Quadpro ITeS Ltd Management Discussions

Financial Year 2025-2026

1. Industry Landscape

The technology landscape in FY 2025-26 has been characterised by a fundamental shift from digitisation towards intelligent automation.

Enterprises, particularly within banking and financial services, are increasingly evaluating technology not simply on the basis of software functionality, but on measurable improvements in efficiency, compliance, accuracy and decision-making.

Artificial intelligence, workflow automation, web-based applications and intelligent data processing are gradually converging. This creates opportunities for specialised technology companies capable of understanding a clients underlying processes and developing customised solutions around them.

2. Evolution of Quadpro

FY 2025-26 represented an important stage in Quadpro ITeS Limiteds evolution.

The Companys earlier work in process automation has progressively developed into a broader technology capability covering custom software development, intelligent automation, workflow transformation and AI-assisted solutions.

During the year, Quadpro worked on automation requirements across multiple functions within the banking environment. Rather than developing generic products, the emphasis has been on understanding individual operational challenges and designing technology around specific business requirements.

At the same time, maintaining consistency and reliability in existing operations remained an important priority. This combination of stable execution and continued technology development forms the basis of Quadpros future strategy.

3. Strategic Opportunity

A significant opportunity exists between large enterprise software platforms and small standalone automation tools. Financial institutions frequently operate complex environments containing legacy systems, multiple portals, repetitive workflows and specialised regulatory processes. Replacing entire technology stacks may be expensive and disruptive. Quadpro sees an opportunity in this gap.

Customised automation, lightweight applications, intelligent interfaces and AI-enabled tools can improve individual processes while integrating with a clients existing technology environment.

This allows transformation to happen process by process, without necessarily requiring wholesale replacement of existing infrastructure.

4. AI and Technology Development

Artificial intelligence represents an important extension of Quadpros automation capabilities.

The Companys direction is to explore practical applications of AI in areas such as document intelligence, workflow assistance, data interpretation, exception identification and operational decision support.

Alongside AI, the Company continues to focus on web-based applications, dashboards, workflow engines and automation solutions capable of improving accessibility and reducing manual intervention.

Quadpros objective is not to position AI as a standalone offering. Rather, AI is expected to become another layer within the Companys broader technology architecture.

5. Material Developments in Human Resources / Industrial Relations:

The Company continues to maintain cordial and harmonious industrial relations across all levels. We recognize that our employees are our most valuable asset, and their dedication, skill, and commitment have been pivotal in driving the Companys growth and expansion.

As of March 31, 2026, the Company had a total workforce of 62 employees. We have consistently fostered a culture of inclusivity, collaboration, and performance, while ensuring a safe and conducive work environment.

Our approach to human resources emphasizes merit-based recruitment, diversity, and equal opportunity. The Company is committed to building a diverse and inclusive workforce and continues to provide opportunities for professional development, skill enhancement, and employee engagement.

Going forward, the Company will continue to invest in human capital, focusing on employee well-being, training initiatives, and fostering a high-performance culture aligned with our strategic objectives.

6. Opportunities

Key areas of opportunity include:

- Increasing automation requirements within banking and financial services;

- Modernisation of legacy and manually intensive workflows;

- Demand for customised technology rather than one-size-fits-all platforms;

- Application of AI within document- and data-intensive operations;

- Migration towards web-based enterprise applications;

- Regulatory and compliance technology; and

- Long-term maintenance and enhancement opportunities following technology implementation.

The ability to understand both the technology and the underlying business process can become an important differentiator for Quadpro.

7. Risks/Threats and Challenges

Rapid technological evolution creates the risk of shortened technology lifecycles and requires continuous development of technical capabilities.

The Company also operates in environments where cybersecurity, data confidentiality, system reliability and regulatory compliance are critical. Technology implementation cycles within large institutions may additionally be affected by procurement processes, integration requirements and internal approvals.

Quadpro therefore intends to pursue growth with appropriate emphasis on security, reliability and disciplined implementation.

8. Internal Control System and Their Adequacy

The Company has established adequate internal control systems commensurate with the nature, size and complexity of its business.

These controls are designed to ensure the orderly and efficient conduct of operations, safeguarding of assets, accuracy and reliability of financial reporting, and compliance with applicable laws, regulations and internal policies. The Company has a well-defined delegation of authority and standardized operating procedures to ensure effective monitoring and control over business processes. The internal control framework is periodically reviewed and strengthened to address changing business requirements and ensure operational efficiency. The Management believes that the existing internal control systems are adequate and effective for the Companys operations.

9. Discussion on Financial Performance with respect to Operational Performance:

		(Amount in lakhs)
Particulars	Financial Year	Financial Year
	2025 - 2026	2024 - 2025
Revenue from operations	643.94	784.80
Other Income	58.40	45.68
Total Income	702.34	830.49
Less: Operating expenditure before Finance cost,	577.42	649.12
depreciation and amortization
Earnings before Finance cost,	124.92	181.37
depreciation and amortization (EBITDA)
Less: Finance costs	9.09	1.08
Depreciation and amortization expense	82.46	95.53
Profit before tax	33.37	84.76
Less: Tax expense	12.81	21.00
Profit for the year (PAT)	20.56	63.76

10. Operational Consistency and People

While technology development remains central to the Companys future, consistent execution of existing operations remains equally important.

The Company continued to focus on process discipline, workforce stability and appropriate skill development during the year.

As Quadpro moves further into technology solutions, the organisations skill requirements are expected to increasingly combine software development, automation expertise and domain understanding.

*Company is operational in single segment.

11. Details of significant changes in key financial ratio, along with detailed explanations:

					(Amount in Lakhs)
Ratio	Numerator	Denominator	As at March 31, 2026	As at March 31, 2025	Change in Percentage	Reason
Current ratio (in times)	Total current assets	Total current liabilities	6.81	5.78	17.82	Due to Increase in the Current liabilities
Debt - Equity ratio (in time)	Debt consists of borrowings and lease liabilities	Total equity	0.05	0.09	-46.02	Due to Increase in borrowings
Debt service coverage ratio (in times)	Earning for debt Service = Net Profit after taxes + Non-cash operating expenses + Interest + Other non-cash adjustments	Debt service = Interest and lease payments + Principal repayments	12.33	148.95	-91.72	Due to Increase in borrowings
Return on equity ratio (in %)	Profit for the year less Preference dividend (if any)	Average total equity	1.03	3.27	-68.49	Due to Increase in Profits for the year
Trade receivables turnover ratio (in times)	Revenue from operations	Average trade receivables	2.19	2.78	-21.18	Due to Increase in trade receivables
Trade payables turnover ratio (in times)	Direct expenses + Other expenses	Average trade payables	5.89	6.15	-4.12	NA
Net capital turnover ratio (in times)	Revenue from operations	Average working capital (i.e. Total current assets less Total current liabilities)	0.68	0.94	-27.59	Due to decrease in Profits for the year
Net profit ratio (in %)	Profit for the year	Revenue from operations	3.19	8.13	-60.73	Due to decrease in Profits for the year
Return on Capital employed (in %)	Profit before tax and finance costs	Capital employed = Net worth + Lease liabilities + Deferred tax liabilities	2.09	4.30	-51.38	Due to decrease in Profits for the year
Return on investment (in %)	Income generated from invested funds	Average invested funds	10.10	6.99	44.49	Due to decrease in investments

12. Disclosure of Accounting Treatment

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard ("IND-AS") notified under the Companies (Indian Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.