Prizor Viztech Ltd Management Discussions

Economic Overview GLOBAL ECONOMY

FY 2025-26 witnessed a mixed trajectory for the global economy, characterised by resilience amid persistent macroeconomic and geopolitical challenges. During the greater part of the year, economic growth remained supported by robust technology-led investments, easing financial conditions, including a relatively weaker US dollar, and accommodative fiscal and monetary policies. These positive factors helped offset the adverse impact of elevated trade barriers, geopolitical uncertainty and inflationary pressures that remained above target across several advanced economies.

The global economic landscape was shaped by evolving geopolitical developments towards the end of February 2026, following the outbreak of armed conflict in the Middle East. These developments influenced global trade and financial markets, contributing to movements in energy and commodity prices and reinforcing inflationary trends across several economies. Financial conditions adjusted in response to the changing macroeconomic environment while remaining broadly supportive by historical standards. Emerging markets, particularly commodity-importing economies with fiscal and external imbalances, experienced a relatively greater impact from these global developments.

According to the International Monetary Funds (IMF) World Economic Outlook (April 2026), the global economy expanded by 3.4% in 2025, supported by strong private investment and moderating inflationary pressures. Growth, however, remained uneven across regions, with emerging markets and developing economies (EMDEs) recording a growth rate of 4.4%, significantly outpacing the 1.9% growth achieved by advanced economies. A relatively weaker US dollar, coupled with synchronised monetary policy across major economies, supported stable capital flows and sustained demand across developing markets.

Outlook and Risks

According to the IMFs reference forecast, global economic growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, compared with approximately 3.4% in 2025. The anticipated slowdown is primarily attributed to elevated energy prices arising from the geopolitical conflict in the Middle East, which is expected to weigh on global economic activity.

The impact of these developments is expected to vary across regions. Commodity-importing emerging and developing economies are likely to face the greatest challenges due to higher import costs and existing macroeconomic vulnerabilities. While advanced economies are expected to demonstrate comparatively greater resilience, they remain exposed to tighter financial conditions and heightened risk perceptions following the escalation in geopolitical tensions. Conversely, commodity-exporting economies are expected to benefit, in the near term, from higher global energy and food prices.

Global headline inflation is projected to increase from 4.1% in 2025 to 4.4% in 2026 before moderating to 3.7% in 2027. The temporary increase is primarily driven by higher energy and food prices resulting from the ongoing geopolitical conflict. These projections underscore the continued sensitivity of global inflation to disruptions in commodity supply chains, particularly in economies where energy and food constitute a significant proportion of household expenditure.

Global trade remained relatively resilient during CY 2025-26, although the composition of trade flows evolved significantly in response to changing macroeconomic conditions. World trade volume growth is projected to moderate from 5.1% in 2025 to 2.8% in 2026 before recovering to 3.8% in 2027. The slowdown is primarily attributable to businesses advancing imports earlier in the year in anticipation of higher tariffs, while elevated trade barriers are expected to continue weighing on global trade over the medium term.

The impact of these trade disruptions is expected to gradually moderate as businesses diversify supplier networks, reconfigure global value chains and adapt to evolving trade dynamics. As supply chain realignments stabilise and the delayed effects of tariffs are reflected in retail prices, global trade conditions are expected to improve progressively. Both goods and services exports are projected to moderate during the forecast period; however, services trade is expected to remain comparatively resilient, supported by stronger structural growth drivers. At the same time, persistent geopolitical uncertainties are accelerating the adoption of regionalised supply chains and diversified sourcing strategies as businesses seek to strengthen operational resilience and mitigate supply chain risks.

Investment in artificial intelligence (AI) is expected to remain a key driver of productivity and operational transformation across industries. Organisations are increasingly adopting AI-enabled solutions to enhance process automation, optimise inventory management and improve demand forecasting, thereby strengthening operational efficiency and cost competitiveness. Continued fiscal support and ongoing investments in logistics infrastructure across developed economies are expected to further accelerate digital transformation and technology adoption.

Despite these positive structural trends, the global economic outlook remains subject to significant downside risks. A prolonged or broader geopolitical conflict, increasing fragmentation of the global economy, slower-than-anticipated productivity gains from artificial intelligence, or a resurgence of trade tensions could adversely impact global growth and increase financial market volatility. Elevated public debt levels and weakening institutional credibility further amplify these risks. Conversely, faster realisation of AI-driven productivity gains and a sustained easing of global trade tensions could provide meaningful upside to global economic growth.

Sources

INDIAN ECONOMY

Indias economy demonstrated notable resilience during FY 2025-26 despite a challenging global environment characterised by heightened trade tensions, geopolitical uncertainty and moderating demand across major economies. A sustained policy focus on strengthening domestic demand, coupled with ongoing trade reforms, helped mitigate the impact of external headwinds, including higher US tariff measures and broader global economic uncertainty.

According to the International Monetary Funds (IMF) World Economic Outlook (April 2026), Indias economy is estimated to have grown by 7.6% in CY 2025 and is projected to expand by 6.5% in CY 2026, both exceeding earlier expectations. The countrys growth outlook continues to be supported by the carry-forward momentum from 2025 and the substantial reduction in additional US tariffs on Indian exports, from 50% to 10%, which is expected to partially offset the economic impact of the geopolitical conflict in the Middle East.

India also recorded one of the most significant declines in inflation among major economies during the year. Headline inflation moderated from 4.6% in CY 2024 to 2.8% in CY 2025, primarily supported by improved food supply conditions. Core inflation, however, increased from 3.8% to 4.62% over the same period, reflecting underlying demand pressures. Headline inflation is projected to rise to approximately 4.7% in 2026 as domestic demand strengthens, while remaining within the Reserve Bank of Indias (RBI) target range of 2% to 6%. The Indian Rupee depreciated beyond Rs.90 against the US Dollar during 2025, influenced by capital outflows and the RBIs monetary easing cycle, although robust participation by domestic retail investors contributed to maintaining stability in the broader financial markets.

The Government continued to pursue a growth-oriented fiscal policy aimed at strengthening domestic consumption and sustaining capital formation. The Union Budget introduced direct tax relief for middle-income households to enhance disposable incomes, while public capital expenditure remained at 3.4% of GDP during the first half of the year, supported by continued investments in infrastructure development and green transition initiatives, including renewable energy. Fiscal consolidation also remained a priority, with the fiscal deficit narrowing to 4.8% of GDP in FY 2024-25 and targeted to reduce further to 4.4% of GDP in FY 2025-26, reflecting the Governments continued commitment to maintaining macroeconomic stability while supporting long-term growth.

Outlook and Risks

The ongoing geopolitical conflict in the Middle East and West Asia has emerged as a significant source of uncertainty for the global economy, disrupting critical trade corridors, intensifying energy security concerns and contributing to heightened volatility in global oil and gas prices. For India, these developments present risks through weaker growth among key trading partners, tariff-related trade disruptions and periodic volatility in capital flows, which could adversely impact export performance and investor sentiment. Higher energy and logistics costs have also increased input costs across industries globally, exerting pressure on inflation and business confidence and prompting multilateral institutions to adopt a more cautious near-term outlook.

On the domestic front, the Indian economy continues to face certain macroeconomic challenges, including the possibility of rising inflation as domestic demand strengthens, slower transmission of monetary policy easing into credit growth and moderation in tax revenue collections, which could place pressure on fiscal balances. However, Indias robust foreign exchange reserves, relatively stable inflation trajectory and continued commitment to fiscal consolidation provide meaningful resilience against these potential headwinds.

Infrastructure development continues to remain a key pillar of the Governments long-term growth strategy. The Union Budget for FY 2026-27 allocated ^12.22 lakh crore towards capital expenditure, representing an increase of 11.5% over the previous fiscal year, with a continued emphasis on expanding economic capacity and strengthening long-term infrastructure development. Looking ahead, the countrys next phase of economic growth is expected to be driven by strategic investments in emerging sectors such as artificial intelligence, digital public infrastructure, green hydrogen, semiconductors and advanced manufacturing.

The Government has also introduced several policy initiatives aimed at strengthening domestic demand, including direct tax relief for middle-income households, rationalisation of the Goods and Services Tax (GST) framework, enhanced support for the agriculture sector and targeted incentives for micro, small and medium enterprises (MSMEs). In addition, Indias external trade outlook remains favourable, supported by ongoing and proposed free trade agreements with key regions, including the European Union and New Zealand. These initiatives are expected to enhance market access for Indian exporters, strengthen foreign direct investment inflows and support the expansion of high-growth sectors such as electronics and advanced technology manufacturing.

Supported by strong macroeconomic fundamentals, sustained policy reforms, infrastructure-led development and rapid digital transformation, India remains well positioned to deliver long-term, sustainable economic growth. Backed by favourable demographic trends and resilient domestic demand, the country continues to strengthen its position as one of the worlds fastest-growing major economies and is expected to play an increasingly significant role in the global economic landscape.

Inflation: CPI and WPI

CPI has stayed below the RBIs 4 per cent tolerance level since Feb25, indicating price steadiness 3 . This was supported by healthy agricultural activity and stable food prices.

Industry Overview

GLOBAL VIDEO SURVEILLANCE AND SECURITY MARKET

According to Precedence Researchs Video Surveillance Market Industry Forecast (2026-2035), the global video surveillance market was valued at USD 84.12 billion in 2025 and is projected to reach approximately USD 94.43 billion in 2026. The market continues to witness robust growth, driven by rapid technological advancements, including the integration of artificial intelligence (AI), machine learning (ML), cloud computing and 5G connectivity, alongside increasing security requirements across manufacturing facilities, industrial establishments, public infrastructure and private premises.

Within the industry, Internet Protocol (IP)-based video surveillance systems accounted for the largest market share in 2025 and are expected to register the highest growth over the forecast period. The increasing adoption of IP surveillance solutions is supported by their superior image quality, scalability and seamless integration capabilities compared with conventional analogue systems, in addition to features such as high-definition video, remote monitoring, cloud-based storage and AI- enabled video analytics. The government and public safety segment also emerged as the largest end-user category, supported by increasing public safety initiatives, stringent national security regulations and the growing implementation of smart city programmes across global markets.

Regionally, Asia Pacific accounted for the largest share of the global video surveillance market in 2025 and is expected to remain the fastest-growing regional market through 2035. The regions growth is underpinned by rapid urbanisation, expanding smart city initiatives, increasing security awareness, rising surveillance adoption across residential and commercial sectors, and its well-established electronics and manufacturing ecosystem.

Key Growth Drivers

Demand across the global video surveillance industry continues to be driven by increasing security concerns, the expansion of smart city initiatives, rising crime rates and the growing need for real-time monitoring and automation across diverse end-use sectors. Governments are increasingly investing in citywide surveillance infrastructure, supported by the deployment of artificial intelligence (AI)-enabled traffic management and incident detection systems to enhance public safety and urban governance. At the same time, enterprises are accelerating the adoption of advanced surveillance technologies, including facial recognition, behavioural analytics and anomaly detection, to strengthen security frameworks while improving operational efficiency.

Technological advancements continue to reshape the industry, with modem surveillance deployments increasingly centred on high-resolution cameras, thermal imaging systems, panoramic multi-sensor devices and cloud-connected platforms that enable remote monitoring and centralised management across multiple locations. Organisations are also adopting integrated security ecosystems that consolidate video surveillance, access control and alarm management into unified command platforms, enhancing situational awareness, improving response capabilities and enabling more efficient security operations.

Key Trends

Key Trends

Smart city development remains a defining force in the industry, with cities worldwide investing heavily in video surveillance to improve safety, traffic systems and infrastructure through real-time, fact-based monitoring. Alongside this, rising incidents of theft, terrorism and vandalism are reinforcing the need for high-quality security systems, with video monitoring increasingly adopted across commercial, residential and industrial settings for both crime prevention and evidence collection.

AI integration is fundamentally transforming the market from passive monitoring into a proactive, intelligent security tool, with AI-enabled systems now able to detect unusual behaviour, identify patterns, classify objects and trigger alerts without continuous manual supervision. This addresses a long-standing industry challenge, historically high false alarm rates caused by non-threatening triggers such as animals, weather or shadows, which modern AI models can now filter out through context-aware filtering, improving operational efficiency while reducing response costs and personnel fatigue.

Challenges and Opportunities

Despite strong long-term growth prospects, the video surveillance industry continues to face challenges relating to the high cost of deploying advanced surveillance infrastructure. The adoption of next-generation surveillance solutions requires substantial upfront investment in high-resolution cameras, artificial intelligence (AI)-enabled analytics, data storage infrastructure and supporting network capabilities. These capital requirements, together with recurring maintenance, software upgrades and system integration costs, continue to present barriers to adoption, particularly for small and mediumsized enterprises with constrained technology budgets.

At the same time, evolving technology and changing customer preferences are creating significant growth opportunities for the industry. Video Surveillance as a Service (VSaaS) is gaining traction as a scalable, flexible and cost-effective deployment model that enables organisations to access advanced surveillance capabilities through cloud-based platforms with minimal on-site infrastructure. Subscription-based pricing models further reduce upfront capital expenditure while facilitating seamless system upgrades, remote accessibility and centralised monitoring. In parallel, the growing adoption of smart home technologies, including connected security cameras and video doorbells, is expanding demand for residential surveillance solutions. Increasing integration with Internet of Things (IoT) ecosystems is enhancing automation, remote monitoring and user convenience, positioning the residential segment as an important long-term growth driver as consumer awareness of home security continues to increase.

Outlook

According to Precedence Research, the global video surveillance market is expected to witness sustained long-term growth, driven by the increasing convergence of artificial intelligence (AI), cloud computing and Internet of Things (IoT) technologies across both enterprise and consumer applications. The market is projected to expand to approximately USD 267.39 billion by 2035, registering a CAGR of 12.26% during the period from 2026 to 2035. This growth reflects the continued expansion of intelligent surveillance solutions, supported by rising security requirements, ongoing digital transformation and increasing adoption of connected monitoring technologies across global markets.

Sources

INDIAN VIDEO SURVEILLANCE AND SECURITY MARKET

According to Mordor Intelligence, the Indian video surveillance market was valued at USD 4.40 billion in 2025 and is projected to reach USD 4.84 billion in 2026. The market continues to witness robust growth, supported by rising security requirements, rapid technological advancements and the increasing deployment of surveillance systems within integrated command-and-control centres that oversee traffic management, public safety and municipal services for central and state government agencies. Hardware remained the largest segment in 2025, accounting for over 62% of the market, while Internet Protocol (IP)-based surveillance solutions represented nearly 55% of total deployments. On-premises storage continues to dominate the market, primarily due to data sovereignty and regulatory requirements, although cloud-based storage solutions are witnessing gradual adoption.

Key Growth Drivers

The market is undergoing a significant technology transition as enterprises increasingly replace analogue surveillance infrastructure with IP-based systems equipped with edge analytics capabilities. Declining hardware costs have substantially narrowed the price differential between entry-level network cameras and high-definition analogue devices, accelerating the migration towards IP surveillance platforms. In addition, surveillance devices are increasingly being equipped with embedded graphics processing units (GPUs) capable of performing object detection and analytics at the edge, thereby reducing bandwidth consumption and lowering reliance on centralised processing infrastructure. These technological advancements have shortened equipment replacement cycles to approximately five years, supporting recurring demand for surveillance hardware. Regulatory mandates continue to provide a stable source of demand, with financial institutions required to maintain continuous recording, facial image clarity and tamper detection across automated teller machines (ATMs), while educational institutions are increasingly mandated to implement comprehensive campus surveillance with prescribed data retention periods.

USD 4.40 Billion

Market Size (2025)

USD 4.84 Billion

Forecast Market Size (2026)

USD 7.77 Billion

Forecast Market Size (2031)

9.94% CAGR

Forecast Growth Rate (2026 - 2031)

Key Trends
Evolving Deployment Models & Public Infrastructure Programmes	Data Protection & Cybersecurity Requirements
The Smart Cities Mission continues to allocate dedicated budgets for integrated surveillance, traffic analytics, and emergency response systems, giving suppliers multi-year order visibility. Cameras now form the sensor layer feeding command centres that also manage lighting, parking, and waste services, while new tenders increasingly require open-protocol, ONVIF-compliant platforms.	Data-sovereignty provisions under the Digital Personal Data Protection Act keep most large installations onpremises, even as cloud-based systems gain traction among smaller firms. Compliance costs, including impact assessments, consent documentation, and in-India storage, have raised project budgets by 8-12%, though government projects enjoy broad exemptions favouring public deployments.
Pandemic-driven demand for remote monitoring has normalised subscription-based VSaaS platforms bundling storage, analytics, and health monitoring, converting capital expense into operating expense for budgetconscious SMEs. Hybrid architectures are now emerging, balancing on-premises footage with cloud-based analytics to meet both compliance and scalability needs.	Cybersecurity concerns over firmware vulnerabilities in Chinese-origin devices, including a 2024 flaw rated CVSS 10.0, have prompted mandatory penetration testing and encryption on all cameras sold in India. Procurers now score bids on cybersecurity compliance, while General Financial Rules 2017 bans exclude several Chinese brands.

Opportunities

The competitive landscape is also undergoing a structural transformation as evolving regulatory and compliance requirements reshape procurement preferences. Restrictions on the participation of certain Chinese manufacturers in public sector projects have created opportunities for domestic manufacturers and global technology providers to strengthen their market presence. At the same time, organisations continue to incur additional implementation costs associated with segregating legacy surveillance infrastructure and upgrading network architecture to meet evolving security and compliance standards. Furthermore, uncertainty surrounding the implementation of the Digital Personal Data Protection framework and the regulatory treatment of biometric analytics continues to influence investment decisions across the sector.

These evolving market dynamics are creating significant opportunities for solution providers and system integrators. Video Surveillance as a Service (VSaaS) has emerged as the fastest-growing segment of the market, registering a projected CAGR of 11.19%, according to Mordor Intelligence. The subscription-based delivery model offers organisations a scalable and cost-efficient approach to deploying advanced surveillance capabilities while reducing upfront capital expenditure. In parallel, increasing outsourcing of surveillance system maintenance and compliance monitoring is expected to generate sustained demand for long-term service and maintenance contracts.

11.19% CAGR

Forecast Growth Rate for VSaaS (2026 - 2031)

Outlook

According to Mordor Intelligence, the Indian video surveillance market is projected to reach USD 7.77 billion by 2031, expanding at a CAGR of 9.94% during the forecast period. Future growth is expected to be supported by continued reductions in IP surveillance hardware costs, expanding smart city infrastructure, strengthening data protection and cybersecurity regulations, and the increasing preference for compliant, domestically manufactured surveillance solutions. These structural trends are expected to create sustained growth opportunities across both public and private sector markets.

Source

INDIAN CCTV MARKET

According to Mordor Intelligences CCTV Market Share and Size Forecast, the Indian CCTV market was valued at USD 4.80 billion in 2025 and is projected to grow from USD 5.75 billion in 2026 to USD 14.25 billion by 2031, registering a CAGR of 19.88% during the forecast period (2026-2031). Market growth is being driven by the continued implementation of the Smart Cities Mission, the introduction of mandatory public safety regulations and the Governments emphasis on indigenous manufacturing through the Standardisation Testing and Quality Certification (STQC) mandate. These initiatives are strengthening urban infrastructure, enhancing public safety and encouraging domestic technology manufacturing, thereby creating a favourable environment for sustained industry expansion. In addition, the Governments continued focus on digital transformation and smart infrastructure is accelerating the adoption of advanced surveillance technologies across urban planning and public safety ecosystems.

Demand for CCTV solutions continues to remain robust, supported by the extensive deployment of surveillance infrastructure across urban centres and transportation networks. Approximately 76,000 surveillance cameras have already been installed across 100 smart cities, while ongoing capacity expansion and modernisation initiatives at airports, metro rail networks and other public infrastructure projects continue to generate significant demand. The increasing integration of artificial intelligence (AI), advanced analytics and intelligent monitoring capabilities into surveillance systems is further enhancing operational efficiency and strengthening the long-term growth prospects of the market.

India CCTV Market

Market Size in USD Billion

Market Landscape

Government Smart City Surveillance Push

The Smart Cities Mission continues to transform surveillance infrastructure from conventional monitoring systems into integrated urban management platforms. As of March 2025, approximately 90% of Smart Cities Mission projects, representing investments of INR 1.44 trillion (USD 16.06 billion), had been completed, with nearly 76,000 surveillance cameras integrated into command-and-control centres supporting traffic management, waste management and emergency response services. Standardised procurement frameworks increasingly favour suppliers capable of delivering interoperable surveillance solutions, while cloud-enabled command centres facilitate efficient resource utilisation and predictive analytics, sustaining long-term demand across the Indian CCTV market.

Mandatory Surveillance Regulations for Public Spaces

Regulatory mandates are emerging as a significant driver of market demand. Several state governments have introduced legislation requiring the installation of CCTV systems across commercial establishments and public spaces. Karnatakas Public Safety Enforcement Act, for instance, mandates establishments with prescribed monthly footfall to integrate surveillance systems with law enforcement networks, while similar regulations have been introduced following judicial directives for surveillance coverage across public institutions. Standardised technical specifications relating to video quality, encryption and data retention are further strengthening product quality and encouraging the adoption of compliant surveillance solutions.

Rapid Expansion of Airports and Metro Infrastructure

The continued expansion and modernisation of transportation infrastructure is generating sustained demand for advanced surveillance systems. Airports, metro rail networks and other transit facilities are increasingly deploying integrated surveillance platforms incorporating facial recognition, biometric authentication and AI-enabled threat detection technologies. Large-scale infrastructure projects, including airport modernisation and metro rail expansion programmes, are expected to create long-term opportunities for surveillance equipment manufacturers, technology providers and system integrators through multi-year deployment and maintenance contracts.

Growing Adoption of AI-Enabled Surveillance Solutions

Artificial intelligence (AI) continues to reshape the CCTV industry by enabling real-time analytics, automated incident detection and predictive monitoring capabilities. Government agencies are increasingly deploying AI-powered surveillance systems to improve road safety, strengthen law enforcement and enhance public security. Advancements in computer vision technologies have significantly improved the accuracy of applications such as traffic violation detection and facial recognition, while the growing adoption of retrospective video analytics is accelerating the replacement of legacy analogue surveillance systems with intelligent IP-based platforms.

Data Privacy and Regulatory Compliance

The implementation of the Digital Personal Data Protection (DPDP) Act, 2023 has introduced enhanced compliance requirements relating to data privacy, consent management, encryption standards and grievance redressal mechanisms. These regulatory changes are increasing compliance obligations for both end users and technology providers, particularly in applications involving biometric data. While uncertainty surrounding certain implementation guidelines has resulted in temporary delays in procurement decisions, the increasing adoption of privacy-by-design technologies, including selective recording and image anonymisation, is expected to strengthen long-term confidence in surveillance deployments and support the development of a more secure and compliant industry ecosystem.

USD 4.80 Billion

Market Size (2025)

USD 5.75 Billion

Forecast Market Size (2026)

USD 14.25 Billion

Forecast Market Size (2031)

19.88% CAGR

Forecast Growth Rate (2026 - 2031)

Source

GOVERNMENT INITIATIVES

Make in India

The Government of India continues to strengthen the domestic electronics manufacturing ecosystem through the Make in India initiative, which focuses on attracting investments, developing manufacturing infrastructure and fostering innovation to position India as a global electronics manufacturing hub. The programme is further supported by complementary state- level initiatives aimed at enhancing self-reliance, expanding domestic production capabilities and strengthening indigenous technological expertise across the electronics industry.

Production Linked Incentive (PLI) Scheme for Electronic Components

In March 2025, the Union Cabinet approved a dedicated Production Linked Incentive (PLI) Scheme with an outlay of Rs.22,919 crore for the manufacturing of electronic components, sub-assemblies and capital equipment. The scheme seeks to deepen domestic value addition across the electronics supply chain by encouraging investments in the production of critical active and passive electronic components, thereby strengthening Indias manufacturing competitiveness and reducing import dependence.

Modified Electronics Manufacturing Clusters (EMC 2.0)

The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme continues to support the development of world-class manufacturing infrastructure for the electronics sector. With a Government commitment of Rs.3,762 crore, the scheme is expected to attract investments of approximately Rs.209.10 billion while generating employment for more than 50,000 people upon full implementation. Investments in shared infrastructure, including power distribution, internal roads and common facilities, are expected to provide a strong foundation for the growth of electronics, surveillance and CCTV manufacturing in India.

India Semiconductor Mission

The India Semiconductor Mission, launched by the Ministry of Electronics and Information Technology (MeitY) in 2021 with an outlay of Rs. 76,000 crore, continues to play a pivotal role in developing a robust domestic semiconductor and display manufacturing ecosystem. The initiative supports semiconductor design, promotes indigenous intellectual property development, encourages collaborative research and facilitates skill development, thereby strengthening Indias long-term capabilities across the semiconductor value chain.

Mandatory STQC Certification for CCTV Cameras

Effective April 2025, the Standardisation Testing and Quality Certification (STQC) Directorate made certification mandatory for all CCTV cameras sold in India. The initiative seeks to ensure compliance with prescribed quality, cybersecurity and performance standards, improve product reliability, align domestic products with international benchmarks and strengthen user privacy and data security across surveillance deployments.

State and Institutional Initiatives

State governments and public institutions continue to introduce initiatives that promote the adoption of advanced surveillance technologies. The Ministry of Electronics and Information Technology notified the Digital Personal Data Protection Rules, 2025, establishing a citizen-centric regulatory framework for the protection of digital personal data while encouraging innovation. In parallel, the One Nation, One Challan initiative is integrating CCTV-enabled traffic monitoring with centralised platforms such as VAHAN and SARATHI to enhance traffic enforcement and verification processes. Supporting this objective, the Ahmedabad Traffic Police deployed 32 patrol vehicles equipped with dashboard cameras and 28 mobile AI-enabled surveillance units, further strengthening technology-driven public safety and traffic management.

Source

Company Overview

Prizor Viztech Limited is engaged in the business of providing security and surveillance solutions through the manufacturing of a comprehensive range of IP cameras, analogue cameras and AI-enabled advanced surveillance cameras catering to diverse end-user segments, including retail, government, education and infrastructure. Incorporated in 2017, the Company was founded by its Promoters, Ms. Mitali Dasharathbharthi Gauswami and Mr. Gauswami Dasharathbharthi Gopalbharthi, who bring over seven and eleven years of industry experience, respectively. Under their leadership, supported by an experienced management team with expertise across technology, marketing and sales, the Company has continued to strengthen its presence in the surveillance industry.

In 2022, the Company diversified its product portfolio by entering the television, monitor and touch panel display segment. These products are manufactured through third-party manufacturing partners and marketed under the Prizor brand, enabling the Company to offer an integrated ecosystem spanning surveillance and display solutions. The portfolio is further complemented by video management software that enables customers to centrally monitor and manage surveillance operations through a unified platform.

The Company has established an extensive pan-India distribution network, with its products reaching customers across 21 states and more than 3,000 tehsils. It has developed a particularly strong presence in Maharashtra, Gujarat, Tamil Nadu, Delhi, the Andaman & Nicobar Islands and Jammu & Kashmir, supported by a network of over 11,000 dealers that provides deep market penetration and last-mile connectivity. The Companys geographic footprint has expanded significantly from its initial presence across 17 states and two Union Territories, reflecting its continued focus on strengthening market reach and customer accessibility.

The evolving regulatory landscape and the Government of Indias continued emphasis on indigenous manufacturing under the Make in India initiative have created significant opportunities for domestic surveillance manufacturers. The Company has positioned itself to benefit from these structural developments by strengthening its portfolio of indigenously developed surveillance solutions. During FY 2025-26, the Company obtained BIS-ER certification through an STQC-accredited laboratory, reinforcing its commitment to quality, regulatory compliance and product reliability. It also continues to expand its portfolio of Al-enabled surveillance solutions while progressing towards greater backward integration through its Memorandum of Understanding (MoU) with IndieSemic for the supply of System-on-Chip (SoC) components, strengthening supply chain resilience and supporting its long-term manufacturing strategy.

Product Portfolio

We assemble a diverse range of surveillance and security cameras ranging from basic CCTV systems and more specialised surveillance solutions for commercial properties. These are supplemented with technical support and annual maintenance services. Alongside this, we offer televisions, touch panels and monitors, manufactured by third parties under our brand name. Quality control, testing and evaluation of our products take place at our workshops.

Security and Surveillance Solutions	Televisions, Touch Panels and Monitors
HD Camera	Interactive Panels
Face Detection Camera	Monitors
Network ANPR Camera	LED Televisions
Network Video Recorder
Mobile Digital Video Recorder

The Company delivers customized surveillance systems and end-to-end security solutions across diverse sectors.

Review of Operations

FY26 was a year of accelerated scale and expanding capability for Prizor Viztech. Revenue from operations grew 108.1% year-on-year to Rs. 14,794.1 Lacs, building on a revenue CAGR of 120.1% since FY23. EBITDA rose 121.0% to Rs. 3,321.9 Lacs, with the EBITDA margin improving to 22.5% from 21.1% in the previous year, while Profit After Tax grew 104.5% to Rs. 2,075.8 Lacs. Earnings per share nearly doubled to Rs. 19.41 from Rs. 10.40, reflecting the strength of this performance even as the Companys return ratios, ROCE at 47.4% and ROE at 38.0%, underscored the efficiency of its capital deployment through a period of rapid expansion.

Segment performance was led by the Companys core CCTV camera business, which grew 152% during the year and accounted for the overwhelming majority of revenue. The display products segment, while smaller in scale, also contributed to overall growth, together forming a diversified base across the Companys surveillance and display offerings.

Operationally, the year was marked by continued progress on manufacturing and distribution. The Companys dealer network expanded from 6,100 in FY25 to over 11,000 in FY26, extending Prizors reach across 21 states and more than 3,000 tehsils. At its Gandhinagar facility, the Company advanced from an assembly-led operation toward a fully integrated manufacturing base, commissioning an SMT line capable of producing 50 lakh PCB units per annum and building out assembly infrastructure with capacity for 16 lakh CCTV cameras per annum, expandable up to 40 lakh units. This backward integration was further supported by ongoing work with IndieSemic to develop an indigenous SoC chip, positioning the Company to reduce reliance on imported components over time.

Taken together, FY26 reflects a year in which Prizors growth was matched by deliberate investment in the operational foundations, manufacturing capacity, distribution reach and product certification, needed to sustain that growth into the years ahead.

Financial Performance on Consolidated basis

Particulars (Rs. Lacs)	FY26	FY25	Growth
Revenue	15,298.80	7,109.37	115.19%
EBITDA	3,381.23	1,507.15	124.36%
PAT	2,094.28	1014.84	106.36%

Key Financial Ratios

Particulars	FY26	FY25	Deviation	Reason for Deviation
Current Ratio (times)	1.63	5.08	-67.97%	The decrease in ratio is due to a substantial increase in the Companys newly raised fund.
Debt-Equity Ratio (times)	0.56	0.18	219.96%	The increase in ratio is due to Substantial increase in the companys newly raised fund.
Debt Service Coverage Ratio (times)	0.95	3.77	-74.88%	The decrease in ratio is due to Substantial increase in the companys newly raised fund.
Return on Equity Ratio (%)	38.0%	31.3%	21.41%	The increase in ratio is due to Substantial increase in the companys newly raised fund.
Net Profit Ratio (%)	14.02%	14.27%	-1.78%	-
Return on Capital Employed (%)	47.4%	37.2%	27.42%	The increase in ratio is due to Substantial increase in the companys newly raised fund.
Operating Margin (%)	22.5%	21.1%	6.64%	-
Debtors Turnover Ratio (in days)	67.08	60.89	10.22%	-
Inventory Turnover Ratio	3.77	3.32	13.40%	-
Net Profit Margin (in %)	14.03	14.28	-1.75%	-
Return on Net Worth	31.70	23.70	31.55%	The increase in ratio is due to Substantial increase in the companys newly raised fund.

SWOT ANALYSIS Strengths

Diverse Product Portfolio Across Sectors Prizors product range spans IP cameras, analog cameras and Al-enabled cameras, alongside LED TVs, monitors and touch panels, serving retail, government, education and infrastructure sectors. This breadth allows the Company to address varied customer needs from a single brand, reducing dependence on any one product line or vertical for growth.

Early Regulatory Compliance Prizor holds BIS-ER certification through STQC-accredited labs, positioning it among the early certified players as Indias surveillance industry undergoes a structural shift toward compliant, indigenous manufacturing. This certification, achieved ahead of many competitors, strengthens the Companys credibility with institutional and government buyers who increasingly prioritise verified, secure products.

Extensive Distribution Network With over 11,000 dealers across 21 states reaching more than 3,000 tehsils, Prizors distribution network gives it deep last-mile access across the country. This scale of reach is difficult for newer entrants to replicate quickly, making distribution a durable competitive advantage.

Strong Financial Track Record The Company has delivered a revenue CAGR of 120.1% between FY23 and FY26, while maintaining EBITDA margins consistently between 21% and 23%. This combination of rapid growth and stable profitability reflects disciplined execution rather than growth achieved at the expense of margins.

Experienced Promoter Leadership Chairman and Managing Director Ms. Mitali Dasharathbharthi Gauswami and WholeTime Director Mr. Gauswami Dasharathbharthi Gopalbharthi bring 7 and 11 years of industry experience, respectively. Their continued involvement in strategic direction has shaped the Companys growth path and its ability to respond to evolving market and regulatory conditions.

Advancing Backward Integration Prizor has established in-house PCB manufacturing through its SMT line and is working with IndieSemic to develop an indigenous SoC chip. This progression toward full backward integration is expected to reduce dependence on external suppliers and strengthen control over quality, cost and supply continuity over time.

Weaknesses

Dependence on Third-Party Manufacturing for Certain Products The Companys LED TV, monitor and touch panel segment continues to rely on third-party manufacturers, even as its core surveillance products are manufactured in-house. This reliance limits Prizors control over quality, cost and production timelines for a meaningful part of its overall portfolio.

Working Capital Intensity The scale of the Companys inventories and trade receivables relative to its overall business size points to a degree of working capital intensity. Sustained revenue growth of the magnitude Prizor has posted can place continued pressure on cash flow unless working capital cycles are carefully managed.

Geographic Concentration While Prizor has expanded to 21 states, its particularly strong presence remains concentrated in a smaller set of states, including Maharashtra, Gujarat, Tamil Nadu, Delhi, Andaman & Nicobar Islands and Jammu & Kashmir. This concentration means performance in these core markets carries outsized influence on overall results, even as national reach continues to widen.

Opportunities

Policy Tailwinds from STQC Enforcement STQC enforcement has effectively barred non-certified foreign brands from Indias surveillance market, creating sustained, policy-backed demand for certified domestic manufacturers like Prizor. This regulatory shift is structural rather than cyclical, offering a durable growth opportunity rather than a temporary boost.

Rising Demand for Data Sovereignty Growing concerns over data privacy and foreign hardware vulnerabilities are accelerating institutional demand for indigenously certified surveillance systems across government, banking, education and infrastructure sectors. Prizors early certification and India-based manufacturing position it well to capture this demand as it grows.

Expansion into Tier 2 and Tier 3 Towns Smaller towns and cities represent a significant, largely untapped growth frontier for Prizors asset-light, dealer-led distribution model. Each new pin code added to the network brings both a new last-mile installer and recurring camera demand, offering a scalable path to continued expansion.

Movement Up the Value Chain Through AI The development of the PRIZOR PLUS AI camera series, featuring facial recognition, ANPR and behaviour analysis, gives Prizor a route to higher-value products beyond basic surveillance hardware. This shift could improve margins and deepen customer relationships as demand for intelligent surveillance grows.

Full Backward Integration Through the IndieSemic Partnership Progress on an indigenous SoC chip under the IndieSemic MoU could eventually allow Prizor to manufacture a fully integrated product, from chip to camera, entirely within India. This would reduce reliance on imported components and strengthen both margins and supply chain resilience over the medium term.

Threats

Competitive Pressure Indias surveillance and electronics manufacturing industry remains highly fragmented, with both organised and unorganised players operating in a market that has low barriers to entry in several segments. This fragmentation could pressure pricing and margins as competition intensifies.

Global Supply Chain Disruptions Until backward integration and the IndieSemic partnership are fully realised, Prizor remains dependent on global supply chains for semiconductors and other components. Disruptions in these supply chains could affect production timelines and costs in the interim.

Macroeconomic and Geopolitical Risks Broader risks, including geopolitical uncertainty and global trade tensions, could affect input costs, component availability or overall investment sentiment. While largely outside the Companys control, these factors could create headwinds for growth or margin stability in certain periods

Strengths	Weaknesses
Diverse product portfolio across sectors	Dependence on third-party manufacturing for TVs/panels
Early regulatory compliance (BIS-ER, STQC)	Working capital intensity
Extensive distribution network	Geographic concentration
Strong financial track record
Experienced promoter leadership
Advancing backward integration

Opportunities	Threats
Policy tailwinds from STQC enforcement	Industry fragmentation and low entry barriers
Rising demand for data sovereignty	Global supply chain dependencies
Expansion into Tier 2 and Tier 3 towns	Macroeconomic and geopolitical risks
Movement up the value chain through AI
Full backward integration via IndieSemic

Risk Management

The Company recognises that effective risk management is fundamental to sustaining long-term business performance and protecting stakeholder value. It has established a comprehensive risk management framework designed to identify, assess, monitor and mitigate risks across its operations. The framework ensures that appropriate internal controls are maintained, key risks are continuously monitored and emerging challenges are addressed in a timely and proactive manner. Through a structured risk assessment process that evaluates risks based on their likelihood and potential impact, the Company remains well positioned to respond strategically to an evolving business environment while strengthening operational resilience and supporting sustainable growth.

Key Risks and Mitigation Strategies

Risk	Description	Mitigation Strategy
Industry Fragmentation	The industry remains highly fragmented, with organised and unorganised players operating under low barriers to entry in several segments, intensifying price competition	Continued investment in product quality, ISO 9001:2015 certification and aftersales service to differentiate from unorganised competitors
Supply Chain Dependency	Reliance on global supply chains for semiconductors and key components exposes the Company to potential disruptions and cost volatility	Progressing backward integration through in-house PCB manufacturing and the IndieSemic MoU for an indigenous SoC chip
Regulatory Evolution	Certification and compliance requirements continue to evolve, requiring ongoing investment to remain aligned with new standards	Proactive alignment with STQC and BIS- ER standards, with certification secured ahead of regulatory deadlines
Competitive Intensity	Domestic peers and the potential re-entry of foreign players following certification could increase competitive pressure	Deepening customer relationships through consistent quality, timely delivery and an expanding product range, including AI-enabled cameras
Macroeconomic and Geopolitical Uncertainty	Broader global risks, including trade tensions and geopolitical instability, could affect input costs or investment sentiment	Maintaining a disciplined, measured approach to capital allocation and execution

Environment, Health and Safety (EHS)

The Company continues to ensure strict compliance with applicable health and safety regulations across all its operations. It has consistently complied, and remains committed to continuing compliance, with all applicable environmental laws, rules, and regulations, as well as other related statutory requirements. Further, the Company has obtained all material environmental consents, approvals, and licences from the relevant governmental authorities that are necessary for the continued conduct of its business operations.

This is supported by Prizors ISO 14001:2015 certification for environmental management, alongside its ISO 45001:2018 certification for occupational health and safety, both of which are already part of its certification portfolio. The Companys RoHS compliance further reinforces its commitment to environmentally responsible manufacturing, ensuring adherence to global standards on the restriction of hazardous substances across its product range.

Material Developments in Human Resources

The Company considers its employees to be one of its most valuable assets and continues to focus on attracting, developing and retaining a talented workforce aligned with its long-term business objectives. Its talent acquisition strategy emphasises recruiting individuals with the skills, experience and competencies required to support its operations while maintaining a balanced workforce comprising experienced professionals and young talent. This approach enables the Company to benefit from organisational stability, knowledge sharing and continuous innovation. As on 31 March 2026, the Company had a total workforce of 157 employees.

The Company remains committed to fostering an inclusive, respectful and collaborative work environment that promotes employee well-being and professional development. It continues to address employee concerns proactively while providing regular training programmes and skill development initiatives aimed at strengthening technical capabilities,

communication, problem-solving and teamwork. The Company also encourages employees to pursue higher education and professional qualifications, supporting their long-term career development while building a future-ready workforce.

Adequacy of Internal Control Systems

Prizor Viztech maintains a robust internal control framework commensurate with the scale and nature of its operations. The Company believes that protecting assets and sustaining business efficiency are best achieved through clearly defined internal controls and standardised operational processes. Its internal control and risk management system is structured in line with the principles and criteria laid out in the organisations corporate governance code, forming an integral part of the overall organisational structure. The systems effective functioning relies on the coordinated efforts of personnel across various functions, each operating within their designated areas of responsibility. The Board of Directors offers overarching guidance, strategic oversight, and support to the Executive Directors, senior management, and the relevant monitoring and support committees.

Cautionary Statement

Certain statements in this Management Discussion and Analysis relating to the Companys objectives, projections, estimates, and expectations may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, owing to factors such as changes in economic conditions affecting demand, supply, and pricing in the Companys operating markets, shifts in government regulations, amendments to tax laws and other applicable statutes, and other incidental factors beyond the Companys control.