Quadrant Televentures Ltd Management Discussions

ECONOMY AND INDUSTRY OVERVIEW

Macro Economic Situation

The Government of India continues to provide strong policy and regulatory support to the telecommunications sector, with a focus on accelerating digital connectivity, promoting innovation, strengthening domestic capabilities, and expanding digital inclusion. Initiatives under the Atmanirbhar Bharat framework are encouraging the development and manufacturing of telecom products and equipment within India, with the broader objective of establishing the country as a globally competitive telecom technology and manufacturing hub.

Telecommunications has evolved into a critical infrastructure sector, enabling high-speed and reliable connectivity across households, businesses, institutions, and government services. The rapid deployment and adoption of 4G and 5G networks, fiber-based broadband, high-capacity optical networks, cloud services, and data center interconnections are driving sustained demand for advanced telecom infrastructure and equipment.

The growing penetration of the internet and increasing use of bandwidth-intensive applications including high-definition video streaming, social media, online gaming, digital payments, e- commerce, cloud applications, and enterprise connectivity are contributing to significant growth in data consumption and network traffic. This trend is compelling telecom operators and infrastructure providers to continuously upgrade network capacity, coverage, performance, and resilience.

Consequently, telecom operators are increasing investments across mobile network infrastructure, optical transmission systems, broadband access networks, data networking, and packet-switching infrastructure. These investments are aimed at meeting the rising demand for high-speed connectivity while ensuring improved network quality, reliability, scalability, energy efficiency, and cost effectiveness. The continued expansion of digital services, coupled with Indias growing emphasis on indigenous technology and manufacturing, is expected to support the long-term growth and transformation of the telecom equipment market.

The Indian telecommunications industry has demonstrated its strategic importance by serving as a critical enabler of economic activity, public services, and digital connectivity during periods of disruption. The sector has continued to support businesses, government institutions, households, and consumers by ensuring uninterrupted access to communication and digital services, while simultaneously navigating significant financial, regulatory, and competitive challenges.

Despite these pressures, the industry has continued to evolve, supported by increasing data consumption, network modernization, and the rollout of next-generation technologies. The sector has also witnessed a gradual improvement in financial and operational conditions following tariff revisions, although Indian consumers continue to benefit from highly competitive telecom pricing alongside some of the worlds highest levels of mobile data consumption.

The Government of India has played an important role in strengthening the sector through measures aimed at improving ease of doing business, facilitating market access for telecom equipment, encouraging domestic manufacturing, and establishing a transparent and proactive regulatory environment. Policy initiatives have increasingly focused on promoting investment, innovation, technology adoption, and indigenous capabilities across the telecom value chain.

These measures have contributed to the continued availability of reliable and affordable telecommunications services while supporting the industrys transition toward 5G, fiber broadband, digital infrastructure, and advanced network technologies. The combination of strong policy support, rising digital demand, and ongoing network investments is expected to further strengthen the telecommunications ecosystem and its contribution to Indias digital economy.

Digital initiatives have emerged as a key driver of sustainable economic and social development, enabling innovation, improving efficiency, and expanding access to essential public and private services. The continued development of Digital Public Infrastructure (DPI), along with technology-enabled solutions in areas such as healthcare, education, financial services, and governance, is improving service delivery and contributing to greater inclusion and accessibility.

Indias digital transformation agenda is focused on building a digitally empowered society and a knowledge-driven economy by expanding digital connectivity, strengthening digital infrastructure, and promoting technology adoption across sectors. The rapid evolution of the digital ecosystem is also transforming the way organizations operate, compelling businesses to reassess their operating models, strategies, customer engagement approaches, and product and service portfolios.

To remain competitive in an increasingly technology-driven environment, organizations are investing in new digital solutions and modernizing their technology infrastructure. Key technologies such as Data Analytics, Cloud Computing, Artificial Intelligence (AI), Machine Learning (ML), Cybersecurity, Automation, and Internet of Things (IoT) are increasingly being integrated across business functions, including marketing, sales, finance, operations, customer service, and supply chain management.

The convergence of these technologies is enabling organizations to improve operational efficiency, enhance customer experiences, strengthen decision-making, optimize costs, and develop new sources of growth. As digital adoption continues to accelerate, technology-led transformation is expected to remain a critical priority for organizations seeking to build scalable, resilient, and future-ready business models.

Regulatory Developments/Changes:

During FY 2025-26, the Indian telecommunications sector witnessed continued regulatory reform aimed at strengthening the legal framework, improving consumer protection, enhancing network security, and facilitating the growth of digital infrastructure. The implementation of the Telecommunications Act, 2023 continued to progress through supporting rules, notifications, and regulatory measures, with the Government moving toward a more technology- neutral and streamlined framework for the sector.

Key regulatory developments during the year included:

• Strengthening of telecom cyber security: The Government notified the Telecommunications (Telecom Cyber Security) Amendment Rules, 2025 in October 2025. The amendments strengthened the regulatory framework for telecom cybersecurity and introduced additional mechanisms relating to mobile number validation and protection of telecom identifiers.

• Critical Telecommunication Infrastructure: In July 2025, the Department of Telecommunications notified the framework for declaration of Critical Telecommunication Infrastructure under the Telecommunications Act, 2023, reinforcing the focus on resilience and security of critical telecom networks and infrastructure.

• Consumer protection and spam control: TRAI continued to strengthen measures for controlling unsolicited commercial communications. The Telecom Commercial Communications Customer Preference (Second Amendment) Regulations, 2025 were issued in February 2025, alongside further directions during FY 2025-26 to address misuse of headers and content templates and strengthen consent-based commercial communications.

• Tariff and regulatory framework: TRAI issued the Telecommunication Tariff (71st Amendment) Order, 2025 in

June 2025, while continuing its review of tariff and consumer- related regulatory provisions.

• Quality of Service: TRAI continued implementation of the 2024 Quality of Service framework, including directions issued during FY 2025-26 for greater transparency in reporting and publication of service-provider performance against prescribed QoS benchmarks.

• Spectrum and infrastructure sharing: TRAI provided further recommendations and responses during FY 2025-26 on telecommunication infrastructure sharing, spectrum sharing and spectrum leasing, supporting more efficient utilization of telecom infrastructure and spectrum resources. TRAI also issued recommendations concerning additional spectrum bands identified for IMT services.

• Digital infrastructure and Right of Way: The Government continued implementation of the Telecommunications Right of Way Rules, 2024, with various States and Union Territories issuing implementation orders during FY 2025-26. These measures are intended to streamline approvals for deployment of telecom infrastructure, including fiber networks and 5G infrastructure.

Overall, the regulatory developments during FY 2025-26 indicate a shift toward a more comprehensive, security-focused and technology-oriented telecom regulatory environment. The reforms are expected to support network expansion, improve consumer protection, facilitate efficient infrastructure and spectrum utilization, strengthen cybersecurity, and create a more predictable framework for investment and innovation in Indias telecommunications sector.

TRAI has issued following directions and Recommendations in the financial Year 2025-26:

Directions:

1. Direction regarding Public Data Offices (PDOs) under the PM- WANI Scheme. The information is required to be submitted in the format prescribed in the Annexure to the said Direction within ten (10) days from the end of each quarter, dated 12-9- 2025

2. Direction regarding SIP/PRI Now therefore, in exercise of powers conferred under Section 13 of the Telecom Regulatory Authority of India Act, 1997 read with the relevant provisions of TCCCPR, 2018, the Authority hereby directs all Access Providers as follows:

(i) Mandatory registration of SIP/PRI users on DLT This Direction applies only to those SIP/PRI resources originating Bulk Commercial Communications, as defined under clause 2(f) of the Telecom Commercial Communications Customer Preference Regulations, 2018.

(ii) Every Access Provider shall ensure that every legal entity or individual using SIP/PRI resources with outbound calling capability is registered on the Distributed Ledger Technology (DLT) platform prior to activation of such resources. Such registration shall include assignment of a unique identifier namely "Unique Primary SIP Identification Number (UPSIN)", similar to the registration framework already being followed for entities using 140- series resources and registered on DLT.

(iii) UPSIN shall be a 20-character alphanumeric header, comprising the 10-digit pilot number of the SIP/PRI connection followed by a 10-character alphanumeric identifier assigned to the entity.

(iv) The registration data shall, inter alia, include details of DID/calling numbers allotted to the entity or individual and number of concurrent call capacity of SIP/PRI trunk. Any addition, modification or surrender

3. Direction dated 27.01.2026, the Access Provider is required to submit the Performance Monitoring Report in the prescribed revised formats attached with the Direction.

4. Direction under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997, regarding institutionalization of AI/ML-based unsolicited commercial communication (UCC) Detect intelligence for inter-operator sharing and regulatory action against UCC senders dated 27- 02-2026.

5. Amendment to the Direction No. D-27/ 1/1(1) /2025-QoS (E- 16147) dated the 9tb June, 2025 regarding updation of Location Routing Number (LRN) on the DLT platform during the port out window under the provisions of the Telecom Commercial Communications Customer Preference Regulations, 2018 (6 of 2018). Dated 16-02-2026.

6. Direction under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) regarding mandatory adoption of 1600-series numbers by IRDAl regulated entities. Dated 16-12-2025

7. Direction under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) regarding phase-wise implementation of mandatory adoption of 1600- series numbers by RBI, SEBI and PFRDA regulated entities. Dated 19-11-2025

8. TRAI Direction No. RG-29/(1)/2025-QoS dated 09.09.2025 to the service providers regarding publication of their performance with respect to the benchmark of Quality of Service parameters specified under the Standards of Quality of Service of Access (Wireline and Wireless) and Broadband (Wireline and Wireless) Service Regulations, 2024 (06 of 2024) dated 9-9-2025.

9. Direction under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), regarding conduct of Pilot Project for acquisition of fresh digital consent through the Consent Registration Function (CRF) Framework with RBI-regulated Banks dated 13-06-2025.

10. Direction under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) regarding compliance of Standard Operating Procedure for restoration of telecom resources disconnected under the Telecom Commercial Communications Customer Preference, dated 7- 04-2025

Business Overview

Quadrant Televentures Limited (QTL) is a Unified License Services Licensee and an Internet Service Provider in the Punjab Telecom Circle comprising of the State of Punjab, the Union Territory of Chandigarh and the Panchkula town of Haryana. The Company started its operations as a fixed line service provider under the brand name "CONNECT" in the year 2000. Subsequently, the Company was granted the UASL License (Unified Access Services License) in the Punjab Telecom Circle in 2003, which was further migrated to Unified License in the year 2015. Apart from the UASL License, the Company also holds the ISP (Internet Service Provider) License Category - A (PAN INDIA) and the IP-1 (Infrastructure Provider- Category -1) License for providing services in the Punjab Telecom Circle.

Currently, the Company is providing Broadband Services on FTTH/ DSL/VDSL technology, Fixed Voice (Landline) services, Internet Leased Line and P2P services in the Punjab Telecom Circle. As on March 31, 2026, the Company had a total subscriber base of 3.31 Lakhs customers.

The data consumptions and requirement of speed is increasing manifold which is one of the main reasons service providers and users are looking at fiber-to-the-home (FTTH) broadband connections as a potential solution. It is widely believed that FTTH is the only technology with enough bandwidth to handle projected consumer demands during the next decade reliably. Fiber has a virtually unlimited bandwidth coupled with a long reach, making it "future safe," or a standard medium that will be in place for a long time to come.

Keeping all these things in mind the main focus of the QTL team has been to expand the FTTH footprint across the state of the Punjab. However since FTTH rollout is an expenditure intensive ventures, thus QTL has roped in multiple partners who are doing investment on behalf of the QTL from node to the customer premises. The ONT i.e. CPE is also being provided by the partner.

In last one year 0.21 Lakhs new FTTH home passes/ports have been rolled out thus increasing the total FTTH capacity to 5.80 Lakhs. Total FTTH subscriber base has dropped from 2.27 Lakhs in March 2025 to 2.18 Lakhs in March 2026.

OPPORTUNITIES AND THREATS

Opportunities

The continued expansion of high-speed broadband connectivity presents a significant growth opportunity for the Indian telecommunications industry. The rapid transition from legacy 2G/ 3G networks toward 4G and 5G technologies is driving sustained demand for advanced telecom infrastructure, including radio access equipment, baseband units, antennas, transmission systems, and associated network components. While 5G adoption is accelerating across major markets, the continued expansion of 4G networks and subscriber migration in developing and underserved regions provides substantial headroom for further growth.

Indias large and geographically diverse population, coupled with the increasing availability of affordable smartphones and broadband services, creates significant potential for further wireless broadband penetration. In several regions, particularly rural and semi-urban areas, wireless connectivity remains an important means of accessing the internet due to the relatively limited availability of fixed broadband infrastructure. The ongoing expansion of fiber backhaul, 4G coverage and 5G networks is expected to improve connectivity and support the migration of users toward higher-speed digital services.

The Company is putting all initiatives to maintain the quality of services and retainability of the subscribers of the Company in view of the prevailing preferences of the subscriber and competition in the market.

Threats

The rapid adoption of cloud-based communication, collaboration and digital workplace solutions presents a potential threat to traditional telecom voice services. As enterprises accelerate their digital transformation and increasingly migrate from on-premise infrastructure to cloud-based platforms, conventional voice and legacy communication services may face declining relevance and demand.

The emergence of new digital communication technologies is also intensifying competitive pressure within the telecommunications industry. Telecom operators, technology companies and cloud service providers are increasingly offering integrated communication solutions that combine connectivity with software-enabled services. This convergence may result in pricing pressure, substitution of traditional voice services, lower revenue from legacy offerings and increased customer expectations.

As enterprises continue to adopt hybrid and cloud-first operating models, the Company may need to continuously invest in network modernization, cloud capabilities, digital platforms and value-added enterprise solutions to remain competitive. Failure to adapt its service portfolio in line with evolving customer requirements could adversely affect the Companys ability to retain enterprise customers and sustain revenues from traditional communication services.

Outlook

The Company remains focused on strengthening its brand presence and enhancing customer engagement through sustained investments in brand building, marketing initiatives and customer-centric communication. During the coming period, the Company plans to undertake targeted brand interventions aimed at improving visibility, reinforcing brand positioning and deepening engagement across key customer segments.

RISK & CONCERNS

Regulatory team along with legal and network keeps a close watch on compliances with regulations and laws and ensures the operations of the Company are within the prescribed framework, and have also implemented business continuity plan wherever required. The Risk Management framework of the Company ensures regular review by management to proactively identify the emerging risks, to do risk evaluation and risk prioritization along with development of risk mitigation plans and action taken to minimize the impact of the risk.

Due to lack of adequate infrastructure, the growth of wired internet has been restricted to major cities as a result of which wireless remains the preferred means of connecting to the internet. However, there is significant headroom for broadband wireless penetration (as a percentage of population) to improve further as rest of India upgrades towards broadband connectivity.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

Company has in place adequate internal control systems commensurate with the size of its operations. The Company has in place adequate controls, procedures and policies, ensuring orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

Independent firm M/s Grant Thornton Bharat LLP conducts the internal audit for various functions/ aspects. It reviews and evaluates and presents their reports to the Audit Committee and the management at regular intervals. The Internal Auditors reports dealing with internal control systems are reviewed by the Audit Committee and appropriate actions are taken, wherever necessary. The Internal Control is set up in such a way so as to ensure that the Financials and the other records are reliable for preparing the financial statements of the Company.

SEGMENT WISE AND PRODUCT WISE PERFORMANCE

The Company operates in a single segment. The Product wise performance has been explained separately in subsequent paras.

ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company has expanded its wire line services to more than 150 cities / towns of Punjab and widened its wireless footprint to cover the whole of Punjab Circle.

The Companys operating revenue was Rs. 20,953.45 Lakhs during the financial year 2025-26 against Rs. 23,624.20 Lakhs for the financial year 2024-25 and also the Company have sustained an operating loss of Rs. 2267.07 Lakhs during the financial year 2025-26 against Rs. 27629.07Lakhs for the financial year 2024-25.

Revenue at a glance is as follows:

(Rs. in Lakhs)

Parameter	FY 2025-26	FY 2024-25
Unified Access Services	1271.92	1,740.23
Internet Services	19631.84	20,615.44
Interconnect Usage Charges	49.69	1,268.53
Other Income	90.20	145.20
Total	21043.65	23,769.40

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Key Financial Indicators

Telecom Business

(Rs. in Lakhs)

Parameter	FY 2025-26	FY 2024-54
Revenue from Telephony Service	20953.45	23,624.20
On Gross Basis		(Rs. in Lakhs)
Parameter	FY 2025-26	FY 2024-25
Gross Income	21043.65	23,769.40
Profit/(Loss) for the year	(2267.70)	(27,629.07)

Major Expenses at a glance are as follows:

(Rs. in Lakhs)

Parameter	FY 2025-26	FY 2024-25
Network Operations Expenditure	6401.65	8,515.54
Employee Benefit Expenditure	4704.89	5,050.95
Sales & Marketing Expenditure	4819.65	5,100.87
Administration & Other Expenditure	1623.78	1,814.94
Finance Cost	3845.56	15,404.96
Total	21395.53	35,887.26

SHARE CAPITAL

The Authorised Share Capital of the company is Rs.150000 Lakhs. Against this, the Paid up Share Capital is Rs.28607.15 Lakhs comprising of Rs.6122.6 Lakhs by way of Equity Shares and Rs.22484.54 Lakhs by way of Cumulative Redeemable Preference Shares (CRPS).

KEY FINANCIAL RATIOS

There are significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year) in key financial ratios. Further, there is no change in return on Net worth during the year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE

Continued deployment of Reward and Recognition, consistent communication by leadership, on aspects impacting work-life and focus on key HR programs such as Internal Job Postings, Appraisals, Learning & Development. We are committed to remaining among the industrys leading employers. Companys planning for people has been built on the principles of being a consumer centric Company with technology as the base. The organization has equipped itself

for high change vigilance and embedded trust at the foundation of its people agenda and has adopted digital as the first port of call for all solution building.

The Company had a total 1040 Employee on its rolls as on March 31, 2026. The company has a professionally qualified work force including B-Tech, MBAs, C.As / C.S.s etc. The key aspects of our HR practice include recruitment, training and development, and compensation.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may constitute a "forward-looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic markets in which the Company operates, changes in the Government Regulations, tax laws and other statutes and other incidental factors. Further, the Company retains the flexibility to respond to fast-changing market conditions and business imperatives. The Company may therefore need to change any of the plans and projections that may have been outlined in this report, depending on the actual market conditions.

For QUADRANT TELEVENTURES LIMITED
Dinesh A. Kadam	Rajesh Jhunjhunwala
Whole Time Director	Resolution Professional
(DIN: 08282276)	(IBBI/IPA-003/IP-N00457-
Place: Mohali	C01/2017-2018/11102
Date: August 11, 2026