutions evolve from legacy and service-oriented technology environments toward AI-first, cloud-native, banking platforms. The industry is transitioning to platforms in which adaptive intelligence, personalization, secure event-driven processing, human-in-the-loop governance, and composable business services become foundational to modern banking operations. This progressive transformation strategy helps banks modernizing at a pace that suits their business priorities, while introducing componentized business services and AI models across the banking enterprise.

Agentic AI architecture for intelligent financial services

Oracle Financial Services AI-first blueprint includes a structured agentic ecosystem which extract, synthesize, and summarize information and execute lifecycle workflows and help in complex decisioning. It is designed around integrated layers, which support customer and user experience across multiple channels and perform specialized banking functions. The agentic layers ensure that processes are orchestrated efficiently and integrate with other agents in a controlled manner, and the data easily with strict access controls. The blueprint helps several use cases that add competitive edge, such as predictive spending patterns, cash-flow forecasts, cross sell recommendations, personalizing user experience, etc.

Embedded governance, compliance and risk controls

Oracle Financial Services AI-first approach embeds governance, compliance, security, and operational controls into the architecture for intelligent banking. The control layer includes various key aspects like entitlements, trust, governance, compliance, guardrails, policy, security, fleet health, incident management, and monitoring. Human-in-the-loop governance remains a core design principle, helping financial institutions maintain oversight as AI capabilities become more deeply embedded in business processes. AI-enabled regulatory and risk workflows can help financial institutions improve consistency, speed, and transparency in a controlled environment. In stress testing, a multi-agent process can configure portfolios, select metrics, identify models, define stressed variables, build scenarios, create orchestration pipelines, execute stress runs, and share decision insights. In financial crime investigations, AI agents can assimilate alerts, gather and evaluate evidence, review prior history, classify activity, generate investigation narratives, and route outcomes to human quality control for review, edits, or rework. As AI becomes embedded across financial institutions, Oracle Financial Services hyperscale operating architecture is important as banks deploy multi-agent systems that coordinate across data, documents, systems of record, and business processes.

Business Overview

Oracle Financial Services Software Limited is a global leader in providing world class application software products and services for the Financial Services Industry. Our solutions empower financial institutions to become more responsive, agile, collaborative, and insightful in their business. The products business is our principal business segment. We provide a comprehensive suite of IT solutions delivering a compelling new age AI infused digital experience to the financial institutions of varying business focus, geographic spread, and scale. Our customers rely on our solutions to modernize their technology platforms, accelerate digitization and deliver superior customer service. Finergy is our services business comprising of consulting services and BPO services focused solely on the financial services industry.

These segments are described in further details below.

Products

We provide a comprehensive suite of cloud-native IT solutions that deliver intelligent, secure, and compelling digital solutions for the financial services industry. Our products span the entire product life cycle including omni-channel self-service, process automation for banker effectiveness and highly performance oriented backend product processing that address the needs of financial institutions.

Our portfolio has two streams, banking solutions and analytical solutions. These are detailed below.

For more information on these solutions, please refer to https://www.oracle.com/financial-services/#bankin-panel

Oracle Banking

Oracle Banking is our transaction banking offering. Over the last several years, we have transformed it into a cloud-native, AI-first architecture with capabilities to infuse Generative AI, Agentic AI, and AI/ML technologies. The suite, unified under Oracle Banking, provides deployment flexibility and helps banks undertake progressive modernization while building seamless digital front ends and comprehensive marketplace capabilities through their banking portals.

Our generative AI use cases help financial institutions reimagine customer and banker experiences through natural-language interactions, contextual insights, intelligent content generation, automated summarization, document understanding, and personalized recommendations. Agentic capabilities support intelligent orchestration across banking processes, enabling experience agents and domain agents to assist with tasks such as smart application capture, product recommendation, cash-flow forecasting, credit decisioning, regulatory compliance monitoring, stress testing, and financial crime investigations.

Our intelligent solutions also integrate voice banking, secure social media interfaces, AI-based anomaly detection, OCR-enabled ingestion of paper-based data, API-based extensibility, human-in-the-loop governance, and secure AI controls that help customers extend functionality without touching the core while maintaining trust, compliance, and operational resilience.

Most of these solutions are available as a Cloud service and can also be deployed on-premise based on the customers preferences. Below describes major elements of Oracle Banking.

Oracle Solutions for Digital Experience

Oracle Banking Digital Experience

Oracle Banking Digital Experience helps banks deliver digital banking experiences with a persona-centric design engineered for intuitive end customer self-service on a secure platform. The solution provides value-driven engagement with retail, corporate, small business, and Islamic ready-to-go embedded banking experiences that are hyper-personalizable, configurable, and embellished with insights derived using generative AI.

Oracle Banking APIs

Oracle Banking APIs is a packaged API solution that can help customers jump-start Open Banking with more than 1,800 ready-to-deploy business and foundational banking APIs. The solution enables banks to comply with Open Banking regulations and accelerate innovation in a new digital ecosystem.

Oracle Solutions for Payments

Oracle Banking Payments

Oracle Banking Payments is a digital payments solution built natively on the ISO 20022 standards framework that enables banks and financial institutions process payments in real time, anywhere, and at scale. The solution help banks stay ahead of the game and optimize transaction efficiency with a one-stop payment processing solution that processes multiple payment types, is constantly updated to reflect scheme rulebooks and guidelines across different markets and payment networks.

Oracle Solutions for Retail Banking Modernization

Oracles retail banking solutions boost customers ability to innovate and respond with speed and agility, deepen loyalty and trust by delivering customer-centric digital banking and operational intelligence across the customer lifecycle.

Oracle offers end-to-end solutions for retail banking both on-premise and on cloud. The product portfolio is dynamic, and new products are introduced and modified based on technology and market needs.

The Oracle retail banking solution suite can cater to the back-office, mid-office, as well as front-office needs of the bank.

Oracle Banking Branch

Oracle Banking Branch helps transform the bank branch from a point of service to a point of sale and advice. This modern solution enables intuitive, intelligent, and automated branch operations and deep insights that empower bankers to shift from transaction-centric interactions to personalized, sales and advice-driven customer engagement.

Oracle Banking Origination

Oracle Banking Origination helps reimagine originations by driving a personalized, consistent, and frictionless experience with the customer at the center. A modern cloud native solution, its intuitive workflows streamlined processes, automated decisioning and pricing help bankers provide tailored onboarding and originations for customers, accounts, deposits, and loans with speed and transparency, delivering instant gratification for customers.

Oracle Banking Collections

Oracle Banking Collections is a unified solution that helps financial institutions improve collections with borrower-centric strategies and optimized operations.

Oracle FLEXCUBE Universal Banking

Oracle FLEXCUBE Universal Banking is a comprehensive core banking solution that enables banks to offer retail banking and corporate banking services that meet evolving customer needs and effectively comply with regulatory guidelines and industry standards. Banks can offer tailor-made accounts, deposits, loans, mortgages, fixed assets, microfinance and financial inclusion products and services and efficiently manage product lifecycles. The solution enables streamlining and automation of core processing and operations.

Oracle Banking Accounts

Oracle Banking Accounts is built on a highly scalable cloud-native architecture to provide a highly concurrent DDA platform that mitigates risk and enhances control. Oracle Banking Accounts is a hyperscale accounts platform that optimizes account management and operations across the banking enterprise. Built on a highly scalable, cloud native architecture, the solution enables highly concurrent transactions to mitigate risk and enhance control. It can be integrated with existing process flows and peripheral systems, allowing banks to re-engineer their banking platform and offer innovative products faster without disrupting their operations.

Oracle Financial Services Lending and Leasing

Oracle Financial Services Lending and Leasing provides end-to-end capabilities from origination into servicing and through collections. It enables lending institutions to address complex and dynamic regulatory and compliance requirements and quick and cost-effective roll out of core business services.

Oracle Banking Retail Lending Servicing

Oracle Banking Retail Lending Servicing is a flexible and scalable retail lending product engine that optimizes loans product management and operations. Built on a cloud native architecture, the solution helps accelerate loan product time to market and facilitates streamlined and risk-aware loan product operations with high operational efficiency.

Oracle Solutions for Corporate Banking Modernization

Oracle solutions for corporate banking modernization help banks and financial institutions service the needs of large and mid-sized corporations. The solutions deliver compelling corporate banking product offerings across various functions, including transaction services, credit and lending, trade and SCF, and treasury management.

Oracle Banking Cash Management

Oracle Banking Cash Management enables banks to help their corporate clients manage their working capital effectively. The solution, based on contemporary technology, empowers bankers and corporates with accurate cash flow forecasting, efficient collections and receivables, and reconciliation of payments.

Oracle Banking Liquidity Management

Oracle Banking Liquidity Management enables banks to run a single centralized, standalone liquidity management solution based on contemporary technology with the ability to support comprehensive liquidity management techniques across geographies, time zones and currencies. The solution enables additional avenues for higher-yield investments and techniques such as pooling, sweeping, and interest optimization.

Oracle Banking Virtual Account Management

Oracle Banking Virtual Accounts Management helps corporate banking clients reconcile their payables, receivables as well as replicate complex accounting hierarchies. This state-of-the-art solution empowers banks to offer future-proof virtual account management solutions, enabling corporate customers to effectively manage complex global account structures, reduce operational overloads and effectively control working capital.

Oracle Banking Accounts

Oracle Banking Accounts is built on a highly scalable cloud-native architecture based on data grid architecture with the industrys highest TPS (Transaction per second) per CPU that scales linearly. Today, this is extremely important for banks, primarily to cater to corporate clients from high-volume industries like e-commerce.

Oracle Banking Corporate Lending

Oracle Banking Corporate Lending enables banks to embrace digital capabilities across credit management, origination and servicing. Banks can efficiently manage complex commercial loan processes, easily structure syndicated loans, and trade loan portfolios while mitigating risks. The solution delivers capabilities such as SOFR (Secured Overnight Financing Rate) interest rate schedules, prepayments, value dated amendments, rate revisions, roll-over and re-pricing for discounted loans. Additionally, the solution has been enriched with syndicated loan capabilities and straight through processing for reversal transactions.

Oracle Banking Corporate Lending Process Management

Oracle Banking Corporate Lending Process Management is built to accelerate the process of origination and servicing of corporate loans, and empower bankers to address the customers financing needs. Its undertake revolving and non-revolving commitments, manual and automated payments, flexible rollover options and multiple types of disbursement facilities. Banks can now easily close loans with an efficient workflow, which ensures that settlements and legal proceeding are undertaken smoothly.

Oracle Banking Enterprise Limits and Collateral Management

Oracle Banking Enterprise Limits and Collateral Management is a centralized limits and collateral tracking solution that enables banks to accelerate credit origination and servicing, prequalify credit lines, track exposures to customers in real time, and mitigate business risks. The solution supports end-to-end lifecycle management and empowers banks with purposeful insights for better decision-making, enables the standardization of processes to enhance distinct operational capabilities, and facilitates real-time collaboration with intelligent automation to improve efficiency.

Oracle Banking Credit Facilities Process Management

Oracle Banking Credit Facilities Process Management is a comprehensive process automation solution that enables banks to accelerate credit origination, pre-qualify a wide variety of credit lines and track exposures to customers in real-time and mitigate business risks, thereby delivering an enhanced customer experience. The solution allows for periodic re-evaluation of collaterals and customers credit worthiness throughout the customer lifecycle. Banks can also proactively track utilizations, collateral leverages, credit and risk scores, and covenants to ensure that customers are meeting compliance requirements.

Oracle Banking Trade Finance

Oracle Banking Trade Finance automates the entire cycle of trade finance transactions and payment processes. A robust regulatory framework helps customers manage compliance to ICC and SWIFT standards and support evolving digital trade documents. The solution supports a diverse range of trade finance instruments in documentary credits, guarantees and documentary collections. It also supports the Islamic trade finance ecosystem. It provides flexibility in adapting to the complex rules that govern international trade.

Oracle Banking Trade Finance Process Management

This solution automates the complex processes involved in providing world class trade services to corporate customers. Streamlining and reducing complex paperwork across various stakeholders in the bank involved in the lifecycle of trade instruments including instrument creation, credit verification, risk management, exposure management, and tracking of various lifecycle events, the solution allows for high degree of straight through processing and electronic documentation support.

Oracle Banking Supply Chain Finance

Oracle Banking Supply Chain Finance is a comprehensive, digitized, front-to-back solution that supports the full lifecycle of supply chain finance and factoring across receivables and payables, offering supplier and buyer-centric financing. The solution gives corporate banks the flexibility needed to help their clients optimize working capital requirements and reduce transaction risk.

Oracle Banking Treasury Management

Oracle Banking Treasury Management is a comprehensive real-time standalone post-trade solution for the treasury back office. The solution helps banks centralize and optimize investment management and capital markets post-trade operations. The solution offers improved visibility, better controls, and streamlined and automated processes. The system includes a pre-settlement manager that automates deal review, validation, and confirmation.Oracle Banking Treasury Management helps a bank streamline deal processing, settlement, and messaging. The solution supports a comprehensive bouquet of instruments and offers comprehensive workflows, control mechanisms and reporting capabilities. Oracle Banking Treasury Management enables banks to choose a diverse range of investment products which support multiple currencies to help manage trade

Modern Risk and Finance and Financial Crime and Compliance Management

Our Modern Risk and Finance and Financial Crime and Compliance Management solutions are led by Oracle Financial Services Analytical Applications (OFSAA) which is a suite of industry leading applications catering to the critical areas of Risk, Finance, Treasury, Front office, Regulatory Reporting and Compliance.

Within OFSAA, we offer a unified set of finance, risk, and compliance applications to financial services organizations. These applications are grouped into five(5) portfolios, and each portfolio comprises a set of related products and services designed to collectively meet the portfolio objectives. In addition, the products in each portfolio work interconnectedly across portfolios. This interconnectivity generates a multiplier value effect for our customers who have purchased these products and services across the portfolios. They support progressive and continuous transformation journeys smaller, iterative initiatives that deliver measurable value over time. This approach reduces risk, enhances adaptability, and enables businesses to align transformation efforts more closely with evolving strategic objectives and helps meet ROI expectations of our customers.

All our applications are powered by our Analytical Applications Infrastructure (AAI) and Model Management and Governance

(MMG) together they provide globally patented US Patents & Trademarks (US-PTO) and European Union Patents Office (EPO) - state of the art tools, frameworks, libraries, and models that support building of all the OFSAA applications. They support deterministic, stochastic, and predictive analytics framework that delivers the foundation for AI, ML and GenAI. The solution portfolios are described below with brief explanations about each of them and mentions a few salient products in each portfolio: Analytics is the driving force behind many strategic decisions that financialinstitutions make and the key to meet the regulatory requirements. Complete, consistent, and accurate data is a crucial enabler that helps analytics leverage the correct information. Unified Data Foundation solutions provide a proactive, forward-looking use and re-use of traditional and new data sources from a single, unified source. This portfolio consists of the product Financial Services Data Foundation, which drives our customers business with unprecedented performance, responsiveness, scalability, and manageability by gaining a single view of enterprise-wide data. The industry-leading data model platform provides a single source of truth across risk, finance,treasury, and other areas to produce insightful analytics. This powers the finance modernization journeys at our customers with a complete record-to-report solution that offers data-smart modern finance, real-time analytical insights, centralized accounting, connected planning, and consistent reporting across regulatory, statutory, and management. Data Integration Hub manages upstream data acquisition and maintenance powered by ML and GenAI through intuitive business-driven capability. And finally, Data Governance provides active governance for accuracy that can integrate directly into Banks risk and finance processes. These capabilities can help automate data mapping, enrichment, validation, exception handling, and ingestion of structured and unstructured data. The OFSAA foundation enables domain-specific AI and agentic workflows across finance, risk, treasury, regulatory reporting, and . These capabilities can help automate and accelerate activities such as stress testingfinancial scenario analysis, risk assessment, regulatory interpretation, evidence collection, anomaly triage, investigative narrative generation, and management reporting. By combining automation with governance, entitlement controls, and human review, OFSAA helps customers improve efficiency while maintaining trust, transparency, and regulatory discipline.

Risk, Profitability & Balance Sheet Management

Financial institutions gain a competitive edge in the marketplace through timely, actionable intelligence and insights which are key to their success in delivering as per their vision. Having systems and services that can process billions of rows of instrument-level data with a multitude of dimensions, products, geographies, customer segments, currencies, etc. in a timely manner is required to deliver those insights. Our Profitability & Balance Sheet Management solutions help identify the banks portfolios most profitable customers, products, and organizations. These solutions optimize reward versus risk with accurate, up-to-date financial information. They also help provide an integrated, accurate and continuous planning and forecasting across multiple lines of business, customer segments, and products.

This portfolio includes following main offerings:

Liquidity Management which optimizes interest and fuse information across various different accounts, so that customers can manage daily liquidity in a consolidated way.

Liquidity Risk Regulatory Reporting which addresses the customers liquidity risk requirements, both regulatory and management. It performs and reports regulatory calculations such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), based on guidelines issues by Bank of International Settlements (BIS).

Profitability Analytics helps identify the most profitable customers, products, and organizations and monitor key performance indicators. The analytics is powered by AI NLP, NLG and LLMs which enables meaningful interactions and rapid decision making by the executives.

Embedded AI and analytics help incorporate machine learning and generative AI models into the existing application and user flows so that the system can score, predict, recommend, or even generate content automatically at the moment a decision is taken. This feature enables faster, more context aware insights and decisions.

Accounting Standards & Regulatory Reporting

Accounting Standards are the backbone of financial and regulatory reporting and are a foundation of the reliability and comparability of financial information. This can make it easier for institutions to access capital through debt and equity markets, helping them fund their growth and operations. Regulatory requirements such as Basel guidelines, similar guidelines in other countries, and stress testing help monitor capital adequacy to absorb potential losses and reduce the risk of bank failures. Meeting these requirements has long evolved from a simple transaction based reporting to complex iterative analytical based testing and reporting. Accounting Standards & Regulatory Reporting solutions alleviate operating costs of our customers by keeping up with changing standards and regulations with out-of-the-box support for regulations and industry standards. These solutions also make it possible to manage and execute multi-jurisdictional regulatory reporting in a single integrated environment. This portfolio consists of products: IFRS 9 & IFRS 17 which bring transparency in reporting of financial instruments and insurance contracts; CECL & LDTI provide US GAAP accounting standards compliance for credit provisions and insurance contracts; Climate Change Analytics enables International Sustainability Standards Board (ISSB) accounting standards compliance for Banks, Green House Gases (GHG) Emission Scope Reporting and risk analytics; Basel & Regulatory Capital covers Pillar I requirements across Basel II and Basel III guidelines including Risk Weighted Assets (RWA), Capital Ratios, Capital Buffers, Leverage Ratio, CVA computations, and supplementary leverage ratio of the bank; and Enterprise Stress Testing & Scenario Analysis empowers banks and financial institutions to define and perform enterprise wise stress tests and scenario analysis in an integrated and centralized manner. For more information on these solutions, please refer to https://www.oracle.com/financial-services/#risk-finance

Financial Crime & Compliance Management (FCCM)

Financial institutions are required to safeguard their systems from being used for illicit purposes by detecting and reporting suspicious activitieslikemoneylaundering,fraud,orotherfinancialcrimes of their customers and customers counterparties to local regulatory authorities. They play an important role in policing the transactions and are expected to maintain a strong KYC & Customer Due Diligence program, monitor and report suspicious transactions and accounts, and restrict or deny access to their services to individuals and entities as per applicable sanctions and embargoes.

FCCM solutions Anti Money Laundering, Know Your Customer, Customer Screening, Sanctions Filtering, Enterprise Case Management and Suspicious Activity Reporting - comprise of a modern, comprehensive, and extensible suite of applications that enable financialinstitutionswithadvancedcapabilitiestoeffectivelycombatfinancialcrime and comply with regulations while enhancing operational efficiency. These solutions are built leveraging AI and Machine Learning platforms, such as Graph technology, and incorporate principled, responsible AI for ethical use.

FCCM portfolio has a sophisticated AI Investigator which is a breakthrough multi-agent system that combines powerful Generative AI and Agentic AI technologies to automate the entire financialcrime investigation workflow delivering faster, more consistent, and more effective compliance outcomes. FCCMportfolioalsohas Compliance Studio which deploys ML based behavioral risk scoring to predict the propensity of crime, and unsupervised segmentation and anomaly detection to identify changing behaviors and more accurately capture risk. It has regulator accepted scenario catalog, typology-based scenarios and models which look for fingerprints of criminal activity and supervised models which look at many combined red flags to create actionable cases. Compliance Agent deploys "ethical money launderers" to stress test compliance controls and supports automated calibration to self-tune, automated case completion and Suspicious Activity Report Filing to law enforcement. Investigation Hub is a user centric platform that combines analytics and case management graph analytics-based investigation, automated narrative generation to optimize investigator efficiency, LLM investigator to automate L0 & L1 cases and next best case to serve the right cases at the right time to the right investigators.

For more information on these please visit https://www.oracle.com/financial-services/#financial-crime-compliance

Analyst Recognition

During the year, Oracle Financial Services was recognized by leading industry analysts for its banking, lending, risk, and revenue management solutions. IDC MarketScape named Oracle a Leader in AI-enabled trade financing, loan origination and management, and digital core banking platforms. Chartis recognized Oracle as a Category Leader in loan origination and limits & collateral management, and ranked it #1 in the RiskTech AI 50 2024 report. Celent recognized Oracle Financial Services in six reports on global digital banking platforms. These acknowledgments underscore Oracles continued momentum in helping financial institutions modernize, innovate, and operate with greater intelligence and resilience.

Services

Oracle Finergy, across our Consulting Services & Business Process Services business lines, enables financialservices enterprises to drive simplicity using technology, helping them engage with their customers in a personalized and frictionless manner. The Consulting Services business leads with an AI-first, domain-driven delivery approach to help Banking, Capital Markets, Mortgage and Insurance firms transform across the ‘Change the Bank and ‘Run the Bank spectrum. This includes modernizing onpremise business applications, migrating compute and data workloads to the cloud, strengthening resiliency, enabling cloud-native digital innovation, automating application support, and using AI-led solutions to drive decision support, intelligent automation and deeper business insights.

The business also delivers high-value Oracle application and technology solutions across technology roadmap definition, middleware integration, data engineering, data migrations, portal solutions, enterprise data platforms & AI-led innovation including domain-aligned Agentic solutions. These offerings help clients define a future-ready roadmap, integrate Oracle assets into their ecosystem, accelerate adoption and elevate realized value.

The Business Process Services business provides cost-effective, high-quality services across Transaction Processing, Finance & Accounting, Data Operations, Reporting and Helpdesk services for Banking, Capital Markets, Mortgage and Insurance clients. These services are delivered through a tech-enabled, automation-led model, enhanced by use case-aligned RPA and AI-led solutions. This comprehensive business process services ecosystem is supported by a mature process and consulting framework. The offerings areISO 9001 certified for quality management and ISO 27001 certified for information security management.

Analysis of our consolidated financial results

The following discussion is based on our audited consolidated financial statements which have been prepared in accordance with Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 ("Act") read with relevant rules of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant Schedule III), as applicable.

The consolidated financial statements as at March 31, 2026 include Oracle Financial Services Software Limited ("Company"), its subsidiaries and Controlled Trust (together referred to as "OFSS group" as described in note 1 to the consolidated financial statements).

You should read the following discussion of our financial position and results of operations together with the detailed consolidated Ind AS financial statements and the notes which form integral part of such financial statements. Our financial year ends on March 31 of each year.

Performance summary

(Amounts in million)

Year ended March 31, 2026	Products	Services	Total
Revenue from operations	69,416	7,305	76,721
Operating expenses	(34,998)	(5,215)	(40,213)
Unallocable expenses			(2,413)
Income from operations	34,418	2,090	34,095
Operating margin	50%	29%	44%
Profit for the year			26,393
Profit margin			34%
Year ended March 31, 2025
Revenue from operations	62,144	6,324	68,468
Operating expenses	(31,891)	(4,564)	(36,455)
Unallocable expenses			(1,946)
Income from operations	30,253	1,760	30,067
Operating margin	49%	28%	44%
Profit for the year			23,796
Profit margin			35%

Our total revenues in the financial year ended March 31, 2026 were 76,721 million, an increase of 12% over our total revenues of 68,468 million in the financial year ended March 31, 2025. The increase in revenues was primarily attributable to increase in the revenues from our products business.

Income from operations in the financial year ended March 31, 2026 was 34,095 million representing an increase of 13% from 30,067 million in the financial year ended March 31, 2025. The profit for the year in the financial year ended March 31, 2026 was 26,393 million, as against 23,796 million in the financial year ended March 31, 2025.

Revenues from operations Products revenues

Our products revenues represented 90% and 91% of our total revenues for the financial year ended March 31, 2026 and March 31, 2025 respectively. Our products revenues were 69,416 million in the financial year ended March 31, 2026, an increase of 12% from 62,144 million during the financial year ended March 31, 2025.

The percentages of our products revenues from different streams were as follows:

	Year ended March 31, 2026	Year ended March 31, 2025
License fees	15%	16%
Consulting fees	51%	51%
Maintenance fees	34%	33%
Total	100%	100%

Services revenues

Our services revenues represented 10% and 9% of our total revenues for the financial year ended March 31, 2026 and March 31, 2025 respectively. Our services revenues were 7,305 million in the financial year ended March 31, 2026, an increase of 16% from 6,324 million in the financial year ended March 31, 2025.

The percentage of total services revenues from fixed price contracts was 78% in the financial year ended March 31, 2026 and 80% in the financial year ended March 31, 2025, with the remainder of our services revenues attributable to time

Other income

Our other income primarily comprises of interest on bank deposits along with money market funds and foreign exchange gain / loss. Our other income in the financial year ended March 31, 2026 was 2,706 million, as compared to 3,042 million in the financial year ended March 31, 2025.

Expenses

Operating expenses

Our operating expenses consist of costs attributable to compensation of employees, project related travel expenses, professional fees paid to vendors, application software for internal use, selling and marketing expenses, research and development expenses, finance cost on lease liability, bad debts, impairment loss on contract assets, contribution towards Corporate Social Responsibility and overhead expenses associated with support functions such as human resources, finance, facilities and infrastructure, along with depreciation and amortization. We recognize these expenses as incurred.

Employee costs

Our employee compensation related expenditure increased by 7% to 34,338 million in the financial year ended March 31, 2026 from 32,047 million in the financial year ended March 31, 2025. Employee costs relate to salaries and bonuses paid to employees, retiral benefits, and a stock compensation charge along with staff welfare activities for employees. Increases in employee costs was primarily a result of compensation increases during the financial year ended March 31, 2026.

Travel related expenses

Our travel related expenditure decreased by 5% to 1,373 million in the financial year ended March 31, 2026 from 1,439 million in the financial year ended March 31, 2025. Travel costs relate to airfare, accommodation, and other related expenses incurred on travel of our employees on projects, sales and marketing, etc. Decrease in travel related expenses was primarily on account of decrease in project related travel.

Professional fees

Our professional fees related expenditure increased by 46% to 3,960 million in the financial year ended March 31, 2026 from 2,721 million in the financial year ended March 31, 2025. Increase in professional fees was primarily on account of an increase in cloud infrastructure costs and an increase in external contractors costs to meet specific project requirements.

Finance cost

Our finance cost increased to 25 million in the financial year ended March 31, 2026 from 5 million in the financial year ended March 31, 2025. Finance cost relates to interest on lease liabilities and income tax.

Other expenses

Our other expenditure increased by 52% to 2,276 million in the financial year ended March 31, 2026 from 1,498 million in the financial year ended March 31, 2025. Other expenses primarily consist of Corporate Social Responsibility expenditure, bad debts and Impairment loss on contract assets, facilities/infrastructure costs, application software fees, communication expenses, auditors remuneration and other miscellaneous expenses. Increase in other expenses was primarily on account of increase in facilities costs, Corporate Social Responsibility expenditure and impairment loss recognized on contract assets.

Depreciation and amortization

Our depreciation and amortization charge was 654 million and 691 million for the financial

March 31, 2025 respectively. Depreciation and amortization charge comprises depreciation on property, plant and equipment and amortization of right-of-use assets.

Operating Margin

Operating profit for the financial year ended March 31, 2026 was 34,095 million as against 30,067 million during the financial year ended March 31, 2025.

Income taxes

Our provision for income taxes in the financial year ended March 31, 2026 was 10,408 the financial year ended March 31, 2025. Our effective tax rate was 28% in the financial include foreign taxes representing income taxes payable overseas in various countries.

Profit for the year

As a result of the foregoing factors, net profit increased by 11% to 26,393 million in the financial 23,796 million in the financial year ended March 31, 2025.

Analysis of our standalone financial results

The following discussion is based on our audited standalone financial statements which have Ind AS, as prescribed under Section 133 of the Act read with relevant rules of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant Schedule III), as applicable.

In accordance with Ind AS 108 Operating Segments, the Company has disclosed the segment information in the consolidated financial statements, and you may refer to the performance summary under the analysis of our consolidated financial the same.

You should read the following discussion of our financial position and results of operations together with the detailed standalone Ind AS financial statements and the notes which form an integral part of such financial statements. Our financial year ends on March 31 of each year.

Revenues from operations Products revenues

Our products revenues represented 92% of our total revenues for the financial year ended March 31, 2026 and March 31, 2025 respectively. During the financial year ended March 31, 2026, our products revenues were 52,397 million, an increase of 12% from 46,889 million in the financial year ended March 31, 2025.

The percentages of our products revenues from different streams were as follows for:

	Year ended March 31, 2026	Year ended March 31, 2025
License fees	15%	16%
Consulting fees	49%	48%
Maintenance fees	36%	36%
Total	100%	100%

Services revenues

Our services revenues represented 8% of our total revenues for the financial year ended March 31, 2026 and March 31, 2025 respectively. Our services revenues were 4,770 million in the financial year ended March 31, 2026, an increase of 16% from 4,102 million in the financial year ended March 31, 2025.

The percentage of total services revenues from fixed price contracts was 81% in the financial year ended March 31, 2026 and 84% in the financial year ended March 31, 2025, with the remainder of our services revenues attributable to

Other income

Our other income primarily comprises dividend from subsidiary companies, interest on bank deposits and foreign exchange gain / (loss). Our other income in the financial year ended March 31, 2026 was 6,800 million, as compared to 17,210 million in the financial year ended March 31, 2025. During the year ended March 31, 2026 and March 31, 2025, a dividend of 4,334 million and 15,199 million respectively was received from its wholly owned subsidiary companies which is included in other income.

Expenses

Operating expenses

Our operating expenses consist of costs attributable to compensation of employees, project related travel expenses, professional fees paid to vendors, application software for internal use, selling and marketing expenses, research and development expenses, finance cost on lease liability, bad debts, impairment loss on contract assets, contribution towards Corporate Social Responsibility and overhead expenses associated with support functions such as human resources, finance, facilities and infrastructure, along with depreciation and amortization. We recognize these expenses as incurred.

Employee costs

Our employee compensation costs increased by 8% to 22,678 million in the financial year ended March 31, 2026 from 20,905 million in the financial year ended March 31, 2025. Employee costs relate to salaries and bonuses paid to employees, retiral benefits, and a stock compensation charge along with staff welfare activities for employees. Increases in employee costs was primarily a result of compensation increases during the financial year ended March 31, 2026.

Travel related expenses

Our travel related expenditure decreased by 7% to 830 million in the financial year ended March 31, 2026 from 896 million in the financial year ended March 31, 2025. Travel costs relate to airfare, accommodation, and other related expenses incurred on travel of our employees on projects, sales and marketing, etc. Decrease in travel related expenses was primarily on account of decrease in project related travel.

Professional fees

Our professional fees related expenditure increased by 19% to 1,579 million in the financial year ended March 31, 2026 from 1,325 million in the financial year ended March 31, 2025. Increase in professional fees was primarily on account of an increase in cloud infrastructure costs and an increase in external contractors costs to meet specific project requirements.

Finance cost

Our finance cost pertains to interest on lease liabilities which increased by 69% to 22 million in the financial year ended March 31, 2026 from 13 million in the financial year ended March 31, 2025.

Other expenses

Our other expenditure increased by 60% to 2,184 million in the financial year ended March 31, 2026 from 1,363 million in the financial year ended March 31, 2025. Other expenses primarily consist of Corporate Social Responsibility expenditure, bad debts and Impairment loss on contract assets, facilities/infrastructure costs, application software fees, communication expenses, auditors remuneration and other miscellaneous expenses. Increase in other expenses was primarily on account of increase in facilities costs, Corporate Social Responsibility expenditure and impairment loss recognized on contract assets.

Depreciation and amortization

Our depreciation and amortization charge was 563 million forthefinancialyear ended March 31, 2026 and 598 million for year ended March 31, 2025. Depreciation and amortization charge comprises depreciation on property, plant and thefinancial equipment and amortization of right-of-use assets.

Operating Margin

Operating profit for the financial year ended March 31, 2026 was 29,311 million as against 25,891 million during the financial year ended March 31, 2025.

Income taxes

Our provision for income taxes inthefinancialyear ended March 31, 2026 was 8,365 million as against 9,594 million in the ended March 31, 2025. Our effective tax rate was 23% and 22% in the financial year 2026 and 2025, respectively.financial Income taxes also include foreign taxes representing income taxes payable overseas by the Company in various countries.

Profit for the year

As a result of the foregoing factors, net profit for the financial year ended March 31, 2026 was 27,746 million as against 33,507 million during the year ended March 31, 2025.

Other metrics atios r Keyfinancial

The following table summarizes the keyfinancialratios for the financial years ended March 31, 2026 and March 31, 2025.

	Consolidated		Standalone
	2026	2025	2026	2025
Financial Performance
Net profit ratio	34%	35%	49%	66%
Financial Position
Current ratio	5 times	7 times	10 times	12 times
Net capital turnover ratio	1 time	1 time	1 time	1 time
Trade receivables turnover ratio	6 times	5 times	6 times	6 times
Trade payables turnover ratio	10 times	8 times	12 times	10 times
Debt service coverage ratio	131 times	87 times	222 times	178 times
Debt equity ratio (Lease liabilities on total equity)	0 times#	0 times#	0 times#	0 times#
Return on equity	33%	29%	38%	49%
Return on capital employed	50%	42%	51%	57%
Return on investment	NA	NA	54%1	192%1
Days Sales Outstanding	58 days	58 days	61 days	59 days

# Represents_ratio_less_than_0.50.

1During_the_years_ended_March_31,_2026_and_2025,_the_Company_received_dividend_from_its_wholly_owned_subsidiary_companies. _

Trade receivables

As per the Consolidated financials, trade receivables as of March 31, 2026 and 2025 were 13,514 million and 11,837 million respectively. As per the standalone financials trade receivables as of March 31, 2026 and 2025 were 9,899 million and 8,596 million respectively.

Geographic breakup of revenues

The following table represents the percentage breakup of our consolidated and standalone revenues for our products and services businesses by region:

	Year ended March 31, 2026			Year ended March 31, 2025
	Products Revenues	Services Revenues	Total Revenues	Products Revenues	Services Revenues	Total Revenues
Consolidated
Americas (NAMER)	36%	65%	39%	33%	67%	36%
Europe, Middle East, Africa (EMEA)	35%	23%	34%	36%	22%	35%
Asia Pacific (JAPAC)	29%	12%	27%	31%	11%	29%
Total	100%	100%	100%	100%	100%	100%
Standalone
Americas (NAMER)	31%	59%	33%	28%	61%	31%
Europe, Middle East, Africa (EMEA)	39%	27%	38%	40%	28%	39%
Asia Pacific (JAPAC)	30%	14%	29%	32%	11%	30%
Total	100%	100%	100%	100%	100%	100%

Customer concentration

The percentages of total revenues during financial year ended March 31, 2026 and 2025 that we derived from our largest customer, largest five customers and largest ten customers on a consolidated and standalone basis are provided in the table below. The Company contracts end customers in several countries through the local subsidiary of Oracle Corporation and entities under common control are considered as a single customer for the purpose of reporting customer concentration.

	Products Revenues		Services Revenues		Total Revenues
	2026	2025	2026	2025	2026	2025
Consolidated
Largest customer	55%	54%	26%	27%	51%	50%
Top 5 customers	69%	67%	72%	74%	66%	65%
Top 10 customers	74%	72%	93%	94%	72%	70%
Standalone
Largest customer	86%	85%	97%	98%	87%	86%
Top 5 customers	94%	93%	100%	100%	94%	93%
Top 10 customers	96%	96%	100%	100%	97%	96%

Internal control systems and their adequacy

We believe Oracle Financial Services Software group has in place adequate systems for internal control commensurate with the size of the business operations. These systems and processes cover all the financial and operating functions and are designed to provide reasonable assurance with regards to maintaining adequate controls, monitoring economy and efficiency of operations, protecting assets from unauthorized use or losses, and ensuring reliability of financial and operational information. The Group continuously strives to align all its processes and controls with global best practices.

Opportunities and threats

Oracle Financial Services benefits from a broad portfolio of robust, proven, and scalable products and services designed to meet the needs of a diverse set of financial institutions. Our ability to engage clients across the full lifecycle-from strategy through implementation and operations-enables delivery of end-to-end solutions at enterprise scale.

Sustained investment in R&D positions the Company to accelerate adoption of emerging technologies, particularly AI and cloud-native computing. This includes applying AI to improve decisioning, risk management, financial crime compliance, customer servicing, and operational efficiency, while leveraging cloud architectures designed for security, resilience, and performance. Our ongoing modernization through microservices, containerization, and domain-driven design supports faster innovation, modular deployments, and greater agility-helping clients introduce new capabilities more quickly and safely.

The Company operates in a rapidly evolving environment shaped by regulatory, competitive, geopolitical, and workforce-related factors that may impact growth and execution.

- Evolving regulation of AI and cloud adoption: Governments, central banks, and regulatory bodies continue to policies governing AI use, model governance, data privacy, data residency, and cloud deployment. Divergent or refine changing requirements across jurisdictions could increase compliance complexity, extend implementation timelines, or constrain certain AI-enabled use cases.

- Increased competition and disruption from new entrants: Efforts to foster startup ecosystems are likely to bring new players that differentiate through AI-first products, specialized platforms, and accelerated innovation cycles. This can intensify competitive pressure on incumbents and their technology partners, requiring continued investment and differentiation in AI capabilities and outcomes.

- Geopolitical and macroeconomic uncertainty: Geopolitical conflicts and related economic impacts can affect consumer sentiment, investment decisions, and global trade, potentially influencing financial services demand, budgets, and the pace of transformation programs.

- Shifting mobility and labor regulations: Ongoing changes to labor-market and mobility regulations in multiple countries may impact access to specialized skills, including AI, data, and cloud talent, and could affect delivery models and cost structures.

Liquidity and capital resources

Our capital requirement relates primarily to financing the growth of our business. We have historically sourced a majority of our working capital, capital expenditure and other requirements through our operating cash flow. During the financial year ended March 31, 2026 and March 31, 2025, we generated cash from operations of 26,383 million and 21,989 million respectively as per the consolidated financials and 21,286 million and 19,610 million respectively as per the standalone financials We are a zero-debt company. We expect that our primary financing requirements in the future will be capital expenditure and working capital requirements in connection with the expansion of our business. We believe that the cash generated from operations will be sufficientto satisfy our currently foreseeable capital expenditure and working capital requirements.

Human capital

We are a global organization with multi-country teams having diverse backgrounds. Our strong culture and processes ensure seamless collaboration across geographies.

As at March 31, 2026, the Company had 8,347 employees (March 31, 2025 - 8,045) and the OFSS Group had 9,155 employees (March 31, 2025 - 8,887).

Talent acquisition and retention

We maintain a strong talent pipeline with a balanced blend of financial services domain expertise and technological capabilities. To achieve this, we recruit from leading engineering and business institutions, complemented by lateral hiring from the IT and financial services sectors.

The Company places its employees at the core of its strategic priorities, recognizing them as its most valuable asset. It is committed to creating a positive, engaging, and inclusive work environment that enables individuals to thrive and contribute meaningfully to organizational goals. A strong focus is placed on continuous learning and capability building, with targeted investments in upskilling employees on emerging technologies, including artificial intelligence and other digital advancements. Through structured development initiatives, the Company equips its workforce to stay relevant in a rapidly evolving business landscape. By attracting, nurturing, and retaining talent, while fostering adaptability and future-ready skills, the Company strengthens its competitive advantage and drives sustained growth.

Employee experience and well-being

Employee safety, health and open culture is of paramount importance to your Company, and we take active steps to provide a safe and respectful work environment that is free from harassment or discrimination irrespective of background of the employees. Staying in good health physically and mentally is important to us. We believe supporting health and wellness is more than just offering an insurance policy. Apart from offering a very comprehensive health insurance, we also offer our employees, Outpatient benefit, Parenting support for employees with special needs dependent, Employee Assistance Program designed to help employees address personal or work-related issues that may impact their job performance, health, and overall well-being.

Performance management and career development

Employee performance management is a strategic priority, aligning individual contributions with organizational goals through continuous feedback, structured evaluations, and targeted development. Our Human Capital Management system provides insight-driven checkpoints to enhance performance through providing continuous feedback to our employees.

Our career development framework enables employees to actively shape their professional journey by identifying opportunities and building structured development plans aligned with their aspirations. AI-powered tools further support this process by offering personalized career recommendations, skill insights, and guided pathways, making career progression more accessible. We provide a robust digital learning ecosystem with anytime, anywhere access to curated content across business, leadership, and technical domains, catering to diverse learning needs. Employees also benefit from specialized programs from leading global universities, with recognized certifications.

Additionally, personalized coaching, intelligent tools, and structured resources make career growth and continuous learning more accessible and actionable.

Rewards and recognition

Our rewards framework is designed to recognize and celebrate employee achievements across individual, team, and group contributions. Through a range of structured recognition programs, we acknowledge and reward individuals and teams whose exceptional performance significantly contributes to business objectives and exemplifies our Companys values. These programs recognize excellence in areas such as customer satisfaction, leadership, innovation, creativity, and overall performance.

Risks and concerns

The Company has a robust plan for managing the risks faced in its global operations. The Risk Management Committee reviews the risks, possible impact and the mitigation plan. Listed below are some of the major risks, their impact and the mitigation plan.