Paramatrix Technologies Ltd Management Discussions

India is undergoing a foundational shift in its AI ecosystem, driven by the Rs. 10,300 Lakhs IndiaAI Mission, which aims to democratize access to high-performance computing and AI infrastructure, as per the

PIB, Government of India report.The rollout of 18,000+

GPUs, an open GPU marketplace, and subsidized compute at just Rs. 100/hour is enabling startups, researchers, and enterprises to innovate without barriers.

This is supported by investments in semiconductor fabs, development of indigenous GPUs, and the creation of AI Centres of Excellence across healthcare, education, agriculture, and smart cities.

India also leads globally in AI skill penetration, with talent demand expected to reach 1 million by 2026. The governments focus on open datasets, multilingual AI models, and AI-integrated Digital Public Infrastructure is fostering rapid adoption across public services and industry. The surge in GenAI startup funding, rise of

AI-focused accelerators, and a nationwide push for skilling in Tier 2 and Tier 3 cities further underline Indias ambition to become a global AI hub.

Against this backdrop, Paramatrix Technologies Limited is strongly aligned with the national AI vision. Its AI-powered platforms—Playmity, XSIGHT, and ITCS—address real-world use cases in compliance, analytics, and performance management. With its product-led approach and deep expertise in AI-first architecture,

Paramatrix is well-positioned to build scalable, context-aware solutions that contribute to Indias AI-led digital transformation.

Paramatrix Technologies Limited is a technology-driven enterprise delivering digital solutions to clients across

India and select international markets. Founded in 2004 and listed on the NSE EMERGE platform in september 2024, the company focuses on building intelligent, scalable, and domain-aligned platforms that serve the evolving needs of businesses and institutions.

The companys service portfolio spans application development, cloud enablement, cybersecurity, automation, and data analytics—offered through flexible delivery models tailored to complex enterprise environments. Paramatrixs strengths lie in solving compliance-intensive and performance-critical challenges through platform-led delivery and sector-specific configurations.

With over two decades of experience, Paramatrix has developed deep expertise across financial services, capital markets, logistics, government, and education.

The companys business model emphasizes agility, innovation, and value creation—enabling it to act as a long-term transformation partner to a diversified client base in both domestic and global markets.

In FY25, Paramatrix secured long-term orders worth Rs. 2,443 Lakhs reflecting strong demand across compliance-led and enterprise-critical solutions. Key contracts included:

? Rs. 890 Lakhs digital transformation project for a financial infrastructure entity

? Rs. 615 Lakhs engagement with a global capital markets firm

? Rs. 320 Lakhs compliance deployment for a domestic rating agency These wins reinforce the companys delivery credibility and deep sectoral alignment.

The company commenced operations in Japan, expanding its Asia-Pacific presence alongside subsidiaries in Singapore and Hong Kong. International revenue contribution rose to 27%, supported by region-specific strategies and an expanding base of global clients.

Over 350 projects were delivered across 19 countries, enabled by agile models like BOT and dedicated teams.

Paramatrix continued to invest in secure infrastructure, cloud enablement, and low-code frameworks to scale high-impact deployments across BFSI, logistics, and governance tech.

With a strong emphasis on delivery governance, modularity, and client adaptability, Paramatrix sustained high execution standards. Internal efficiencies, improved resource utilization, and robust data security practices further enhanced operational resilience.

Paramatrix Technologies Limited reported a Total Income of Rs. 3,133 Lakhs in FY25, reflecting a 9.6% growth over the previous year. This was driven by consistent project delivery, deeper client engagement, and a strong foothold across financial services, capital markets, and enterprise accounts. Net Sales stood at Rs. 2861 Lakhs, supported by multi-year service contracts and longstanding customer relationships.

Profitability ^{during the year, with EBITDA at} Rs. 814 Lakhs and a margin of 25.99%, up from 19.80% in FY24. Net Profit rose to Rs. 576 Lakhs with a healthy net margin of 18.37%. The margin improvement was led by better utilization, cost control, and favorable project mix.

Revenue remained 72.87% domestic and 27.13% international, reflecting stable growth through subsidiaries in Singapore and Hong Kong. With 94.33% of revenue contributed by top 10 clients, the company maintained strong business continuity and low client churn.

As of 31^st March, 2025, Paramatrix held cash and bank balances of Rs. 4,536 Lakhs and remained debt-free.^{services, government, and}

In FY25, Paramatrix Technologies Limited maintained a robust presence in both domestic and international markets. The company generated 73% of its revenue from

India, underscoring its strong foundation across sectors logistics.suchas financial

The remaining 27% was contributed by international operations, reflecting the companys steadily diversifying global reach.

International business is anchored through wholly owned subsidiaries in Singapore, Hong Kong, and Japan, offering access to digitally mature and compliance-driven markets in the Asia-Pacific region. The commencement of operations in Japan during the year marked a key milestone, aligning with the companys broader strategy to deepen client relationships in strategic geographies. With successful project execution across 19 countries,

Paramatrix continues to expand its footprint through region-specific strategies, sectoral expertise, and a delivery model built on scalability and execution excellence.

FY 2024-25 ratios highlight a strong improvement in financial efficiency, driven by disciplined capital deployment, and a lean operating model. Enhanced ROCE and ROE reflect better earnings quality and optimal equity utilization.

These indicators affirm Paramatrixs financial resilience and readiness to scale sustainably—anchored in innovation, operational discipline, and long-term value creation.

Platform-Led Demand: With rising enterprise focus on regulatory compliance, data visibility, and performance optimization, Paramatrix is well-positioned to benefit from demand for modular, scalable platforms across

BFSI, capital markets, and government sectors.

AI and Digital Transformation Tailwinds: Increasing adoptionofAI,automation,andcloud-nativetechnologies across both domestic and international markets offers strong headroom for growth. Paramatrixs focus on low-code frameworks, data-driven delivery, and real-time analytics aligns well with enterprise transformation priorities.

Global Delivery Expansion: International operations, particularly through subsidiaries in Singapore and Hongprofitability, Kong, offer opportunities to scale platform offerings and win multi-market mandates. Strategic contract wins in

FY 2024-25 have validated the companys global delivery readiness.

Government and Public Sector Digitisation: Policy momentum in India around Digital Public Infrastructure (DPI), G2C services, and e-governance presents new avenues for Paramatrix to expand in secure, compliance-led public sector deployments.

Client Concentration significantportion Risk: of A revenue (94.33%) comes from the top 10 clients. While these relationships are long-standing, concentrated exposure could impact revenue stability if engagement terms change.

Talent Supply and Cost Inflation: Intense competition for skilled talent in areas like AI, cloud, and cybersecurity may lead to wage pressure and retention challenges, particularly in project-heavy quarters.

Currency and Geo-Political Exposure: With growing international exposure, the company remains sensitive to FX fluctuations, regulatory changes, and macro-political developments in key markets.

Technology Obsolescence: Rapid evolution in digital tools and architectures necessitates continuous investment in R&D and capability upgrades. Any delay in innovation or tech adoption could affect competitiveness.

Paramatrix Technologies Limited operates in a dynamic business environment marked by rapid technological shifts, evolving regulatory frameworks, and global delivery dependencies. In response, the company has adopted a structured and forward-looking risk management approach that focuses on anticipating, assessing, and mitigating both strategic and operational risks.

With over 94% of revenue contributed by its top 10 clients, Paramatrix maintains a focused client strategy but is exposed to concentration risk. The company mitigates this through multi-year contracts, deep account penetration, and expansion into adjacent service areas to increase wallet share and reduce dependency over time.

Access to skilled talent in areas such as AI, cybersecurity, and cloud remains a key execution enabler. Paramatrix addresses this through a combination of adaptive hiring, internal upskilling, and skill-aligned resourcing models.

The company also transformation emphasizes ais strong underwayculture in of ownership, learning, and project-led growth to enhance retention.

Operating in compliance-heavy sectors, Paramatrix places high importance on information security and regulatory alignment. Its infrastructure includes secure

VPN access, sandbox environments, role-based controls, and adherence to SEBI, RBI, and ISO-compliant standards.

Internal audits and external assessments are conducted periodically to ensure governance readiness.

The risk of obsolescence is inherent in digital services.

Paramatrix mitigates this through continuous investments in R&D, platform reusability, and early adoption of emerging technologies. The companys focus on modular design and cloud-native architectures ensures adaptability and faster modernization cycles.

With growing revenue from overseas clients, the company is exposed to currency volatility and geopolitical shifts.

Treasury risk is managed through natural hedging, reserve buffers, and business diversification across stable regulatory markets like Singapore and Hong Kong.

Paramatrix remains committed to strengthening its risk oversight through real-time reporting, early-warning indicators, and board-level review mechanisms. Its proactive, systems-driven approach ensures resilience and business continuity in a fast-evolving technology landscape.

Paramatrix Technologies enters the next phase of its growth journey with a sharpened focus on innovation, industry diversification, and global expansion. The companys sustained momentum in the BFSI sector continues to be its foundation, but the horizon is widening with Healthcare, Cybersecurity, and Artificial

Intelligence poised to become major growth pillars in the years ahead.

A significant healthcare vertical, where Paramatrix has made focused investments in talent and capabilities to support integration of medical devices, interoperability with foreign systems, and the digitization of clinical workflows.

As the global healthcare ecosystem embraces smarter, more connected solutions, Paramatrix is well-positioned to address these emerging needs with robust and scalable offerings.

On the cybersecurity front, the soon-to-be-launched

Bulwark platform represents a critical step forward.

Developed to serve enterprise-grade security needs, Bulwark is designed as both a product and a service capability—reinforcing Paramatrixs credibility in regulated and data-sensitive industries. Complemented by our continuing work in secure event log management through EventJet, this positions the company as a key enabler of enterprise security, compliance, and resilience. Artificial Intelligence continues to be a strategic backbone across Paramatrixs service and product landscape. Over the past year, the company has expanded its internal research capacity and made substantive progress in applying machine learning, large language models (LLMs), and predictive analytics to real-world business problems. Flagship products such as XSIGHT (advanced analytics and reporting), ConvX (a Gen AI-powered conversational platform), and Playmity

(gamification for fieldsalesforces) are early outcomes of this innovation agenda. These platforms are modular, customizable, and industry-ready—demonstrating our ambition to move steadily from services to IP-led growth. While the companys revenues remain predominantly service-driven today, the product mix is expected to rise meaningfully in the near term. The current 5:95 product-to-service ratio is projected to evolve towards 10:90 or even 15:85, as XSIGHT, ConvX, and Playmity gain market traction. Bulwark and EventJet are expected to follow a similar trajectory as enterprise adoption grows. This transition represents not just a shift in business model but a strengthening of recurring revenue streams and long-term enterprise value.

Geographically, Paramatrix is expanding its footprint beyond India and Southeast Asia. The recently launched

Japan entity and increasing traction in the Middle East signal a deeper strategic shift towards high-opportunity global markets. These regions, combined with ongoing partnerships with Microsoft, AWS, Oracle, and IBM, provide a strong foundation for delivering world-class solutions across diverse technology ecosystems.

Looking ahead, Paramatrix Technologies remains committed to its core philosophy: delivering domain-intensive, innovation-led solutions with speed, reliability, and scale. The companys balanced approach grounded in operational excellence and driven by product-led disruption will continue to defineits competitive advantage.

As markets demand agility, security, and intelligence across every layer of the digital stack, Paramatrix is well-equipped to lead. With a strong leadership team, deep client trust, expanding global presence, and an ambitious innovation pipeline, the company is poised for sustained growth, resilience, and market relevance in the years to come.

Paramatrix Technologies Limited has instituted a sound and evolving internal control framework aligned with its rapid scale, global operations, and technology-centric service delivery model. The internal control systems are designed to safeguard assets, ensure the integrity of financial reporting, and promote operational efficiency across its domestic and international business lines.

The internal control structure at Paramatrix is closely linked to its strategic growth objectives—especially in sectors like BFSI, cybersecurity, and digital transformation—and is governed by clear policies, standard operating procedures (SOPs), and defined accountability matrices. These controls encompass functional, technical, and financial workflows across its service lines, including application development, AI-driven analytics platforms, cloud services, and cybersecurity solutions.

The Companys internal audit function operates independently and reports directly to the Audit

Committee of the Board. Periodic reviews are undertaken to assess compliance with corporate policies, statutory regulations, data privacy standards, and contractual obligations. Particular attention is paid to project delivery controls, revenue recognition, data access protocols, and protection against cyber threats, especially given the sensitive nature of many client engagements in regulated industries.

Given the Companys international presence—including subsidiaries in Japan, Singapore, and Hong Kong—internal systems have been strengthened to support multi-jurisdictional compliance and secure service delivery. Digital access controls, sandbox environments, and SOC/NOC frameworks help enforce information security and data governance across its operations.

During FY25, Paramatrix also scaled up its project governance capabilities through PMO oversight, DevSecOps integration, and automation of operational monitoring via proprietary platforms such as XSIGHT and EventJet. These systems enhance transparency in project execution and provide real-time audit trails and compliance assurance.

The Audit Committee regularly evaluates key internal audit observations and ensures that corrective actions are implemented without delay. The company also leverages external consultants for reviews on cybersecurity and regulatory compliance where required.

Based on the internal audit reports, management reviews, and oversight by the Audit Committee, the

Board affirms that the internal control systems of

Paramatrix Technologies Limited were adequate and operating effectively as on 31^st March, 2025. No material weaknesses or control deficiencies were reported during the year under review.

At Paramatrix Technologies Limited, our people represent the foundation of our success. The company has consistently nurtured a workplace culture that is collaborative, inclusive, and performance-oriented.

Employees across roles, locations, and functions are encouraged to work as one unified team, driven by shared values and a common purpose.

The work environment at Paramatrix blends professionalism with empathy. Our peoples practices go beyond routine engagement—they focus on sustaining meaningful interactions, mutual respect, and a culture of belonging. Whether in day-to-day collaborations or broader team dynamics, employees experience a sense of connection that reinforces trust and teamwork. We believe that the human side of technology is as important as technical expertise. As such, Paramatrix continues to strengthen its commitment to employee well-being, workplace harmony, and organizational resilience. The company promotes open communication, encourages creativity, and ensures that employees have the space to grow, express, and contribute.

During FY25, Paramatrix expanded its workforce to meet rising demand in areas such as AI, cybersecurity, cloud solutions, and digital transformation. With an employee base of over 234 professionals, the company provides its teams with opportunities to engage in high-impact projects across global markets, enabling skill development and leadership exposure.

Talent development remains a key strategic focus.

The company enables learning through challenging assignments, exposure to diverse technologies, and cross-functional roles that empower employees to grow with the organization. HR processes are designed to be transparent, merit-based, and aligned with business goals.

As of 31^st March, 2025, Paramatrix maintained a stable and collaborative industrial relations environment. The companys people-first approach, supported by strong internal communication and structured performance systems, ensures alignment between individual aspirations and organizational priorities.

This Management Discussion and Analysis (MD&A) contains forward-looking statements that reflect the current views, expectations, and assumptions of Paramatrix Technologies Limited with respect to its future performance, business strategies, and growth outlook. These statements are based on managements assessment of the prevailing economic and market conditions, internal plans, and other factors deemed relevant at the time of reporting.

However, forward-looking statements are inherently subjecttorisksanduncertainties,includingbutnotlimited to changes in technology trends, economic conditions, regulatory developments, competitive dynamics, and geopolitical events—both in India and in international markets where the Company operates. Actual results may differ materially from those expressed or implied in such statements.

While the Company believes the assumptions underlying these forward-looking statements are reasonable, it makes no assurance as to their accuracy or completeness. Paramatrix Technologies Limited undertakes no obligation to publicly revise or update any such statements in light of future developments, unless required under applicable law.

This analysis should be read in conjunction with the audited financial statements and other disclosures forming part of the Annual Report for the financial year ended .