Orient Technologies Ltd Management Discussions

1. Industry Overview 3 Indian Technology Sector

The Indian technology industry has continued to evolve from a predominantly technology outsourcing-led model into a broader ecosystem spanning enterprise IT services, IT infrastructure, cloud, cybersecurity, data centres, digital transformation, engineering and research, software products and technology-enabled business services. During FY 2025-26 , the industry operated against a backdrop of rapid technological change, uneven global economic conditions and a fundamental shift in enterprise technology priorities from experimentation towards measurable business outcomes.

Sector	Revenue (US$ billion)
IT Services	149
ER&D	63
BPM	59
Software	23
Hardware	21
Total Revenue	315

Figure 1. Indian technology industry revenue mix FY2026E. Source: NASSCOM Strategic Review 2026.

According to NASSCOM, Indias technology sector is expected to cross approximately US$315 billion in revenue in FY 2025-26 , with direct technology-sector employment approaching 6 million. The industry is increasingly being shaped by the expansion of Global Capability Centres, continued demand from BFSI and other technology-intensive sectors, and the growing relevance of differentiated and specialized technology capabilities. NASSCOM also notes a decisive shift from AI experimentation towards industrialization, with providers increasingly adopting outcome-based models and integrating AI into enterprise operations.

• Source: NASSCOM Strategic Review 2026, February 2026 The broader technology spending environment also remains supportive. Gartner estimates that total IT spending in India is expected to reach approximately US$176.4 billion in 2026, representing growth of 10.6% over 2025. Data centre systems, IT services, software and devices are all expected to contribute to this growth, reflecting sustained investment in infrastructure modernization, AI, cybersecurity, data analytics and digital transformation.

• Source: Gartner, India IT Spending Forecast, November 2025 For enterprises, technology is increasingly being treated as a core business enabler rather than a support function. Spending priorities are moving towards modern infrastructure, cloud adoption, cyber resilience, data platforms, automation and AI-ready environments, while organizations are simultaneously seeking greater visibility over technology costs and return on investment. This shift is creating opportunities for technology partners that can combine infrastructure, integration and managed services across the technology lifecycle.

Industry Metric	FY2026E	Growth / Commentary
Total technology industry revenue	US$315 bn	6.1% YoY
IT Services	US$149 bn	47.3% of industry revenue
Engineering R&D	US$63 bn	20.0% share
BPM	US$59 bn	18.7% share
Export revenue	US$246 bn	Export-led technology ecosystem
Direct technology employment	\u01536.0 mn	Net addition \u0153135,000
AI-linked revenue	US$10\u202212 bn	Shift towards scaled, ROI-oriented AI deployment
AI upskilling	2 mn+ professionals	Including \u0153200,000
		\u2022 300,000 in advanced AI skills

2. Technology Spending and Market Growth Signals

Gartners November 2025 forecast indicated that Indias overall IT spending could reach approximately US$176.4 billion in calendar 2026, representing 10.6% growth. Data centre systems, software, IT services and devices were all expected to record growth, reflecting continued investment in infrastructure modernisation, cloud, AI, cybersecurity and digital transformation.

Orient Service Line	External Market Indicator	Growth	Strategic Relevance
Data Centre Solutions	India data centre systems	20.5%	AI infrastructure, modernisation and
	spending: US$9.385 bn		resilient infrastructure
Cloud & DevOps	India public cloud spending: US$17.487 bn	28.1%	Hybrid/multi-cloud, AI-ready infrastructure and modernisation
Cloud / IaaS	India IaaS spending: US$6.259 bn	40.0%	Scalable compute, GPU/HPC and AI workloads
Cybersecurity	India information security spending: US$3.435 bn	11.7%	Security, compliance, monitoring and resilience
IT Infrastructure & Services	India IT services spending: US$35.383 bn	11.1%	Systems integration and managed services
End-User Computing / DaaS	India devices spending: US$66.442 bn	9.9%	Workplace refresh and lifecycle/ consumption models

Sources: Gartner, India IT Spending Forecast (November 2025); Gartner, Public Cloud Services Spending in India (June 2026); Gartner, Information Security Spending in India (March 2026). Industry indicators are not Orient-specific revenue forecasts.

3. Industry Outlook

The medium- to long-term outlook for the Indian technology industry remains constructive. The sector is moving from broad-based digital adoption towards a more focused phase of enterprise modernisation, AI industrialisation, cloud adoption, cybersecurity, automation and managed technology consumption. NASSCOMs Strategic Review 2026 describes this transition as a shift from scale-led growth towards value, innovation and outcome-oriented technology models.

Source: NASSCOM, Technology Sector in India: Strategic Review 2026, February 2026.

NASSCOM reported that Indias technology sector was expected to cross US$315 billion in FY2026 and indicated that FY2027 is likely to represent a more mature phase of AI adoption. Technology spending is expected to remain broadly range-bound at 5•7% year-on-year, while AI budgets are expected to scale progressively. The report also highlights the increasing importance of GCC expansion, BFSI demand, AI, ER&D and outcome-based delivery models.

Source: NASSCOM Strategic Review 2026. FY2026 figure is presented by NASSCOM as an FY26 estimate/expectation in the February 2026 review; it should not be represented as a March 31, 2026 audited actual without subsequent NASSCOM confirmation.

Gartners India IT spending forecast provides a further indication of sustained technology investment. India IT spending is forecast at US$176.3 billion in calendar 2026, representing growth of 10.6% over 2025. Gartner identifies cloud and digital technologies, AI infrastructure, cybersecurity, AI/ML, data analytics, application modernisation, connectivity and hyper-automation as key areas supporting this growth.

Source: Gartner, India IT Spending Forecast, November 18, 2025.

40 ANNUAL REPORT FY25-26

4. Key Industry Growth Themes

Trend	Industry development	Relevance / opportunity for Orient
AI / ML / Agentic AI	AI is moving from experimentation towards industrialised, domain-specific deployment; agentic systems are extending AI from support towards execution.	AI infrastructure, integration, data readiness, automation and managed technology environments.
Cloud / Hybrid / Multi-cloud	India public cloud spending is forecast at US$17.5 billion in 2026, 28.1%; IaaS 40% and PaaS 25.4%.	Cloud migration, hybrid-cloud architecture, governance, FinOps, security and managed cloud.
Data Centres / AI Infrastructure	AI-ready infrastructure requires scalable compute, networking, storage and resilient data-centre environments.	Data-centre modernisation, networking, compute, storage and infrastructure integration.
Cybersecurity	India information security spending is forecast at US$3.435 billion in 2026, 11.7%; security services 11.1%.	Managed security, MDR/SOC, cloud security, identity and compliance-led services.
Managed Services / DaaS	Enterprises increasingly seek scalable, consumption-oriented technology models and lower internal IT complexity.	Infrastructure managed services, lifecycle management, DaaS and recurring service models.
Digital Transformation / Data / Analytics	Modernisation increasingly combines applications, infrastructure, data and AI to improve productivity and customer outcomes.	Integrated digital transformation, data platforms, analytics and application- infrastructure integration.
Automation / RPA	Hyper-automation and intelligent automation are increasingly being embedded into enterprise processes to improve productivity, control and turnaround time.	Process automation, workflow integration, service-desk automation and outcome-based managed services.
ER&D / Digital Engineering	NASSCOM highlights ER&D and digital engineering as important growth areas as enterprises seek deeper technology ownership and product-led capabilities.	Potential adjacent opportunity through digital engineering, infrastructure- enabled product environments and technology partnerships.
BPM / Intelligent Operations	BPM is evolving from traditional cost- and-scale models towards intelligent, technology-enabled and outcome-oriented operations.	Automation-led operations, service management and technology-enabled process optimisation.

4.1. Cloud Computing and Hybrid IT

Cloud adoption is entering a more strategic phase. Gartner forecasts end-user spending on public cloud services in India at US$17.5 billion in 2026, up 28.1% from US$13.7 billion in 2025. IaaS is expected to be the fastest-growing segment at 40.0%, while PaaS is expected to grow 25.4%. Gartner also identifies governance of increasingly complex hybrid, multi-cloud and AI-enabled environments as a significant enterprise challenge.

Source: Gartner, Forecast of End-User Public Cloud Spending in India, June 1, 2026.

4.2. Cybersecurity and Digital Resilience

Cybersecurity is becoming an integral component of enterprise technology architecture rather than a standalone control function. Gartner forecasts information security spending in India at US$3.435 billion in 2026, an increase of 11.7%. Security services are forecast to grow 11.1%, with managed security services among the faster-growing areas. Gartner also highlights identity-related threats, cloud security, AI-enabled threats and regulatory requirements as key factors influencing security investment.

Source: Gartner, Information Security Spending in India, March 9, 2026.

4.3. Data Centres and AI Infrastructure

Indias data-centre ecosystem is entering a period of accelerated investment, supported by AI workloads, cloud adoption, data sovereignty, digital public infrastructure and enterprise modernisation. The Companys market opportunity is not limited to construction of data centres; it also extends to infrastructure integration, networking, compute, storage, resilience, security and lifecycle management.

AI workloads are increasing infrastructure requirements for high-performance compute, high-speed networking, scalable storage and higher-density environments. Gartner similarly identifies AI infrastructure and data sovereignty as important drivers of data-centre investment in India.

Source: Gartner, India IT Spending Forecast, November 2025; industry capacity observations should be separately cited to the relevant CBRE/Mordor Intelligence source used in the final Annual Report.

4.4. Managed Services and Device-as-a-Service

Enterprises are increasingly seeking predictable technology expenditure, lifecycle management and outsourced operations. Managed services can reduce the operational burden on internal IT teams, while Device as a Service combines device deployment, lifecycle management, support and financing into a recurring service framework. Orients FY2026 investor presentation identifies Infrastructure Managed Services and Device as a Service within its IT Infrastructure & Application Services portfolio.

Sources: Orient Technologies Limited, Investor Presentation Q4 FY2026, May 2026; CareEdge Research, Research Report on IT/ITeS Industry, September 2025.

4.5. Artificial Intelligence, Digital Transformation and Government-led Digitalisation

Artificial Intelligence emerged as a structural technology theme during FY2025-26 , with the focus increasingly moving from experimentation towards operational deployment and measurable business outcomes. For infrastructure and managed-service providers, the AI opportunity extends beyond AI applications to compute, networking, storage, cloud platforms, data management, monitoring, security and resilient operating environments.

Source: NASSCOM Strategic Review 2026, February 2026; Orient Technologies Investor Presentation Q4 FY2026, May 2026.

Digital transformation is increasingly centred on the integration of applications, data, infrastructure and automation rather than isolated technology deployments. Government-led initiatives including Digital India and IndiaAI continue to support digital infrastructure, public-sector technology adoption and AI ecosystem development. These themes are relevant to Orients customer exposure across BFSI, telecommunications, Government and PSU, ITeS and mid-market sectors.

Sources: CareEdge Research, Research Report on IT/ ITeS Industry, September 2025; Orient Technologies Investor Presentation Q4 FY2026, May 2026.

5. Customer and Sector Opportunity

Customer segment	Technology requirement	Relevance to Orient
BFSI	High availability, cybersecurity, data resilience, cloud and regulatory compliance	Strong fit with infrastructure, cybersecurity, cloud and managed services.
Government & PSU	Digital sovereignty, secure infrastructure, data localisation, modernisation and public digital services	Opportunity for domestic infrastructure integration and managed technology deployments.
Telecommunications	High-scale infrastructure, networking, cloud and operational resilience	Relevant to network, data-centre and managed infrastructure capabilities.
ITeS	Cloud, end-user computing, cybersecurity, automation and scalable infrastructure	Demand for managed, flexible and secure technology environments.
Mid-market enterprises	Cost-efficient IT, outsourcing, cloud adoption and cybersecurity	Opportunity for integrated managed services and DaaS models.

6. SWOT Analysis

Strengths	Weaknesses
Integrated IT infrastructure and services capability	Smaller scale than large listed IT infrastructure integrators
Diversified exposure across BFSI, Government/PSU, telecom, ITeS and mid-market customers	Domestic market concentration
Capabilities spanning data centre, cloud, cybersecurity and managed infrastructure	Infrastructure/hardware-linked revenues can carry higher working-capital requirements
Established enterprise relationships and domain experience	Need to continue increasing recurring, annuity-oriented service revenues

Opportunities	Threats
AI infrastructure and enterprise GPU deployments	Rapid technology obsolescence and changing OEM platforms
Cloud, hybrid cloud and managed cloud adoption	OEM pricing pressure and intense competition
Cybersecurity, MDR/SOC and compliance services	Imported hardware cost and currency volatility
DaaS and subscription-led technology consumption	Supply-chain constraints and lead-time uncertainty
Data-centre modernisation and digital infrastructure	Talent availability and evolving cybersecurity threats
Automation and intelligent managed services	Larger integrators with greater scale and purchasing power

7. Key Growth drivers for the industry

The Indian technology industry is expected to remain supported by a combination of structural and secular growth drivers. Continued enterprise digitisation, increasing cloud adoption, rising data volumes, expansion of AI workloads, growing cybersecurity requirements and ongoing data-centre capacity additions are expected to sustain technology investment. The expansion of Global Capability Centres and digital public infrastructure is also contributing to the broader technology ecosystem and creating demand for scalable, secure and resilient technology environments. The increasing preference for managed and subscription-based technology models is another important industry driver. Enterprises are increasingly seeking technology partners that can combine implementation with ongoing monitoring, cybersecurity, support, lifecycle management and optimisation. This shift is particularly relevant for organisations seeking to maintain lean internal technology teams while managing increasingly complex infrastructure estates. For technology service providers, this creates opportunities to build recurring and annuity-oriented revenue streams through managed infrastructure, cloud, cybersecurity and Device-as-a-Service offerings.

Indias large technology talent base, established technology ecosystem, expanding domestic digital economy and improving digital infrastructure provide a competitive foundation for continued growth. Increasing investment in domestic data centres and cloud infrastructure is also supported by enterprise requirements relating to latency, data residency, resilience, business continuity and regulatory compliance.

8. Industry Risk and Challenges

The technology industry remains exposed to global macroeconomic uncertainty, changes in enterprise technology budgets, geopolitical developments, trade and supply-chain disruptions and variations in global technology demand. Technology providers with exposure to multinational customers may also be affected by changes in technology spending priorities, sourcing strategies and discretionary IT expenditure in key markets.

Rapid technological change presents both opportunity and execution risk. Technology providers need to continuously develop capabilities, retain specialised talent and maintain relevant technology partnerships as cloud, AI, automation, cybersecurity and data technologies evolve. The increasing adoption of AI may also alter conventional delivery and pricing models by improving productivity and reducing the human effort required for selected technology activities, requiring service providers to continuously adapt their offerings and commercial models.

Cybersecurity and data privacy remain material industry risks. As enterprises increase their dependence on digital infrastructure, cloud platforms and AI-enabled applications, the potential impact of security incidents, data breaches, service interruptions and compliance failures becomes more significant. Technology providers therefore need to maintain robust security, resilience, governance, monitoring and business continuity capabilities.

The availability and retention of specialised technology talent remains an important consideration, particularly in areas such as AI, cloud, cybersecurity, data engineering and infrastructure. The industry is increasingly moving from volume-based hiring towards specialised skills, continuous reskilling, productivity enhancement and greater use of automation. This transition requires service providers to invest in workforce capability and operating models that can respond effectively to changing technology requirements.

Source: NASSCOM Strategic Review 2026, February 2026.

9. Outlook for FY2026–27

The outlook for FY2026•27 remains favourable for technology infrastructure and services providers that can combine infrastructure, cloud, cybersecurity, managed services and automation. NASSCOM expects FY27 to be characterised by a more mature phase of AI adoption, with technology expenditure broadly range-bound at 5•7% while AI budgets progressively increase. The competitive focus is therefore expected to shift from technology experimentation towards measurable business outcomes, secure deployment and efficient technology operations.

Source: NASSCOM Strategic Review 2026, February 2026.

10. Orient Technologies 3 FY2025–26 Financial and Operating Performance

The Group has prepared consolidated financial statements for FY2025-26 following the acquisition/investment in subsidiaries and associates during the year. Accordingly, the consolidated FY2025-26 financial information is not directly comparable with a full-year consolidated prior-period base. For analysis of the underlying year-on-year performance of the Companys operations, standalone FY2024-25 and FY2025-26 financial information is presented below, while consolidated FY2025-26 figures are provided separately.

869.5 Cr	49.1 Cr	5.65%	4.6 Cr	1.00
Consolidated Revenue	Consolidated EBITDA	EBITDA Margin	Consolidated PAT	Basic EPS

10.1 Consolidated FY2025–26 Performance

Rs. crore except EPS	FY2025\u201326 Consolidated
Revenue from operations	869.54
EBITDA	49.15
EBITDA margin	5.65%
PBT before exceptional items	29.86
Exceptional items	23.68
PBT	6.18
PAT attributable to owners	4.57
Basic EPS	1.00

Consolidated revenue from operations was ©869.54 crore and consolidated EBITDA was ©49.15 crore, representing an EBITDA margin of 5.65%. Profit before exceptional items was ©29.86 crore. After exceptional items of ©23.68 crore, consolidated profit before tax was ©6.18 crore and profit attributable to owners was ©4.57 crore.

10.2 Exceptional Items

Exceptional item	Rs. crore	Nature
Impact of new labour code implementation	4.08	Incremental employee benefit liability arising primarily from the change in the definition of wages under the new Labour Codes, comprising gratuity and long-term compensated absences
Cost relating to discontinued customer	19.60	Write-off of unamortised cloud-based marketplace support / committed costs relating to a discontinued customer
Total exceptional items	23.68	Presented separately due to material and non-recurring nature

10.3 Segment Performance

With effect from April 1, 2025, the Group changed its internal organisation structure and the basis on which the Chief Operating Decision Maker reviews financial information. The Group now reports two reportable business segments: IT Infrastructure Solutions and IT Infrastructure and Application Services. Comparative segment information has been restated accordingly.

Reportable segment	FY2025\u201326 Revenue Rs. crore	Share of Revenue	Segment Gross Profit
IT Infrastructure Solutions	418.37	48.1%	42.21
IT Infrastructure and Application Services	451.17	51.9%	93.60
Total	869.54	100.0%	135.82*

11. Balance Sheet Strength, Capital Allocation and Liquidity Position

11.1 Asset Base Expansion

The Groups total asset base stood at ©569.88 crore as at March 31, 2026, reflecting a larger consolidated balance sheet following significant capital deployment and consolidation of acquired entities during the year.

Total non-current assets stood at ©128.39 crore as at March 31, 2026, comprising property, plant and equipment of ©76.64 crore and intangible assets of ©15.50 crore. In addition, goodwill on consolidation amounted to ©1.72 crore. The balance non-current assets primarily comprised other non-current financial assets and deferred tax assets.

Current assets stood at ©441.49 crore, including trade receivables and unbilled revenue of ©251.65 crore, cash and cash equivalents of ©62.77 crore, other bank balances of ©10.28 crore and other current assets of ©63.99 crore.

The expansion also reflects strategic investments and business combinations, including acquisition of a 100% stake in Red Hut Innovation Technology Private Limited and 46% stakes in Athena IT and Telecom Solutions Private Limited and AIT Internet Services Private Limited during FY2025-26 .

11.2 Equity Strengthening

Total equity stood at ©336.39 crore as at March 31, 2026, comprising equity share capital of ©45.81 crore and other equity of ©290.59 crore, providing a strong capital base for the Group.

Equity share capital increased from ©41.64 crore to ©45.81 crore during the year pursuant to the issue of 41,64,174 bonus shares in the ratio of 1¬10 on January 06, 2026.

Other equity remained substantial at ©290.59 crore, supported by retained earnings of ©175.50 crore, securities premium of ©112.55 crore, capital reserve of ©0.34 crore, shareholders contribution of ©0.65 crore and other comprehensive income of ©1.55 crore.

The Group reported profit attributable to owners of ©4.57 crore and total comprehensive income of ©4.53 crore for FY2025-26 , contributing to retained earnings despite exceptional items recognised during the year.

11.3 Liquidity and Borrowings

Rs. crore	March 31, 2025	March 31, 2026
Standalone borrowings	1.40	58.90
Standalone cash & cash equivalents	114.08	62.51
Standalone net cash / (net debt), excluding lease liabilities	112.67	3.61

The Company continued to maintain a strong liquidity position during FY2025-26 , with cash and cash equivalents of ©62.51 crore as at March 31, 2026. Gross borrowings stood at ©58.90 crore, reflecting the Companys strategic deployment of capital towards business requirements, including capital expenditure and working capital. As a result, the Company maintained a positive standalone net cash position of ©3.61 crore, excluding lease liabilities, at the end of the year. The overall liquidity position provides the Company with a sound financial base to support its ongoing operations and future growth initiatives.

12. Business Strategy and Strategic Priorities

The Companys strategy is centred on strengthening its position as an integrated technology infrastructure and services partner. The business is positioned across data centre solutions, end-user computing, cybersecurity, cloud and DevOps, digital transformation, infrastructure managed services and Device as a Service.

Strategic theme	FY2025\u201326 relevance
Service-led transformation	Increasing focus on managed services, cloud, cybersecurity and recurring technology models.
Data centre and AI infrastructure	Positioning around infrastructure modernisation, resilient architectures and AI\u2022 ready environments.
Cloud and DevOps	Addressing hybrid/multi-cloud, application modernisation, workload optimisation and governance requirements.
Cybersecurity	Building capabilities aligned with increasing enterprise security and regulatory requirements.
DaaS / consumption models	Expanding lifecycle and subscription-oriented technology delivery models.
Inorganic capability building	Investments in subsidiaries and associates broadened the Group\u2019s technology ecosystem during FY2025-26 .

13. Risk Management and Industry Challenges

Risk / Challenge	Potential impact	Management response / mitigation focus
Margin pressure	Hardware-led engagements and cost escalation can compress margins.	Increase service mix, improve project execution and pricing discipline.
Working-capital intensity	Receivable cycles and project billing can constrain cash generation.	Tight receivables governance, milestone billing and collections discipline.
Technology obsolescence	Rapid changes in AI, cloud and cybersecurity can reduce relevance of existing capabilities.	Continuous skills development, OEM partnerships and portfolio refresh.
Supply-chain / geopolitical risk	Import dependence can affect availability and cost of hardware.	Diversified sourcing, planning and customer- level delivery management.
Cybersecurity / data risk	Security incidents can result in operational, financial and reputational consequences.	Security-by-design, monitoring, resilience and compliance controls.
Government / PSU execution cycles	Long procurement and implementation cycles can affect revenue timing and working capital.	Strong project governance and contract / milestone management.
Talent availability	Competition for specialised technology skills can increase cost and attrition risk.	Upskilling, retention and targeted hiring.

14. Human Capital

At Orient Technologies, human capital forms the core of our operational and strategic excellence. With a team of 1,602 permanent professionals as of March 31, 2026, spread across India and Singapore, our people are instrumental in delivering innovation, customer satisfaction, and service quality. We cultivate a workplace culture rooted in collaboration, inclusion, and continuous learning, empowering individuals to thrive. Our leadership team actively nurtures this ecosystem through structured training in emerging technologies like cloud computing, cybersecurity, and data analytics, alongside performance-linked incentives and recognition platforms. Initiatives such as Employee Stock Ownership Plans

• ESOPs) and open feedback mechanisms reinforce our commitment to aligning individual aspirations with organizational growth. Through these measures, we strive to remain an employer of choice, championing diversity, equity, and professional development at every level.

15. Internal Control Systems and Adequacy

Orient Technologies has established a robust and scalable internal control system tailored to the complexity of its operations in IT infrastructure, cloud services, and ITes. This framework ensures resource efficiency, asset protection, and financial integrity across all business functions. It is underpinned by automated checks, regular internal audits, and statutory reviews that validate data reliability and compliance with regulatory requirements. Reinforced by globally recognised certifications such as ISO and CMMI, our controls are further strengthened by the use of advanced data analytics and monitoring tools for real-time visibility and anomaly detection. This proactive approach enables the Company to mitigate operational and financial risks effectively, while maintaining transparency, accuracy in reporting, and long-term stakeholder confidence.

16. Compliance

Orient Technologies Limited has deployed a resilient internal check process to mitigate and limit the risk of non-compliance. The Company adopts a proactive approach to compliance and places emphasis on timely and responsive intervention. Compliance with applicable laws and regulations forms an essential part of its business operations and adheres to national and regional regulations across diverse areas such as product safety, product claims, trademark, copyright, patents, competition, employee health and safety, the environment, corporate governance, listing and disclosure, employment, and taxation. The Company is also focusing on increasing awareness, documentation and governance processes, while supplementing the expertise of internal teams with independent consultants, wherever required.