PS IT Infrastructure & Services Ltd Management Discussions

ECONOMIC OUTLOOK

The global economy in 2026 is undergoing a moderate recovery, with growth constrained by US trade tariff and ongoing geopolitical tensions and disruptions in the energy market. The International Monetary Fund has projected the global growth to be around 3.1% in 2026, indicating a slower expansion in advanced economies due to tight monetary conditions and persistent inflation. The U.S. economy continues to benefit from strong AI-driven investments around $650 billion, while the Federal Reserve has kept policy rates within the range of 3.5% - 3.75%, reflecting a cautious approach amidst uncertainty. Growth in Europe remains modest at around 1.1% in 2026, supported by policy easing and increase in defence spending. Chinas growth is stabilising at approximately 4.5% - 5%, lowest since 1991, signalling a shift towards more cautious and sustainable development rather than rapid expansion.

India is maintaining its position as the fastest- growing major economy, even as the RBI adjusted its FY27 GDP growth forecast to 6.9% to account for external headwinds. While retail inflation is projected at 4.6% for FY27 due to supply-side pressures and energy costs, it stays within the RBI tolerance band, complemented by a narrowing current account deficit of 0.8% and a projected fiscal deficit of 4.4% for FY26. This macroeconomic stability is further evidenced by strong high- frequency indicators, including an 8.2% YoY increase in GST collections and a 5.2% rise in industrial output, largely powered by manufacturing. Ultimately, Indias long-term trajectory continues to be anchored by structural strengths such as digitalization, infrastructure expansion, and strategic free trade agreements.

INDUSTRY OVERVIEW

Indias capital markets in 2026 remain strong despite increased global volatility, supported by substantial domestic inflows. Retail engagement remains strong, with demat accounts surpassing 21.6 crore total accounts, indicating a persistent trend towards the financialization of savings. Monthly SIP inflows continue to remain strong and above 30,000 crore, ensuring consistent liquidity support. The fundamentals of the banking sector remain strong, with bank credit expected to grow around 13%, primarily driven by increased demand from retail, MSME, and Infrastructure lending. The asset quality is on an upward trajectory, as gross NPAs have fallen below 3%, while capital adequacy ratios are well above the regulatory standards. Non-Banking Financial Companies are experiencing steady growth, particularly within rural and MSME sectors, despite tighter liquidity conditions.

The equity markets have experienced volatility due to Foreign Institutional Investors outflows; with foreign investors acting as net sellers amid elevated valuations and shifts in global yields. However, the Domestic Institutional Investors have counterbalanced these outflows, contributing significantly to market stabilisation. Leadership among sectors has transitioned towards domestic cyclicals, with Public Sector Undertaking banks, capital goods, automotive, and defence sectors outperforming, driven by strong earnings visibility and a government push for capital expenditure. The fintech sector is rapidly expanding, with UPI transactions hitting a record of 22.64 billion transactions in March 2026. Regulatory measures such as digital KYC is improving credit access and enhancing market transparency. Overall, despite ongoing volatility, strong earnings and domestic liquidity present a positive outlook for India.

SEGMENTWISE REPORTING

During the current financial year, the Company has operated in single segment wise, Finance & Investments and hence Segment Reporting is not applicable to the Company.

OPPORTUNITIES & THREATS Opportunities

• Positive economic outlook in long term will lead to growth in the financial services business.

• Interest rates are stabilising now and going to create opportunities for financing business with higher spread and also for the trading and distribution business.

• Domestic expansions.

• PAN India reach, large network

Challenges

• Evolving geopolitical developments and potential global economic slowdowns may impact market sentiments, liquidity and flows into capital markets

• As platform scale increases, cyber security and operational resilience remain critical institutional priorities requiring continuous investment in controls, monitoring and response capabilities to protect trust and platform integrity.

• Potential for further regulatory interventions could impact client participation INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operations. Your Company has an Internal Audit team that is responsible for independently evaluating the adequacy and effectiveness of all internal control designs and implementation, risk management, systems and processes. Internal Audit team is manned by appropriately skilled, experienced and qualified personnel. The Internal Audit plan is also aligned with the business objectives of the Company which is reviewed and approved by the Audit Committee.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company earned revenue from operations of t 1,003.99 lakh, along with other income of t 0.14 lakh, taking the total income for the year to t 1,004.13 lakh. While the Companys total expenses exceeded its total income, resulting in a net loss for the year, the revenue generated from operations played a meaningful role in meeting the day-to-day operational and financial requirements of the Company. This, in turn, helped reduce the Companys dependence on additional borrowings from the Directors and from banks/financial institutions to fund its working capital and other requirements.

The management remains focused on improving operational efficiency, expanding revenue streams and exercising tighter control over costs, with the objective of strengthening the Companys overall financial performance in the coming years. These efforts are also aimed at progressively reducing the Companys reliance on external sources of finance and building a more self-sustaining operational and financial structure going forward.

RISKS AND CONCERNS

PS IT Infrastructure & Services Ltd. (PIISL) has exposures in various line of business. PIISL are exposed to specific risks that are particular to their respective businesses and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk, operational risk, information security risks, regulatory risk and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. PIISL continuously monitors market exposure in equity and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2025-26, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles

through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There is no material development in Human Resources, Industrial Relations front etc. during the year under review.

KEY FINANCIAL RATIOS AND RETURN ON NET WORTH

Under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to disclose significant changes (i.e. change of 25% or more as compared with the immediately previous financial year) in financial ratios, including debtors turnover, inventory turnover, interest coverage ratio, current ratio, debt equity ratio, operating profit margin and net profit margin or sector-specific equivalent ratios, as applicable and details of any change in Return on Net Worth as compared with the immediately previous financial year along with a detailed explanation thereof.

Financial ratios shows significant changes i.e. a variation of 25% or more compared with the immediately preceding financial year have been disclosed in Note 28 of the Notes to Accounts.

Return on Net Worth worsened during the year, primarily on account of a interest on Debts payable by the Company, in comparison to the negligible business activities.

OTHER DISCLOSURES IN TERM OF SCHEDULE V OF SEBI LODR REGULATIONS, 2015

Disclosures in regard to following aspects, have been provided in Note 28 of Notes to Account, forming part of Annual Report -

a. Debtors Turnover

b. Inventory Turnover

c. Interest Coverage Ratio

d. Current Ratio

e. Debt Equity Ratio

f. Operating Profit Margin (%)

g. Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.

h. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.]

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

The Company has complied with all requirements of regulatory authorities except as per remark and observations stated in the Form MR-3 issued and submitted by Secretarial Auditors and is forming of the Annual Report.

Mumbai, August 27, 2026	By order of the Board For PS IT Infrastructure & Services Limited
Registered Office:	S/d-
Office No-308, B2B Agarwal Centre,	Kawarlal K Ojha
Near Malad Industrial Estate,	DIN:07459363
Kanchpada, Mumbai - 400 064	Suspended Managing Director