Plada Infotech Services Ltd Management Discussions

CORPORATE OVERVIEW

Plada Infotech Services Limited is engaged in providing comprehensive Business Process Outsourcing (BPO) solutions designed to support the operational and business requirements of its clients across multiple sectors.

The Company offers a diversified portfolio of services including account management, merchant acquisition, field support services, e-commerce solutions, business correspondence services, recruitment and payroll management software and technology-driven business solutions. The Companys objective is to deliver efficient, scalable and technology-enabled services that improve operational performance and customer satisfaction.

The Companys operations are spread across various regions of India, with significant business presence in Maharashtra and Tamil Nadu. The Company presently operates within India and continues to focus on strengthening its domestic market presence through long-term client relationships, quality service delivery and continuous operational improvements.

The Company maintains established business agreements with its customers and continues to focus on enhancing service quality through technology adoption, process optimisation and skilled human resources.

INDUSTRY OVERVIEW

The BPO and technology-enabled business services industry continues to evolve with increasing adoption of digital technologies, changing customer expectations and the growing need for businesses to improve operational efficiency.

Businesses across sectors are increasingly seeking specialised service providers to manage selected operational activities, enabling them to focus on their core business functions. The increasing use of digital payments, e-commerce platforms, technology-enabled customer engagement and distributed business networks is also creating demand for supporting services such as merchant acquisition, customer onboarding, field operations and business correspondence.

Technology is becoming increasingly important in the delivery of business support services. Digital platforms, automation, data-driven processes and technology-enabled monitoring can improve service efficiency, transparency and scalability. Service providers with the ability to combine operational capabilities with technology are therefore positioned to respond to changing client requirements.

The industry, however, remains competitive and subject to changes in technology, regulatory requirements, client preferences and pricing expectations. Service providers are required to continuously improve service quality, operational efficiency and technology capabilities to remain competitive.

GLOBAL ECONOMY OVERVIEW

The global economy remained resilient amid a challenging macroeconomic environment characterised by geopolitical tensions, trade uncertainties, elevated energy prices and changing financial conditions. While economic activity has remained resilient, global businesses continue to operate in an environment of cautious spending and evolving investment priorities.

Technological advancement, digitalisation and increasing adoption of Artificial Intelligence (AI) are emerging as important drivers of productivity and business transformation. The continued adoption of digital technologies is influencing business models and the delivery of technology-enabled services across sectors.

For the BPO and technology-enabled services sector, these developments present both opportunities and challenges. While economic uncertainty and cautious business spending may affect discretionary outsourcing and technology investments, the increasing focus on operational efficiency, cost optimisation, digitalisation and scalable service delivery can support demand for outsourced business processes.

For Plada Infotech Services Limited, which operates entirely within India, global economic developments have limited direct impact on its geographical operations. However, global economic conditions may indirectly influence client spending, business expansion, technology adoption and demand for outsourced services. The Company will continue to monitor the evolving economic environment and remain focused on operational efficiency, technology-enabled service delivery and client relationships.

INDIAN ECONOMY OVERVIEW

The Indian economy continued to demonstrate resilience during FY 2025-26, supported by domestic consumption, investment activity and continued growth in the services sector. Increasing adoption of digital technologies across various sectors is also contributing to changes in the manner in which businesses interact with customers and manage their operations.

The services sector remains an important contributor to Indias economic activity, with financial services, trade, communication, technology and other business services continuing to evolve. The increasing penetration of digital payments, e-commerce and technology-enabled services is supporting the growth of businesses operating across the digital and financial ecosystem.

Indias large consumer base, expanding digital infrastructure and increasing formalisation of business activities provide opportunities for service providers. Growth in digital transactions and merchant networks supports demand for services relating to merchant acquisition, customer onboarding, field support, business correspondence and other technology-enabled processes.

At the same time, the Indian economy remains subject to external factors including global economic conditions, geopolitical developments, commodity price movements and financial market conditions. These factors may influence business sentiment, consumer demand and investment activity.

For Plada Infotech Services Limited, Indias expanding digital ecosystem and continued growth in services provide a supportive environment for its BPO and technology-enabled business model. The Company remains focused on strengthening its service capabilities, improving operational efficiency and leveraging technology to meet the evolving requirements of its clients.

OUTLOOK

Plada Infotech Services Limited remains focused on leveraging the continued growth of Indias digital economy, increasing adoption of digital payments, expansion of merchant networks and growing demand for technology-enabled business support services. The Companys capabilities across merchant acquisition, account management, field support, business correspondence, e-commerce solutions and technology development provide opportunities to strengthen existing client relationships and expand its service offerings.

Going forward, the Company intends to focus on improving operational efficiency, strengthening technology capabilities, maintaining service quality and developing long-term client relationships. At the same time, the Company will remain mindful of risks arising from competitive pressures, regulatory changes, technological developments and broader economic conditions.

MARKET OPPORTUNITIES

Indias expanding digital economy and increasing adoption of digital payments, e-commerce and technology-enabled business processes provide opportunities for companies operating in the BPO and business support services sector.

The continued expansion of merchant networks and digital payment infrastructure creates opportunities for services relating to merchant identification, onboarding, documentation, field support and customer engagement. Similarly, the growth of e-commerce provides opportunities for retailer identification, onboarding, order processing, inventory-related support and other business processes.

The increasing adoption of technology by businesses also creates opportunities for technology-enabled service providers. Automation, digital platforms, data-driven processes and software solutions can enable businesses to improve operational efficiency and scalability.

For Plada Infotech Services Limited, these developments provide opportunities to strengthen its existing service offerings and develop solutions aligned with the changing requirements of clients, merchants and retailers. The Companys pan-India operational presence and established client relationships provide a foundation for expanding its service capabilities while maintaining focus on quality and efficient delivery.

THREATS & RISKS

1. Insourcing by Clients: Changes in business models, employment practices and client strategies may encourage certain clients to undertake activities internally rather than outsourcing them. Such a shift may affect demand for outsourced services and business volumes in certain service categories.
2. Macroeconomic and Geopolitical Uncertainty: Changes in domestic and global economic conditions, inflationary pressures, geopolitical developments and overall business sentiment may influence client spending and business expansion. Any slowdown in economic activity may impact demand for BPO, merchant acquisition and other business support services.
3. Competitive Intensity and Pricing Pressure: The BPO and business support services industry is competitive, with service providers competing on quality, technology, pricing and service capabilities. Increased competition and pricing pressure may affect margins, client retention and the Companys ability to expand its business.
4. Regulatory and Compliance Risks: Changes in applicable laws and regulations, particularly those relating to merchant onboarding, KYC requirements, data protection, employment practices and other compliance requirements, may increase operational complexity and compliance costs. Failure to comply with applicable requirements may adversely affect the Companys operations and client relationships.
5. Technology and Cybersecurity Risks: The Companys increasing reliance on technology and digital processes exposes it to risks relating to system disruptions, cybersecurity incidents, data privacy and unauthorised access. Any significant technology failure or security breach could disrupt service delivery and adversely affect customer confidence.
6. Client and Business Volume Risk: Changes in the business requirements, operating models or spending priorities of clients may affect the volume of services outsourced to the Company. Any reduction, termination or non-renewal of significant client engagements may have an impact on the Companys business and financial performance.

7. Human Resource and Operational Risks: The Companys service delivery depends on the availability of skilled and trained personnel and effective execution of operational and field activities. Employee attrition, recruitment and training challenges or operational disruptions may affect service quality and business continuity.

The Company seeks to manage these risks through established business processes, contractual arrangements with clients, compliance monitoring, technology-enabled systems, operational controls and continuous focus on service quality and customer satisfaction.

FINANCIAL PERFORMANCE DISCUSSION

The consolidated financial performance of the company for the financial year 2025-26 highlights steady top-line expansion accompanied by compression in bottom-line profitability.

Revenue from Operations: Consolidated revenue from operations grew to Rs. 7,281.99 lakhs for the financial year 2025-26, registering an increase of 8.45% compared to Rs. 6,714.61 lakhs recorded in the previous financial year. This growth reflects healthy operational volumes and scaling of business activities.

Net Profit After Tax (PAT): Net profit after tax for FY 2025-26 stood at Rs. 174.49 lakhs, representing a contraction of 7.37% compared to Rs. 188.38 lakhs reported in the previous financial year. This variance indicates margin pressures, potentially driven by shifts in operating expenses or cost structures during the period.

Financial Parameter	FY 2025-26 (Rs. in lakhs)	FY 2024-25 (Rs. in lakhs)	Variance (%)
Revenue from Operations	7,281.99	6,714.61	+8.45%
Net Profit After Tax (PAT)	174.49	188.38	-7.37%

SEGMENT PERFORMANCE

The company operates under a single primary business segment, aligning with its core operational focus and strategic objectives. Consequently, the consolidated financial results presented in the financial statements comprehensively reflect the performance of this single operating segment.

Operational Scope: The entire revenue from operations of Rs. 7,281.99 lakhs for FY 2025-26 (compared to Rs. 6,714.61 lakhs in the previous financial year) and the net profit after tax of Rs. 174.49 lakhs (compared to Rs. 188.38 lakhs previously) are attributable to this primary business segment.

Strategic Outlook: Operating within a unified segment enables the management to concentrate resources, optimize operational efficiencies, and maintain a targeted approach toward market expansion and risk management.

MATERIAL DEVELOPMENTS AFFECTING GOING CONCERN

The Board and Management confirm that there were no material changes or circumstances during FY26 that adversely affected the Companys ability to continue as a going concern. The following developments are relevant in the context of the Companys operating environment and future readiness

Labour and Employment Law Compliance

Changes in labour and employment laws, including the implementation and evolution of the applicable Labour Codes and related rules, may result in changes to the Companys employment practices, statutory obligations, compliance requirements and associated costs. The Company is required to monitor applicable developments and align its human resource policies and employment practices accordingly. Any significant changes in statutory benefits, wages, social security or working conditions may have an impact on the Companys operating costs and human resource management.

Technology and Innovation

Technology continues to be an important component of the Companys business model. The Company focuses on using technology to improve the efficiency, reliability and scalability of its service delivery.

The Companys technology-related initiatives include software solutions for recruitment and payroll management and technology-enabled processes supporting merchant acquisition, field operations, business correspondence and other business activities.

The Company intends to continue evaluating relevant technological developments and adopting suitable solutions that can improve operational efficiency, enhance service delivery and meet the changing requirements of its clients.

INTERNAL CONTROLS AND ITS ADEQUACY

The Company has established an adequate system of internal controls commensurate with the nature, size and complexity of its business operations. The internal control framework is designed to safeguard the Companys assets, ensure accuracy and reliability of financial and operational information, promote operational efficiency and ensure compliance with applicable laws, regulations and internal policies.

The internal audit is carried out by Internal Auditor, under the direction and oversight of the Audit Committee, to whom the Internal Auditor reports independently. Regular audits are conducted across business functions to assess control effectiveness and compliance with statutory and internal norms. Audit observations and action plans are reviewed by management and presented to the Audit Committee on a quarterly basis.

The Audit Committee of the Company closely monitors the implementation of recommendations and ensures the effectiveness of internal controls and risk management systems. In parallel, the statutory audit conducted by the Statutory Auditor includes an evaluation of internal financial controls over financial reporting, in accordance with Section 143 of the Companies Act, 2013.

The Company periodically reviews its internal control systems and processes to identify areas for improvement and strengthen operational effectiveness. Appropriate controls are implemented across key business processes, including financial reporting, client management, merchant onboarding, documentation, operational activities and technology-enabled processes. The management monitors the effectiveness of these controls and takes corrective measures, wherever required. Based on the Companys assessment, the internal control systems are considered adequate and operating effectively for the Companys present scale and nature of operations.

HUMAN RESOURCES

Human resources remain an important component of the Companys BPO and service delivery operations. The Company recognises the importance of skilled, trained and capable personnel in maintaining service quality and operational efficiency.

The Company focuses on recruitment, training, skill development and effective deployment of personnel in accordance with its operational requirements. The Company does not employ contractual employees within its organisational structure and follows a direct workforce model.

The Company continues to focus on maintaining a stable and capable workforce aligned with its business requirements and service delivery objectives.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with the applicable Accounting Standards and the requirements of the Companies Act, 2013, as applicable. The accounting policies adopted by the Company are consistently applied in the preparation of its financial statements and are adequately disclosed in the notes forming part of the financial statements.

There has been no material departure from the applicable accounting principles or prescribed accounting standards in the preparation and presentation of the financial statements for the year under review.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, plans or future prospects may constitute forward-looking statements. These statements are based on the Companys current expectations and assumptions and are subject to various risks and uncertainties.

Actual results may differ materially from those expressed or implied in such statements due to factors including changes in economic conditions, regulatory developments, competition, technology, client requirements and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as may be required under applicable laws and regulations.

For Plada Infotech Services Limited

Sd/- Shaileshkumar Damani Chairman & Managing Director DIN: 01504610

Sd/- Anil Mahendra Kotak Whole-time director & CFO DIN: 05266836

Date: September 03, 2026 Place: Mumbai