Pelatro Ltd Management Discussions

For the financial year ended 31 March 2026 (FY26)

1. Economic Environment

Global Scenario

The global economy proved resilient during FY26 despite a backdrop of elevated uncertainty. The International Monetary Fund, in its January 2026 World Economic Outlook update, estimated global growth at approximately 3.3% in 2025 and projected a broadly similar 3.3% in 2026, with advanced economies expanding at around 1.5% and emerging-market and developing economies growing at just above 4%. This steady performance reflected a balancing of opposing forces: headwinds from shifting trade and tariff policies were offset by strong investment in technology · particularly artificial intelligence · together with fiscal and monetary support and broadly accommodative financial conditions. Global headline inflation continued to ease, declining to an estimated 4.1% in 2025 and projected at around 3.8% in 2026, enabling several central banks to begin normalising interest rates. Risks to the outlook nonetheless remain tilted to the downside, including the potential for renewed protectionism, geopolitical tensions and volatility in global financial markets.

Indian Economy

India retained its position as the fastest-growing major economy in the world. Based on the National Statistics Offices new national-accounts series (base year 2022-23), real GDP is estimated to have grown by 7.6% in FY26, up from 7.1% in FY25, with nominal GDP growth of 8.6%. Growth was underpinned by double-digit expansion in manufacturing, a strong services sector, the rationalisation of goods-and-services tax, long-pending labour reforms, lower personal income taxes, interest-rate cuts, moderating inflation and resilient rural demand. Indias continued macroeconomic and policy stability, together with accelerating digital adoption, provides a supportive operating and innovation environment for technology companies headquartered in the country.

Selected Macro Indicator	Prior	Latest
Global GDP growth (IMF)	3.3% (2025E)	3.3% (2026P)
Global headline inflation (IMF)	4.1% (2025E)	3.8% (2026P)
India real GDP growth (NSO)	7.1% (FY25)	7.6% (FY26)
India nominal GDP growth (NSO)	·	8.6% (FY26)

For technology providers serving the telecommunications sector, the operating environment remained constructive across the Companys markets in South and South-East Asia, the Middle East, Africa, Central Asia, Eastern Europe and the Caribbean, where operators continued to prioritise investment in subscriber monetisation, churn reduction and AI-led customer engagement.

Impact on the Company

The Companys business was not materially affected by the prevailing global macro-economic scenario during FY26, and management does not consider the current global environment to pose a material risk to the Companys operations. Several features of the business model underpin this resilience:

• Non-discretionary, mission-critical demand: the Companys software addresses core operator needs · subscriber retention, monetisation and revenue assurance · on which telecom operators continue to invest across economic cycles, as these capabilities directly protect and grow the operators own revenues.

• High revenue visibility: recurring and re-occurring revenue represented 82% of FY26 revenue, and approximately 82% of FY27 revenue was already contracted as at the date of reporting, insulating the Company from short-term demand volatility.

• Geographic diversification: revenue is spread across 46 networks in 35 countries, reducing dependence on any single economy, currency or region.

• Financial resilience: the asset-light, capital-light model and a conservative balance sheet, with a debt-equity ratio of 0.12, limit the Companys sensitivity to interest-rate and financing conditions.

The strength of the Companys FY26 performance · including 61% growth in revenue and 76% growth in EBITDA · was delivered against this global backdrop and is itself evidence of the limited impact of global macro-economic conditions on the business. The Company will nonetheless continue to monitor foreign-exchange movements and broader global developments as part of its ongoing risk-management process.

2. Industry Structure and Developments

The Company operates in the enterprise software market for the telecommunications industry, with a specialised focus on customer engagement, customer value management (CVM) and monetisation. Telecom operators worldwide manage large, dynamic subscriber bases in a low- margin, high-competition environment in which the ability to retain customers, increase usage and personalise offers is a primary determinant of profitability. Software platforms that enable contextual, real-time, data-driven engagement have therefore moved from being a discretionary investment to a core element of operators commercial technology stack.

The structural backdrop is supportive. The global mobile industry continues to add subscribers and data consumption, with growth concentrated in the emerging markets of Asia, Africa, the Middle East and adjacent regions where the Company is most active. In these markets the subscriber base is predominantly prepaid, customer-acquisition costs are rising and competition is intense, which is shifting operators strategic emphasis away from pure acquisition and toward growing the value of the existing base · elevating customer lifetime value to a board-level metric and making CVM a core, daily operating capability rather than a peripheral marketing function.

Key Industry Trends

• AI and automation: the rapid adoption of artificial intelligence and machine learning is reshaping the economics of campaign management, enabling operators to move from rule-based, manually configured campaigns toward automated, self-optimising, real-time engagement.

• Vendor consolidation: operators increasingly prefer partners that can deliver end-to-end capability across the subscriber lifecycle · from acquisition and recharge through to loyalty and retention · favouring established, broad-portfolio platform vendors.

• Shift to recurring models: the move toward subscription and managed-services commercial models is increasing the share of recurring, predictable revenue for platform vendors while raising barriers to entry.

• Monetisation and digital services: operators are extending beyond connectivity into adjacent digital services such as recharge, vouchers, sales-and-distribution and mobile money, broadening the addressable software opportunity.

Industry Data

The Companys addressable market size is around Rs. 12,000 crores across around 450 telcos. The Company, with 46 telcos as customers, has already penetrated around 10% of the existing number of telcos globally, thereby proving to be leader in market penetration with respect to products in

both CVM and Estel Divisions. Given the large market size across all the telcos, the Company have a huge upside opportunity to tap into more revenue, particularly on two counts:

a. The Company has 8 products across the two Divisions and the current average presence per customer is around 1.3 products. This means that there is a significant growth opportunity to sell more products to existing customers thereby increasing the average product per customer which will ultimately result in higher revenue per customer.

b. The Company also has an opportunity to increase the market penetration leading to larger customer base to cross sell our products and services.

The Company competes both with large global technology vendors and with specialised regional players, differentiating on domain depth, the breadth of the mViva platform, proven large-scale deployments and an increasingly AI-led product roadmap. Pelatro is positioned as a focused, platform-led specialist: its mViva customer engagement hub addresses contextual campaign management, loyalty management and data monetisation, while the Estel Division added during the year extends the Companys reach into prepaid recharge, voucher management, sales and distribution, and mobile money platforms · together allowing the Company to offer a broader, more integrated proposition to telecom operators.

3. Company Overview

Pelatro Limited is a global technology company that provides customer engagement and monetisation solutions to telecom operators and digital businesses. Its flagship mViva platform enables operators to understand subscriber behaviour and to design, execute and measure personalised, contextual engagement across the customer lifecycle. As at the end of the reporting period, the mViva platform was deployed across 46 telecom networks in 33 countries, processing data for approximately 1.5 billion consumers, with more than 20,000 campaigns executed across the Companys customer base.

Following the acquisition of the software business of Estel Technologies during the year, the Company reorganised its operations into two reportable business segments with effect from 1 July 2025 · the CVM Division, which comprises the established customer value management and engagement business built around the mViva platform, and the Estel Division, which comprises prepaid recharge, voucher management, sales and distribution, and mobile money platforms.

This structure establishes a second growth vertical and enables the Company to offer end-to-end telecom commercial solutions.

4. Business Model

Pelatro operates an asset-light, platform-led and inherently non-linear business model. The Companys core software products, that are already developed, are deployed many times across multiple operators, networks and geographies, with only minor upgradations and customisations. Because the incremental cost of serving additional subscribers, networks or customers is low relative to the additional revenue generated, the model carries high contribution margins and significant operating leverage · revenue can scale faster than the underlying cost base, which is the principal driver of the EBITDA-margin expansion the Company targets over the medium term.

The Companys platforms occupy a mission-critical position within an operators commercial operations: a meaningful share of an operators day-to-day customer interactions and revenuegenerating activity can run through the platform, and the system processes very large volumes of data in real time. This criticality creates high switching costs, deep multi-year relationships and a strong track record of customers extending deployments to additional networks and geographies within their group once the value proposition has been proven.

Revenue Model

The Company classifies its revenue into three categories that reflect its quality and predictability. The mix for FY26, compared with the prior year, is set out below.

Revenue Type	FY26	FY25
Recurring revenue	60%	67%
Re-occurring revenue	22%	20%
One-time revenue	18%	13%
Recurring + Re-occurring (Repeat revenue)	82%	87%

• Recurring revenue comprises license subscription, managed services, post-contract / annual support and maintenance and gain-share arrangements (where the Companys fee is linked to the incremental revenue the platform generates for the operator). It is contracted and the most predictable component of revenue.

• Re-occurring revenue comprises change requests, enhancements and configuration work that recur regularly across the customer base over the life of a contract, though it is not contractually fixed in the manner of recurring revenue.

• One-time revenue comprises upfront licence fees and initial implementation associated with new deployments.

Repeat revenue (recurring plus re-occurring revenue) represented 82% of FY26 revenue. The modest year-on-year shift toward one-time revenue principally reflects licence-led contributions during the year, rather than any weakening of the underlying recurring base. The high share of repeat business · reinforced by the fact that approximately 82% of FY27 revenue had already been contracted as at the date of reporting · underpins the visibility and predictability of the Companys revenue.

Commercial Models and Delivery

The Company offers customers a choice of commercial models · perpetual or term licence with annual maintenance, subscription, managed services, and outcome-based gain-share · selected according to customer preference and the nature of the engagement. Over recent years the commercial mix has shifted progressively toward recurring and subscription-based models, improving long-term revenue visibility and customer lifetime value. Delivery is largely centralised and substantially remote, with engineering and delivery operations based in India supported by the Companys international subsidiaries, allowing the Company to implement and operate large-scale deployments cost-efficiently.

Following the addition of the Estel Division, the Company now addresses two complementary parts of an operators technology stack · customer engagement and monetisation through the mViva CVM platform, and transaction-oriented capabilities such as prepaid recharge, voucher management, sales and distribution and mobile money through the Estel Division. This broadened footprint supports an end-to-end proposition and creates cross-sell opportunities across the combined customer base. The model remains capital-light and cash-generative, and is conservatively funded, with a consolidated debt-equity ratio of 0.12 as at 31 March 2026.

5. Opportunities and Threats

Opportunities

• Growing demand among telecom operators for Al-driven, automated customer engagement and monetisation, which the Company is addressing through the launch of the mViva Revenue Acceleration Platform with Agentic AI.

• Cross-sell and up-sell of the expanded product portfolio across the combined CVM and Estel customer base, deepening customer relationships and increasing revenue per account.

• High proportion of recurring and re-occurring revenue, providing a stable base from which to pursue incremental and new-logo growth.

• An asset-light, non-linear, platform-led business model that allows revenue to scale faster than costs, supporting margin expansion over time.

• Geographic white-space in existing and adjacent emerging markets where CVM adoption and digital monetisation remain at an early stage.

Threats and Challenges

• Concentration of demand in a relatively narrow customer base of telecom operators, where the loss, consolidation or financial stress of a large customer could affect revenue.

• Lengthy and lumpy enterprise sales and licensing cycles that can cause quarter-to-quarter variability in revenue and margins.

• Rapid technological change, including the pace of AI adoption, which requires continuous investment in product development to remain competitive.

• Foreign-exchange exposure arising from a substantial share of revenue and assets denominated in foreign currencies.

• Execution and integration risk associated with acquisitions, and the need to bring the newly acquired Estel Division to the Companys target profitability levels.

• Dependence on the ability to attract and retain skilled technology and delivery talent.

6. Operational Review

The Company delivered a strong operational performance in FY26, with broad-based growth

across its platform business and the successful integration of the newly acquired Estel Division. Key

operating highlights for the year include:

• Scale and reach: the Company is serving 46 telecom networks across 35 countries, reaching approximately 1.5 billion subscribers, while employing a delivery and engineering organisation of more than 490 people.

• Product innovation: in March 2026 the Company launched the mViva Revenue Acceleration

Platform™ with Agentic AI, incorporating AI Agents, a Co-Pilot and Zero Touch Campaigning™

a fully automated, large-language-model-based, end-to-end campaign orchestration capability that positions the Company at the forefront of AI-led customer engagement.

• Segment integration: the Estel Division was integrated and scaled during the year, strengthening the Companys position across prepaid recharge, voucher management, sales and distribution, and mobile money platforms, and establishing a distinct second growth vertical.

• Revenue quality: recurring revenue accounted for 60% of revenue and re-occurring revenue for a further 22% in FY26 (FY25: 67% and 20% respectively), with one-time revenue at 18% (FY25: 13%). The combined recurring and re-occurring base of 82% continues to provide a high degree of revenue stability and predictability.

7. Segment-wise Performance

The segment-wise financial highlights for FY26, on a consolidated basis, are set out below. The Estel

Division reflects nine months of operations following the effective date of acquisition of 1 July 2025.

Particulars (Rs. Crore)	CVM Division	Estel Division	Total
Revenue	116.57	21.66	138.23
EBITDA	28.09	3.39	31.48
EBITDA Margin (%)	24.10%	15.64%	22.77%

The CVM Division remained the Companys core profit engine, contributing the substantial majority of revenue and EBITDA at a healthy 24.10% margin. The Estel Division, in its first partial year within the Group, contributed Rs. 21.66 crore of revenue at a 15.64% EBITDA margin. Management expects the profitability of the Estel Division to improve toward the level of the CVM Division over the next 12 to 18 months as the new product versions are rolled out and operating scale is achieved.

8. Financial Performance Review

Consolidated Results

FY26 was a year of strong, profitable growth on a consolidated basis. Revenue from operations rose 61.2% to Rs. 13,823.01 lakhs, EBITDA grew 76.0% to Rs. 3,147.55 lakhs and profit after tax increased 52.2% to Rs. 1,810.48 lakhs. Excluding the exceptional item described below, profit after tax for the year would have been Rs. 1,936.04 lakhs, an increase of 62.8% over the prior year. The summarised consolidated statement of profit and loss is set out below..

Particulars (Rs. Lakhs)	FY26	FY25	FY24	YoY %
Revenue from Operations	13,823.01	8,576.87	5,499.22	+61.2%
Other Income	549.76	383.76	37.32	+43.0%
Total Income	14,372.77	8,960.63	5,536.54	+60.4%
Total Expenses (excl. D&A)	11,225.22	7,172.07	5,188.08	+56.5%
EBITDA	3,147.55	1,788.56	348.46	+76.0%
EBITDA Margin (%)	22.77%	20.85%	6.34%	+192 bps
Profit Before Tax (pre-exceptional)	2,099.33	1,309.08	1.67	+60.4%
Exceptional Items	(167.78)	-	-	-
Profit After Tax	1,810.48	1,189.35	(195.62)	+52.2%
PAT Margin (%)	13.10%	13.87%	-	-77 bps
Total Comprehensive Income	1,858.61	1,093.12	(221.90)	+70.0%
Diluted EPS (Rs.)	17.18	13.16	(5.15)	+30.5%

Exceptional item: An exceptional item of Rs. 167.78 lakhs was recognised during the year, representing an additional gratuity provision arising from the New Labour Codes notified by the Government of India on 21 November 2025, which consolidated twenty-nine existing labour laws. This is a one-time, non-cash charge and does not reflect the underlying operating performance of the business.

Standalone Results

On a standalone basis, revenue from operations increased to Rs. 9,555.83 lakhs (FY25: Rs. 6,149.79 lakhs). Standalone profit after tax was Rs. 330.12 lakhs (FY25: Rs. 510.22 lakhs); excluding the exceptional item of Rs. 167.78 lakhs, standalone profit after tax would have been Rs. 455.67 lakhs. The standalone finance cost of Rs. 408.81 lakhs includes Rs. 285.96 lakhs of interest on office lease liabilities recognised in accordance with Ind AS 116. The difference between the standalone and consolidated results principally reflects the contribution of the Companys foreign subsidiaries.

Particulars (Rs. Lakhs)	FY26	FY25	YoY %
Revenue from Operations	9,555.83	6,149.79	+55.4%
Total Income	10,206.93	6,380.91	+60.0%
Net Profit After Tax	330.12	510.22	-35.3%
Diluted EPS (Rs.)	3.13	5.64	-44.5%

Foreign subsidiaries. The foreign subsidiaries consolidated in the Groups results · Pelatro Pte. Ltd. and Estel Technologies International FZE, UAE · together reported total assets of Rs. 5,654 lakhs as at 31 March 2026, total revenue of Rs. 6,517 lakhs and profit after tax of Rs. 1,627 lakhs, reflecting the growing contribution of the Groups international operations.

9. Financial Position and Cash Flows

The consolidated balance sheet strengthened during the year. Total assets increased to Rs. 18,422.60 lakhs as at 31 March 2026 (31 March 2025: Rs. 13,706.48 lakhs), while total equity rose to Rs. 10,399.31 lakhs (31 March 2025: Rs. 7,944.78 lakhs), supported by retained earnings. The Companys balance sheet remains conservatively funded, with the consolidated debt-equity ratio reducing to 0.12 (FY25: 0.52).

Consolidated cash and cash equivalents closed at Rs. 1,519.16 lakhs (opening balance: Rs. 3,602.67 lakhs). The reduction primarily reflects acquisition-related cash outflows. Net cash generated from operating activities was Rs. 1,716.69 lakhs, net cash used in investing activities was Rs. 3,824.61 lakhs · driven mainly by the consideration paid for the Estel acquisitions · and net cash from financing activities was Rs. 24.41 lakhs.

Cash Flow Summary (Rs. Lakhs)	FY26	FY25	FY24
Net cash from operating activities	1,716.69	2,020.41	2,502.04
Net cash used in investing activities	(3,824.61)	(4,442.46)	(2,270.32)
Net cash from financing activities	24.41	5,270.03	(24.71)
Net increase / (decrease) in cash	(2,083.51)	2,847.98	207.02
Closing cash balance	1,519.16	3,602.67	754.69

10. Key Financial Ratios

The Companys key financial ratios on a consolidated basis, and the explanations for significant movements, are set out below.

Ratio	FY26	FY25	FY24
Return on Net Worth (%)	17.41%	14.97%	(15.48%)
Return on Capital Employed (%)	20.36%	18.37%	3.85%
Debt-Equity Ratio (times)	0.12	0.52	1.55
Current Ratio (times)	3.22	4.39	1.04
Debt service coverage ratio (times)	488.82	558.49	58.98
Return on Equity (%)	19.74%	26.00%	(11.00%)
Trade Receivable Turnover Ratio (times)	6.57	5.59	3.58
Trade Payable Turnover Ratio (times)	50.66	9.11	8.36
EBITDA Margin (%)	22.77%	20.85%	6.34%
Net Profit Margin (%)	13.10%	13.87%	-
Diluted EPS (Rs.)	17.18	13.16	(5.15)

• Return on Net Worth improved to 17.41% from 14.97%, reflecting higher profitability partly offset by the increase in the equity base.

• Debt-Equity Ratio reduced materially to 0.12 from 0.52, a movement in excess of 25%, driven by the repayment and reduction of borrowings together with the growth in total equity from retained profits.

• Diluted EPS rose 30.5% to Rs. 17.18, a movement in excess of 25%, on the strength of the increase in profit after tax during the year.

H. Acquisitions and Strategic Developments

During FY26 the Company acquired Estels software business and established the Estel Division as a second core growth vertical. This acquisition involved two transactions, namely, a Business Transfer Agreement executed with Estel Technologies Private Limited, India and a Share Purchase Agreement to acquire the shares of Estel Technologies International FZE, UAE, thereby making the UAE entity its wholly owned subsidiary. The acquisition was effective from 1 July 2025 and the contributions from the new Estel Division are reflected in the consolidated results from that date.

In addition, in March 2026 the Company launched the mViva Revenue Acceleration Platform with Agentic AI, a significant product milestone that brings AI Agents, a Co-Pilot and Zero Touch Campaigning to the Companys customer base and reinforces its differentiation in AI-led customer engagement.

12. Outlook

The Company enters FY27 with strong momentum and a high degree of revenue visibility. As at the date of reporting, approximately 82% of FY27 revenue had already been contracted, providing a robust foundation for the year ahead. Managements priorities for FY27 and beyond include:

• Driving adoption of the mViva Revenue Acceleration Platform and AI-led capabilities across the existing customer base and new logos.

• Scaling the Estel Division and improving its EBITDA margin toward the level of the CVM Division over the next 12 to 18 months.

• Expanding the Companys geographic footprint in existing and adjacent emerging markets.

• Continuing to leverage the asset-light, non-linear business model to expand margins, with management targeting consolidated EBITDA margins in the range of 26% to 30% over the next couple of years.

The Company expects its effective tax rate to remain in the range of 9% to 10% for a couple years.

While the inherently lumpy nature of enterprise licensing can cause variability between quarters, the high share of recurring and re-occurring revenue, the expanded product portfolio and the strong contracted order position underpin managements confidence in the medium-term outlook.

Forward-looking statements regarding contracted revenue, margin targets and the effective tax rate represent managements expectations as at the date of reporting and are subject to the risks and uncertainties set out in the Cautionary Statement below.

13. Risks and Concerns

The Company is exposed to a range of risks inherent to a technology business serving the global telecommunications sector. The principal risks, and the broad approach to their mitigation, are summarised below.

• Customer concentration risk: revenue is derived from a focused base of telecom operators. The Company mitigates this through geographic diversification, deeper engagement across the expanded product portfolio and a high share of recurring revenue.

• Revenue variability: enterprise licensing cycles can be long and uneven, leading to quarter-to- quarter variability. A growing recurring and re-occurring revenue base and a strong contracted order position reduce this exposure. The Management tracks the Companys growth on a year-on-year basis, as tracking the same on a sequential quarter-to-quarter basis will not be representative given the long sales and implementation cycles, which are inherent to the nature of the Companys products and the target customers.

• Technology and competitive risk: the pace of change in AI and customer-engagement technology requires sustained product investment. The Company addresses this through continuous innovation, illustrated by the launch of its Agentic AI platform.

• Foreign-exchange risk: a significant proportion of revenue and assets is denominated in foreign currencies, exposing the Company to currency movements. The Company monitors the foreign- exchange fluctuations very closely on an ongoing basis to determine any corrective steps.

• Acquisition and integration risk: the Company must integrate acquired businesses and realise expected synergies. The Estel integration progressed during the year, with margin improvement targeted over the medium term.

• Receivables and working-capital risk: the nature of enterprise contracts can extend collection cycles. The Company actively manages credit exposure and the timing of collections.

• Talent risk: the business depends on skilled technology and delivery professionals. The Company invests in talent acquisition, development and retention.

• Regulatory and compliance risk: the Company operates across multiple jurisdictions and is subject to evolving legal and regulatory requirements, including data-protection and labour regulations such as the New Labour Codes notified during the year. The Company closely monitors changes in regulatory and compliance.

14. Internal Control Systems and their Adequacy

The Company has in place internal control systems that are commensurate with the size, scale and nature of its operations. These controls are designed to provide reasonable assurance regarding the reliability of financial reporting, the safeguarding of assets, compliance with applicable laws and regulations, and the orderly and efficient conduct of business, including adherence to Company policies. The internal control framework is reviewed periodically, and the adequacy and effectiveness of internal financial controls are monitored by the Audit Committee of the Board. The statutory auditors, P. Chandrasekar LLP, Chartered Accountants, have expressed an unqualified opinion on both the standalone and consolidated financial statements for the year.

15. Human Resources and Industrial Relations

The Company regards its people as central to its ability to innovate and to deliver for its customers. As at the end of the year, the Companys workforce comprised more than 490 employees across its engineering, product, delivery and support functions. During the year the Company continued to invest in attracting, developing and retaining talent, and the integration of the Estel Division expanded the combined organisations capabilities. Industrial relations remained cordial throughout the year. On the CVM Division side, a total of 103 employees joined during the year while 49 employees left the organisation. The employees on the Estel Division side were all added during the year pursuant to the acquisition. Total headcount stood at 511 as on March 31, 2026.

16. Cautionary Statement

Statements in this Management Discussion and Analysis that describe the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events, and actual results could differ materially from those expressed or implied. Important factors that could cause a difference include, among others, economic and political conditions in India and the markets in which the Company operates, changes in government regulations, tax laws and other statutes, technological developments, foreign-exchange movements, and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events, except as required by applicable law.

Prepared on a consolidated basis unless otherwise stated. Figures are derived from the audited financial results for the year ended 31 March 2026 approved by the Board of Directors on 5 May 2026.