Ramco Systems Ltd Management Discussions

Global Economy .1

The global economy continues to demonstrate resilience, even as it navigates a more complex and evolving environment. According to the IMF?s April 2026 World Economic Outlook, global growth is projected at 3.1% in 2026 and 3.2% in 2027 This trajectory reflects a steady yet subdued expansion, remaining below long-term averages amid geopolitical disruptions, including the ongoing conflict in the Middle East, and increasing geoeconomic fragmentation.

While these developments have created market volatility, their implications for the enterprise technology sector are more nuanced. Elevated uncertainty is prompting enterprises to prioritize efficiency, cost optimization, and operational visibility. This, in turn, is accelerating demand for cloud-based platforms, automation, and Al-led enterprise solutions.

Inflation dynamics remain uneven.

Global inflation is projected to rise to ~4.4% in 2026 before easing to 3.7% in 2027 For enterprises, this translates into sustained pressure on operating costs. This, in turn, reinforces the need for digital transformation initiatives that improve productivity, reduce manual intervention, and optimize resource utilization. Resultantly, investments in SaaS platforms, automation, and AI- driven decision systems are continuing to gain strategic priority despite macroeconomic headwinds.

Tighter financial conditions and elevated interest rates are influencing enterprise spending patterns. Organizations are becoming more selective, pivoting from large-scale, monolithic IT transformations toward modular, cloud-based, and faster-to-deploy solutions that deliver measurable outcomes and quicker return on investment.

Global workforce dynamics are also evolving rapidly. Talent shortages, rising labor costs, and hybrid work models are pushing enterprises toward intelligent HR & payroll, and workforce management solutions. Multi-country compliance requirements and distributed operations are compounding this complexity, driving demand for integrated and scalable platforms capable of managing global workforces.

Across industries, a structural shift is underway: from systems of record to systems of intelligence. Enterprises are increasingly seeking platforms that can automate workflows, interpret data, and surface insights, thus enabling real-time decision-making. This is accelerating adoption of AI-native, agent-driven, and conversational enterprise applications, redefining the role of enterprise software in business operations.

In parallel, global supply chain realignments and regulatory complexity are driving demand for integrated enterprise systems that deliver end-to-end visibility across operations, finance, logistics, and asset management. Organizations are moving toward composable, API-driven architectures, enabling the flexibility, scalability, and innovation velocity that the moment demands.

I Global growth is likely to remain steady but subdued, supported by resilient domestic demand and easing inflation. However, the outlook for the enterprise software sector remains relatively favorable, underpinned by sustained investments in digital transformation, cloud adoption, and AI-led automation.

Risks remain tilted to the downside, including prolonged geopolitical tensions and tighter financial conditions. Delays in enterprise spending cycles may further temper near-term growth. At the same time, significant opportunities are emerging from the accelerating shift toward AI-native platforms, increasing adoption of automation, and the need for integrated, scalable enterprise systems across industries.

For enterprise technology providers, the environment presents a dual reality: heightened caution in near-term spending, alongside a structural, long-term shift toward intelligent, outcome-driven digital platforms.

(Source: https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026)

Indian Economy

India continued to demonstrate resilience within a complex and evolving global environment, supported by strong domestic fundamentals, policy focus, and ongoing structural reforms. The economy remained one of the fastest-growing major economies globally. Growth was driven by robust domestic demand, sustained public capital expenditure, and improving private investment momentum.

Digitalization continues to reshape the economic landscape. Expanding digital public infrastructure, including Aadhaar, UPI, and other digital frameworks, is accelerating formalization, improving financial inclusion, and enabling data-driven decision-making across sectors. This is fostering a more transparent, efficient, and interconnected economic ecosystem.

Inflation moderated during the year, owing to effective monetary and fiscal measures that supported consumption stability. The financial sector remained robust, with healthy credit growth, improved asset quality, and stronger capital buffers. Increased access to formal credit, especially for MSMEs, is reinforcing business expansion and formalization.

The policy environment remains focused on ease of doing business, infrastructure development, digital adoption, and trust-based governance. Continued investments in logistics, manufacturing ecosystems, and digital capabilities are expected to enhance productivity and sharpen India?s competitiveness across sectors.

India?s growth outlook remains stable, backed by strong domestic demand and continued policy support. The Reserve Bank of India projects GDP growth at ~6.9% for FY 2026-27 This indicates a moderate trajectory amid external risks such as geopolitical tensions and commodity price volatility. Despite global headwinds, India?s structural strengths and reform momentum are expected to sustain economic stability and growth.

(Sources: https://www.indiabudget.gov.in/economicsurvey/doc/Infographics%020 English.pdf

https://economictimes.indiatimes.com/news/economy/indicators/rbi-gdp-growthfy- 2026-27-mpc-meeting-gdp-forecast-india-eases-growth-forecast -as-iranwar- oil-surge-risks-cloud-growth-trajectory/articleshow/130091660.cms?from=mdr https://www.thehindu.com/business/rbi-monetary-policy-meeting-speech -april-8-2026-live-updates/article70837023.ece)

Domestic demand remained the principal growth driver, backed by stable urban consumption and a gradual recovery in rural demand. Government-led capital expenditure, particularly in infrastructure, logistics, and connectivity, continued to play a catalytic role. These investments strengthened economic activity and helped crowd in private investments.

On the supply side, the services sector remained the primary growth engine. Strong performance in IT, financial, and professional services supported this momentum. Manufacturing activity also improved, aided by production-linked incentive schemes, localization initiatives, and deeper integration into global supply chains.

Key Industry Trends and Developments

In FY 2025-26, enterprise technology adoption is being driven less by experimentation and more by quantifiable impact. Organizations are prioritizing solutions that are reliable, secure, and value-driven. Across AI, cloud, cybersecurity, and automation, the focus is converging on practical, controlled, and sustainable deployment.

This reflects a broader shift toward responsible digital practices, stronger governance, and long-term technology investments.

AI and ML: From Experimentation to Structured Impact

Defined Use Cases Over Open Exploration

The phase of broad, exploratory initiatives is giving way to focused deployment. Organizations are prioritizing clearly defined, high-impact use cases that deliver measurable business outcomes and operational efficiency.

Rise of Industry-Specific Intelligence

AI and ML models are becoming more specialized and context-aware. Organizations are training systems on domain-specific data and calibrating them to business needs. This shift is increasing the importance of data quality, explainability, traceability, and governance.

Agentic AI and Autonomous Systems

AI is evolving from an assistive tool to an autonomous actor. Agentic AI is enabling independent decision-making, workflow execution, and real-time responsiveness. However, scalable adoption depends as much on process redesign and organizational readiness as on technological capability.

AI Beyond Software: Physical and Operational Integration

Intelligence is extending into physical environments through robotics and operational systems, embedding AI into real-world processes and industrial workflows. This is enabling smarter automation and more adaptive operations.

AI Security and Control as a Core Priority

Securing AI systems has become a critical imperative, with a focus on safeguarding data, models, and applications while ensuring controlled and reliable outcomes.

Cloud and Infrastructure: Strategic, Hybrid, and Sovereign

Sovereignty, Compliance, and Control

Cloud strategies are increasingly being shaped by regulatory requirements and data sovereignty concerns. Hybrid, multi-cloud, and sovereign models are fast becoming the standard.

Infrastructure Designed for AI Scale

The rapid growth of AI workloads is reshaping enterprise infrastructure priorities. Organizations are redesigning compute environments to support high-performance processing, scalability, and energy efficiency. Optimizing infrastructure costs while sustaining AI readiness has become a strategic imperative.

Cybersecurity: From Defense to Predictive Resilience

Proactive, Intelligence-Led Security

Cybersecurity is moving from reactive defense to predictive resilience, with AI enabling real-time threat detection and anticipatory risk management.

Security Embedded across Operations

Security is no longer a standalone function. It is integrated across systems, processes, and workflows, ensuring protection is continuous rather than episodic.

Cyber as a Culture of Trust

Organizations are fostering enterprise-wide cyber responsibility, extending beyond IT to build trust, ensure data integrity, and strengthen digital ecosystems.

Automation and Data: Governed, Transparent, and Outcome-Driven

Automation with Accountability

Automation is advancing within stricter governance frameworks, with organizations prioritizing initiatives that demonstrate clear financial and operational value.

Traceability and Regulatory Alignment

Increasing compliance requirements are driving demand for systems that ensure auditability, transparency, and traceable data flows. Enterprises are strengthening data governance to support regulatory alignment and operational reliability.

Human-in-the-Loop Systems

Automation is increasingly being complemented by human supervision and decision validation. This ensures explainability, adaptability, and long-term sustainability of processes.

Governance and Operating Models: Building AI-Native Enterprises

From Systems to Intelligent Platforms

Enterprises are transitioning toward integrated, Al-native systems that combine automation, analytics, and decision-making capabilities.

Reimagining Operating Models

Businesses are redesigning operating structures to enable collaboration between human and digital workforces, moving toward more agile and modular architectures.

Governance as an Enabler

Governance frameworks are becoming central to ensuring responsible technology use, regulatory compliance, and sustainable digital transformation.

Emerging Technologies: Building for the Future of Intelligent Enterprises

Digital Trust and Data Integrity

Technologies that strengthen data provenance, integrity, and verification are becoming increasingly important in ensuring trust across digital ecosystems.

Next-Generation Intelligent Systems

The convergence of AI, advanced computing, and physical systems is shaping the next phase of enterprise transformation. Intelligent systems are evolving beyond automation to enable adaptive, interconnected, and context-aware operations, supporting autonomous decisionmaking, real-time responsiveness, and AI-native enterprise workflows.

In FY 2025-26: Performance Over Promise

The defining theme of FY 2025-26 is clear: enterprises are no longer investing in potential, but in performance.

Innovation is moving beyond experimentation to disciplined execution, focusing on building systems that are intelligent, resilient, and trusted. Technology decisions are increasingly driven by measurable outcomes, operational control, and long-term sustainability.

(Source: https://community.nasscom.in/communities/ emerging-tech/digital-

innovation- and-key-technology-trends-2026

https://www.deloitte.com/us/en/insights/topics/technology-

management/tech-trends.html

https://www.hardis-group.com/en/news/technology-

trends-2026-ai-cybersecurity-cloud/)

Company Overview

Ramco Systems Limited (Ramco Systems, Ramco, or ‘the Company?), an enterprise software provider, delivers cloud- based solutions across key business functions. With over 25 years of experience, the Company has built capabilities in developing scalable and integrated applications that help organizations improve operational efficiency and adapt to evolving business requirements.

Ramco offers a range of enterprise solutions spanning Global Payroll, Aviation M&E/MRO, ERP and Logistics. These platforms are designed to simplify processes, improve visibility, and support faster decision-making. By integrating automation, analytics, and AI, Ramco enables businesses to streamline workflows, reduce manual effort, and maintain operational consistency at scale.

The Company?s product portfolio gives customers the flexibility to adopt solutions based on their operational needs. Its platforms are built to handle complex requirements, including multi-country payroll processing, aircraft maintenance planning, and supply chain coordination, while maintaining configurability and ease of use.

Performance Review

The year marked calibrated progress shaped by evolving market conditions, shifting customer expectations, and the ongoing transition to cloud-based enterprise solutions. Enterprises adopted a more outcome-driven approach to technology investments, resulting in measured decision cycles, while regulatory and compliance requirements continued to influence spending patterns across markets.

During FY 2025-26, the Company prioritized execution discipline and operational efficiency. Revenue from operations stood at Rs. 7,009.52 Mln. compared to Rs. 5,913.42 Mln. in the previous year. Continued traction in subscription-led offerings drove growth, with recurring revenues contributing a higher share to overall performance. Cloud-led revenues accounted for 68%, reflecting sustained migration toward cloud-based deployments.

EBITDA stood at Rs. 1,443.27 Mln. with margins at 21% (before exceptional items EBITDA stood at Rs. 1,65782 Mln. with margins at 24%), supported by cost optimization initiatives and improved delivery efficiency. Net profit was Rs. 418.40 Mln. against the previous year?s loss of Rs. 342.48 Mln. Operating cash flows improved to Rs. 1,344.49 Mln. against previous year?s Rs. 1,133.47 Mln., indicating better working capital management and stronger cash discipline.

The year also saw continued meaningful progress in improving operational alignment across functions. Efforts were directed toward enhancing delivery efficiency, optimizing cost structures, and strengthening internal processes to support consistent execution, leading to improved service quality and better resource utilization.

Customer engagement remained stable. The Company added 30 new customers during the year, while retaining its existing client base. Deal momentum held firm, supported by demand across key markets and the continued relevance of its offerings.

Ramco also strengthened its international footprint. Revenue from overseas markets stood at 81%, reflecting steady progress in global operations, backed by focused client acquisition and deeper engagement in priority regions.

The Company also advanced its partner ecosystem, with collaborations across global technology and consulting partners supporting solution deployment and extended market reach.

Internal initiatives remained focused on improving workforce productivity and delivery capabilities.

Overall, FY 2025-26 was a year of operational alignment, defined by disciplined execution, cost management, and strengthening of core business fundamentals.

Key Partnerships

Partner	Partnership Overview	Impact
Workday	Strengthened strategic partnership with Workday during FY 2025-26, with Ramco becoming a Platinum-Level Innovation Partner. Ramco Payce also achieved Workday Global Payroll Connect (GPC) certification, validating its ability to deliver certified, pre-built integrations with Workday HCM.	Reinforces Ramco?s leadership in global payroll solutions while strengthening alignment with Workday?s ecosystem. Enhances credibility with multinational enterprises and service partners supporting Workday-led HR transformation programs.
ST Engineering	Entered into a strategic Memorandum of Understanding (MoU) with ST Engineering?s Commercial Aerospace business to explore a long-term business and technology partnership focused on co-creating next-generation digital aviation MRO solutions. As part of the MoU, both organizations will also establish a jointly operated Competency Center and Innovation Lab in Singapore.	Strengthens Ramco?s positioning in the global aviation MRO ecosystem by aligning with a leading aerospace player. Enhances innovation capabilities through co-development of AI-enabled solutions, while expanding global market access, solution depth, and enterprise credibility across aviation customers.

Human Resources

During FY 2025-26, Ramco Systems continued to strengthen workforce capabilities, leadership depth, and organizational readiness in line with its long-term digital transformation and AI-led modernization strategy. The Company remained focused on building a future-ready workforce through structured learning ecosystems, capability development initiatives, leadership programs, and employee engagement interventions aligned with evolving business and technology priorities.

Capability-building initiatives during the year focused on strengthening readiness across AI, cloud technologies, enterprise SaaS, modernization engineering, consulting, and customer delivery functions. Structured learning journeys, technical bootcamps, guided implementation pathways, adaptive learning interventions, and Communities of Practice (CoPs) were further expanded to improve execution quality, delivery agility, and innovation readiness across Business Units. The Company also strengthened its learning and competency ecosystem through platforms such as rLearn and SkillPRO to support role- based capability development and competency visibility across the organization.

AI and GenAI capability development remained an important area of focus during the year. Enterprise-wide initiatives supporting AI-led engineering, workflow automation, modernization programs, and digital productivity enhancement were undertaken to strengthen technology readiness and operational efficiency across teams. The Company also continued to strengthen cloud, automation, and API-driven modernization capabilities aligned with evolving customer and platform requirements.

Leadership and professional development initiatives continued across managerial, technical, and functional roles through leadership coaching, managerial readiness programs, communication excellence initiatives, stakeholder management capability-building interventions, and cross-functional exposure opportunities. Employees were also provided broader business exposure across operations, consulting, sales, customer success, and delivery functions to strengthen organizational agility and leadership pipeline development.

Employee engagement, workplace culture, and well-being remained important focus areas during FY 2025-26. The Company continued fostering a collaborative and transparent work environment through leadership connect sessions, townhalls, internal communication initiatives, employee recognition programs, wellness initiatives, Employee Assistance Programs (EAPs), and employee volunteering activities across locations. Ramco also continued promoting inclusive workplace practices, workplace ethics, diversity initiatives, and POSH compliance across the organization.

The Company maintained a stable industrial relations environment throughout the year. Employee relations across offices and operational locations remained cordial, and no material industrial disruptions were reported during FY 2025-26.

The Company has assessed the potential impact of the new Labour Codes, including changes to the definition of wages affecting statutory benefits such as gratuity and leave encashment.

The Company continues to monitor implementation timelines and evolving state-level rules and notifications. Appropriate one-time provisions arising from these changes have also been recognized wherever applicable.

As of March 31,2026, the total number of employees on the rolls of the Company stood at 1,506.

Segmental Performance

Ramco HR and Payroll

Industry Dynamics

The global HR and payroll landscape is undergoing a significant transformation as enterprises move away from fragmented, country-specific payroll models toward integrated regional and global payroll ecosystems. Increasing workforce mobility, expanding cross-border operations, and continuously evolving statutory regulations are driving demand for unified, scalable, and compliance-driven payroll platforms.

Organizations are increasingly seeking payroll systems capable of operating across multiple countries on a single platform while maintaining deep localization capabilities and statutory alignment. Enterprises are also under pressure to shorten payroll cycles, improve first-time accuracy, simplify reconciliations, and reduce operational dependency on manual processes.

As payroll ecosystems become more interconnected across HR, finance, attendance, and third-party systems, businesses are demanding seamless integrations, real-time monitoring, and easier deployment models. The industry is simultaneously witnessing a shift toward intelligent payroll operations, where automation, anomaly detection, compliance intelligence, and conversational interfaces are becoming central to scalable payroll transformation.

Overview

Ramco Payce is a cloud-native global payroll platform designed to support the complete payroll lifecycle across complex, multicountry environments. Built on a single-code-base architecture, the platform combines payroll processing, compliance management, analytics, workflow automation, and employee experience into a unified ecosystem.

Ramco Payce is anchored on five strategic pillars: Reliability, Intelligence, Predictability, Deployment, Velocity, and Experience. The platform enables enterprises to standardize payroll operations globally while supporting country-specific statutory and localization requirements.

During FY 2025-26, the business sustained strong execution momentum across APAC and the Middle East through new customer acquisitions, strategic account expansion, and large- scale multi-country deployments.

Offerings

Multi-Country Payroll

Managed Payroll Services

Core HR and Workforce Management Integration

Payroll Compliance Management

Employee Self-Service and Chatbots

Payroll Analytics and Reporting

Plug-and-Play Integration Framework

Payroll Implementation Accelerators

Conversational Payroll Operations

AI-enabled Validation and Exception Monitoring

Benefits

Ramco Payce enables organizations to standardize payroll operations across multiple countries through a unified platform while improving processing speed, first-time accuracy, and operational consistency. The platform reduces dependency on manual intervention and reconciliation efforts through integrated workflows, automated validation capabilities, and centralized monitoring mechanisms.

Organizations benefit from stronger statutory governance, improved operational visibility through dashboards and tracking tools, and faster deployment timelines supported by pre-configured implementation frameworks. The platform also enhances employee experience through self-service capabilities while enabling enterprises to scale payroll operations efficiently without proportional increases in operational overhead. In addition, seamless interoperability across HR, finance, attendance, and third-party systems helps simplify enterprise-wide payroll coordination and operational integration.

USPs

Single Code-Base Global Payroll Platform

Ramco Payee provides a unified payroll platform capable of supporting multi-country payroll operations while maintaining deep localization and statutory compliance across regions.

AI-Native Payroll Ecosystem

The platform incorporates AI-led capabilities across validation, exception handling, query resolution, compliance monitoring, and operational workflows, enabling enterprises to transition toward more predictive and intelligent payroll operations.

Implementation Accelerator Program (IAP)

A major differentiator is the operationalization of the Implementation Accelerator Program, designed to reduce deployment timelines and improve implementation consistency through AI-assisted requirement capture, reusable payroll templates, certified integration connectors, and low/no-code mapping tools.

Intelligence-Driven Compliance Management

Ramco?s RAiSE compliance engine autonomously monitors over 1,100 statutory websites across 50+ countries daily, identifying regulatory changes and routing them through structured validation workflows.

Enhanced Integrations and Scalable Architecture

The platform supports API-based interoperability across HR, finance, attendance, and third-party systems through centralized monitoring, real-time tracking, and scalable integration frameworks.

In-Memory Optimization (IPO) engine and multi-agent payroll processing enable high-volume payroll runs to be executed in significantly shorter cycles with consistent speed, scalability, and accuracy.

No-Code

Payroll Configuration

Ramco Payce enables business users to configure payroll rules and workflows through intuitive no-code interfaces, improving flexibility while reducing dependency on technical teams.

Key Highlights: FY 2025-26 Strong Customer Acquisition and Expansion Momentum

During FY 2025-26, the HR & Payroll business sustained strong growth momentum through improved delivery efficiency, scalable execution models, and repeatable deployment frameworks across geographies. The business added 18 new enterprise customers during the year and expanded coverage by approximately 70.000 employees across SaaS and Managed Services deployments.

The business further strengthened its presence across BFSI, Healthcare, and Technology sectors through several strategic customer wins. These included a US-based healthcare enterprise covering more than 25,000 employees across India and the Philippines, a global Indian technology company with approximately

5.000 employees across Malaysia, UAE, and South Africa with scalability potential exceeding 500,000 employees globally, and two major BFSI clients covering nearly 10,000 employees. Ramco also onboarded a European online food delivery enterprise with more than 5,000 employees across eight APAC countries, along with three additional technology enterprises for multicountry payroll rollouts.

Expansion within existing accounts also remained strong, with several customers transitioning to Ramco Payce, including a global aerospace organization with more than 7,500 employees across 17 countries and a US-based construction and mining equipment major with 9,000 employees.

Recognition and Ecosystem Strengthening

Ramco strengthened its positioning within the global payroll ecosystem through multiple industry recognitions during FY 2025-26. The Company was recognized as a Leader in Everest Group?s APAC Multi-Country Payroll Solutions PEAK Matrix?, reaffirming its capability

to deliver scalable and compliant payroll operations across regions.

The business also received multiple accolades at the HR Vendors of the Year Awards 2025 across Malaysia and Singapore, reflecting continued excellence in product capability, delivery execution, and customer impact.

During the year, Ramco further strengthened its strategic partnership with Workday by becoming a Workday Platinum- Level Innovation Partner and achieving Workday Global Payroll Connect (GPC) certification, reinforcing its positioning among multinational enterprises and global HR transformation programs.

Product and Platform Advancements

During FY 2025-26, Ramco operationalized the Implementation Accelerator Program (IAP), improving deployment speed, implementation consistency, and first-time- right execution across payroll programs.

During FY 2025-26, the business implemented Ramco Payce for more than 25 customers across over 60 countries, with several customers operating across five to ten or more countries.

The integration framework was modernized into a plug-and-play architecture supported by API-based connectors and centralized monitoring capabilities, improving interoperability across payroll, HR, finance, and third- party systems.

The platform also introduced enhanced role-based dashboards, guided workflows, embedded analytics, and simplified navigation capabilities to improve usability and operational decision-making.

The application of AI and automation across payroll operations was strengthened during FY 2025-26, supporting anomaly detection, compliance validation, and bots for employee query resolution. AI-driven anomaly detection with explainable reasoning improved payroll validation before run closure, while automation reduced manual touchpoints across execution workflows. Compliance oversight was further reinforced through the Smart Web Lookup Engine, which continuously tracks regulatory changes across jurisdictions and provides realtime compliance scorecards and alerts, enabling proactive governance rather than reactive correction.

Operational Performance and Delivery Excellence

The payroll business continued strengthening its repeatable delivery model for large multi-country implementations through standardized deployment frameworks and front-loaded validation approaches. These initiatives reduced delivery variability and shortened implementation timelines across complex enterprise deployments.

During FY 2025-26, the business implemented Ramco Payce for more than 25 customers across over 60 countries, with several customers operating across five to ten countries or more.

The platform consistently achieved around 20 country go-lives per quarter, demonstrating strong deployment scalability.

Key customer go-lives included a major airline operator from the Oceania region operating across four countries with more than 2,000 employees, a leading design engineering company across more than 10 countries, and a global professional services organization operating across four countries with over 5,000 employees.

Ramco also successfully onboarded a global French marketing communications firm across six countries, a managed services company with more than 9,000 employees in the Philippines, and two major banking sector clients in Malaysia.

Managed Payroll Services Transformation

The managed payroll services business continued strengthening operational scalability and delivery depth during FY 2025-26. Regional operating structures were realigned to deepen statutory expertise, strengthen accountability, and improve country-specific operational capabilities.

Capability development also remained a key focus area. The business improved its Skill Index from 0.72 to 0.79 during the year and rolled out managed services- specific training and certification programs aligned with operational priorities. These initiatives improved SLA adherence, operational consistency, and workforce readiness across payroll operations.

I Ramco Payce is evolving from a payroll processing platform into a globally scalable and intelligence-led payroll ecosystem supporting the complete payroll lifecycle.

The strategic direction is focused on strengthening automation, analytics, workflow orchestration, and AI-assisted operational capabilities across implementations, compliance management, and payroll execution. Payce uses intelligence derived from historical pay registers, past implementations, and knowledge repositories to auto-suggest configurations and minimize manual intervention.

The Company will continue scaling the Implementation Accelerator Program to improve deployment efficiency and standardization across global payroll implementations.

Ramco is additionally strengthening its partner ecosystem across APAC and global markets through collaborations with system integrators, HRIS implementation firms, workforce management providers, treasury and fintech partners, and wallet-based payment ecosystem providers. These partnerships are expected to enhance market reach, implementation scalability, and integrated solution delivery capabilities. Expansion into additional international markets and continued localization across existing geographies also remain key strategic priorities.

Overall, the business remains focused on expanding its global payroll footprint through operational scalability, platform standardization, stronger ecosystem integration, and intelligence-led payroll transformation.

Ramco Aviation

Industry Dynamics

The aviation industry continues to operate in a highly regulated and operationally intensive environment shaped by rising aircraft utilization, geopolitical tensions, workforce shortages, and supply chain constraints. Airlines, MRO providers, and defense operators are under growing pressure to improve aircraft availability and maintain strict compliance standards while managing costs efficiently.

The growing scale of engine MRO demand is emerging as a major industry focus area. Increased utilization, delayed fleet retirements, and capacity limitations across global maintenance networks are accelerating demand for integrated digital platforms capable of improving engineering and planning accuracy, material readiness and execution efficiency.

The industry is also witnessing increasing adoption of paperless operations, digital records management, predictive maintenance, and connected maintenance ecosystems. At the same time, emerging aviation segments such as urban air mobility and eVTOL ecosystems are expanding the scope of next-generation aviation technology platforms.

Overview

Ramco Aviation provides a cloud-native aviation software platform designed to support the complete lifecycle of aviation operations across airlines, MROs, defense organizations, helicopter operators, and emerging aviation ecosystems.

The platform integrates maintenance, engineering, supply chain, planning, finance, and operational workflows into a unified environment, enabling organizations to improve execution efficiency, coordination, and operational visibility across highly regulated aviation environments.

During FY 2025-26, the business strengthened its positioning across engine MRO, defense aviation, and next- generation mobility ecosystems through strategic customer engagements, product modernization initiatives, and global expansion programs.

Offerings

Ramco Aviation?s platform includes:

Aviation Maintenance and Engineering

Maintenance, Repair and Overhaul (MRO)

Engine MRO Lifecycle Management

Supply Chain and Materials Management

Finance and Accounting

Maintenance Control

Technical Publications Management and Digital Task Card Management

Flight Operations

Mobile-first Maintenance Applications including Mechanic Anywhere, Warehouse Anywhere, and Tool Anywhere

AI Agents Enabling Intelligent Material- Enabled Planning, Reliability Analysis and Part Kitting Decisions

Benefits

The platform enables aviation organizations to improve maintenance turnaround time, optimize resource management and eliminate revenue leakage. Customers benefit from integrated planning workflows, faster information access, real-time material visibility, and financial control.

USPs

Purpose-Built Aviation Platform

Ramco Aviation is designed specifically for aviation operations, integrating maintenance, engineering, supply chain, finance, and operational workflows within a unified lifecyclecentric architecture.

Specialized Engine MRO Capabilities

The platform provides dedicated engine MRO functionalities covering work scoping, planning, material orchestration, configuration tracking, execution management, and billing integration.

Mobile-First Maintenance Execution

Ramco Aviation enables maintenance execution through mobile applications supporting digital sign-offs, findings capture, parts requests, and operational updates directly at the point of work.

Embedded Compliance and Traceability

The platform incorporates audit trails, certification controls, validation mechanisms, and traceability frameworks directly within operational workflows, supporting highly regulated aviation and defense environments.

Interoperable and Scalable Architecture

The platform supports integration across enterprise systems, automated infrastructure, and evolving aviation ecosystems through API-first and interoperable architecture.

An AI-Native MRO Platform, Engineered for the Entire Maintenance Lifecycle

Ramco Aviation embeds artificial intelligence across the full spectrum of maintenance operations, featuring an LLM-powered multilingual conversational interface that delivers real-time insights and automates the extraction of critical information from documents such as Service Bulletins and Airworthiness Directives. This intelligence extends into agentic automation across maintenance, materials, procurement, and commercials, minimizing human intervention and unlocking value from unstructured data. An in-memory optimization engine drives advanced work-order scheduling, resource planning, and MRP, while predictive AI enables failure forecasting, scrap-rate analysis, and non-routine prediction, positioning Ramco Aviation as a truly AI-native MRO solution.

Key Highlights: FY 2025-26 Strategic Go-Lives and Customer Wins

A major milestone during the year was the successful go-live of Ramco Aviation Suite at Korean Air?s Engine Maintenance Center in January 2026. The deployment integrated engine maintenance operations including planning, engineering, supply chain, mobile execution, customer support, and billing workflows. More than 400 users adopted Ramco?s mobile suite, enabling paperless maintenance execution and improved operational productivity.

Indamer Technics, a leading Indian MRO, went live within 45 days from project kickoff. The implementation replaced fragmented manual systems with an integrated digital platform supporting maintenance, engineering, inventory management, and financial workflows.

During FY 2025-26, Ramco secured several strategic wins across engine MRO, helicopter operations, and defense aviation, including engagements with UAMCO, Powerhouse Engines,

GEM India, Sahar Group, and one of India?s leading private defense conglomerates supporting Indian Air Force fleet operations.

Global Expansion and Strategic Collaborations

The Aviation business unit strengthened its geographic presence across North America, Europe, APAC, the Middle East, and India. Growth in India was supported by increasing domestic MRO activity, defense modernization initiatives, and expanding commercial aviation operations.

During the year, Ramco entered into a strategic collaboration with ST Engineering?s Commercial Aerospace business to jointly develop next-generation AI-enabled aviation MRO technologies. The partnership includes plans for a Joint Competency Center and Innovation Lab in Singapore combining operational MRO expertise with digital aviation capabilities.

The Company also expanded its presence within emerging aviation ecosystems through a strategic memorandum of understanding with The ePlane Company to support future eVTOL lifecycle management requirements.

Product and Platform Advancements

During FY 2025-26, Ramco Aviation continued strengthening platform capabilities across analytics, reporting, interoperability, and digital maintenance execution. Ramco Aviation 6.0 was expanded with enhancements across engine maintenance, line maintenance, hangar operations, and component management workflows.

The Company introduced Generative AI- assisted capabilities across documentation workflows, operational information retrieval, and maintenance support processes. AI/ML-powered operational hubs such as Procurement Hub, Work Reporting Hub, and Customer Order Hub were also introduced to improve workflow coordination and execution visibility.

Additional advancements included curated reporting datasets, self-service analytics capabilities, API-first interoperability enhancements, and expanded digital task card functionality. The digitization of Aircraft Maintenance Manuals across multiple modern aircraft platforms was also completed during the year.

I A major strategic priority is the integration of AI, ML, Generative AI, and agentic AI across planning, maintenance execution, operational monitoring, and decision-support workflows. The Company expects increasing adoption of intelligent operational capabilities as aviation operators prioritize automation, predictive planning, and execution efficiency.

Ramco Systems will continue to strive to be a market leader in enterprise software for the global aviation MRO industry, with the engine MRO segment expected to remain a major long-term growth driver, supported by increasing maintenance demand, rising engine shop visits, and growing need for digitally integrated maintenance environments. Ramco will continue strengthening specialized capabilities around engine planning, material orchestration, execution management, and turnaround optimization.

The Company also expects sustained opportunities across airline maintenance operations, defense aviation, helicopter services, and specialized sustainment environments. India is expected to remain a strategically important market supported by expanding domestic MRO infrastructure and aviation sector investments.

Over the longer term, Ramco Aviation aims to expand its relevance across next-generation aviation ecosystems including eVTOL and urban air mobility platforms through scalable and interoperable digital aviation solutions.

Ramco ERP (Including Logistics)

Industry Dynamics

The ERP landscape is undergoing a structural transformation as enterprises transition from legacy, transaction-oriented systems toward intelligent, cloud-native platforms capable of integrating finance, manufacturing, supply chain, logistics, and operational workflows into connected digital ecosystems.

Organizations are increasingly demanding real-time operational intelligence beyond traditional process automation. Customers across manufacturing and industrial sectors are seeking tighter integration between ERP systems, IoT-enabled assets, and Manufacturing Execution Systems (MES) to improve shop-floor visibility, asset utilization, and enterprisewide decision-making.

At the same time, logistics and supply chain management are becoming central to enterprise transformation initiatives. Rising transaction volumes, narrowing margins, increasing billing complexity, and growing demand for execution visibility are accelerating the need for scalable and intuitive logistics platforms capable of supporting rapid onboarding and operational scalability.

Another major market shift is the growing adoption of composable ERP models, where organizations increasingly prefer modular and interoperable systems integrated through APIs rather than monolithic ERP environments. Enterprises are also prioritizing intelligent workflows, conversational interfaces, and self-service operational models that simplify enterprise interactions and improve responsiveness.

Overview

Ramco ERP is a cloud-native enterprise platform integrating finance, manufacturing, supply chain, asset management, and logistics into a unified operational ecosystem. The platform is designed for manufacturing, industrial, asset-intensive, and logistics- driven enterprises requiring connected operational workflows and scalable execution environments.

With logistics embedded within the ERP ecosystem, the platform enables coordination between enterprise planning, operational execution, transportation, warehousing, and financial processes. Ramco ERP combines domain-centric functionality, composable architecture, workflow automation, and self-service capabilities to help enterprises improve agility, process efficiency, and operational coordination.

During FY 2025-26, the business strengthened its positioning across manufacturing and industrial sectors through platform modernization, logistics transformation initiatives, and successful multi-country deployments across global markets.

Offerings

Ramco ERP includes:

Finance and Accounting

Supply Chain Management

Manufacturing and Maintenance Management

Facility and Project Management

Equipment Rental Management

Asset Management and OEE Visibility

Conversational ERP Workflows

BInGO Business Intelligence Platform

Integrated Logistics Suite including:

Transportation Management System (TMS)

Warehouse Management System (WMS)

Billing and Rating

Enterprise Asset Management for Logistics

Hub Management

Route Optimization and Trip Planning

Benefits

The platform enables enterprises to streamline workflows, strengthen coordination across functions, and improve operational transparency across finance, manufacturing, supply chain, and logistics operations. Customers benefit from faster decision-making, improved process efficiency, and simplified enterprise operations through integrated workflows and analytics-driven visibility.

Ramco ERP also supports reduced operational complexity through intuitive interfaces, self-service configurability, and simplified transaction execution. Integrated logistics capabilities help organizations improve route planning, billing accuracy, execution responsiveness, and scalability across high-volume transaction environments.

The platform?s cloud-native architecture and modular deployment framework additionally support faster implementation cycles and improved time-to-value.

USPs

Composable and API-First Architecture

The platform is designed around composable ERP principles, enabling organizations to integrate modular capabilities through scalable API-led architecture while maintaining interoperability and operational flexibility.

Integrated ERP and Logistics Ecosystem

Ramco uniquely combines ERP and logistics operations within a unified architecture, enabling tighter coordination between enterprise planning, transportation, warehousing, execution, and financial processes.

Operational Intelligence and Asset Visibility

The platform enables integration of IoT and MES-driven operational data into ERP environments, improving asset visibility, OEE monitoring, and manufacturing intelligence across industrial operations.

Modernized and User-Centric Logistics Stack

The TMS platform has been modernized into a lightweight and horizontally scalable architecture designed to simplify onboarding, improve usability, and support operational scalability across logistics environments.

Role-Based and Self-Service Experience

Role-based dashboards, configurable workflows, contextual interfaces, and self-service reporting capabilities enable business users to operate with greater autonomy while reducing dependence on IT teams.

Key Highlights: FY 2025-26 ERP Modernization and Product Enhancements

During FY 2025-26, Ramco ERP continued strengthening conversational workflows, workflow automation, and user-centric enterprise experiences across procurement, invoicing, inventory tracking, and operational processes. Conversational ERP capabilities were successfully deployed across select customers, enabling natural language-driven workflow interaction and transaction execution.

The Company also introduced enhancements across accounts payable automation, interactive dashboards, and workflow configurability. Smarter role-based dashboards were actively adopted by customers, improving usability, contextual visibility, and enterprise productivity.

The BInGO analytics platform was expanded with more than 50 dashboards delivering real-time visibility across business and operational workflows. Selfservice configurability capabilities were additionally strengthened, enabling users to independently configure workflows, alerts, and operational rules.

ERP User Meet and Ecosystem Development

A major milestone during the year was the successful hosting of the Ramco ERP User Meet India 2025 in Chennai under the theme Next Frontier with Ramco ERP The event brought together more than 150 participants and 80 global customers to showcase Ramco?s evolving enterprise platform vision and future operational capabilities.

The event featured customer transformation stories, interactive product demonstrations, and discussions around workflow automation, enterprise responsiveness, and future platform direction.

During FY 2025-26, Ramco also signed an MoU with Anna University, Chennai, to establish a dedicated ERP Lab for the university?s Industrial Engineering program, strengthening collaboration between academia and enterprise technology ecosystems.

Customer Growth and Industry Expansion

The ERP business achieved strong customer acquisition momentum during the year, onboarding customers across agricultural, process manufacturing, and discrete manufacturing sectors while successfully meeting targeted order win ratios. Several large manufacturing customers also went live during FY 2025-26, strengthening Ramco?s positioning within industrial and asset-intensive environments.

Earlier investments in interface modernization, workflow simplification, and user experience enhancements contributed to stronger customer engagement and improved win rates during the year.

Logistics Modernization and MultiCountry Rollouts

The logistics business continued strengthening its platform modernization initiatives during FY 2025-26. The TMS application stack is being upgraded into a lightweight and horizontally scalable architecture with simplified workflows and enhanced trip planning capabilities.

A major milestone during the year was the successful go-live of one of the world?s top three global 3PL providers across ANZ and APAC markets. Multi-country logistics rollouts were also completed across ANZ and APAC, with customers becoming live and referenceable.

Implementation timelines were reduced from 9-12 months to 3-5 months, enabling faster go-lives and operational stabilization.

All large and medium customer contracts were successfully renewed during the year, reflecting strong customer retention and platform stickiness.

The Company also strengthened route optimization capabilities in collaboration with its mapping technology partner. The Trip Planning platform was integrated with IPO- driven optimization logic to provide planners with multiple operational alternatives aligned with organizational objectives.

Customer Engagement and Delivery Transformation

A major operational focus area during FY 2025-26 was the shift toward a customercentric organizational structure focused on minimizing customer touchpoints and improving lifecycle continuity. The Company implemented a single-team ownership model where the same teams manage customer engagements from prospecting through implementation and support.

Regular customer cadence programs, site visits, and direct customer participation within the product roadmap process further strengthened engagement quality and alignment between platform evolution and operational requirements.

Recognized among Top 5 WMS Platform Providers by ISCM (The Institute of Supply Chain Management)

ISCM (The Institute of Supply Chain Management) has ranked the Ramco WMS platform as one of the Top 5 platforms that incorporates integrated, cloud-native capabilities spanning inventory control, automation and logistics orchestration.

Its strength enables scalable unified deployments across WMS and TMS while its user experience and procurement productivity supports intuitive role-based workflows.

By embedding AI, voice and mobility into operations, Ramco is shaping intelligent, execution-driven warehouse platforms for evolving supply chain ecosystems.

The ERP business is focused on strengthening intelligent enterprise operations through workflow automation, conversational interfaces, and modular platform scalability across manufacturing, industrial, and logistics ecosystems.

A major strategic priority is the continued expansion of conversational workflows and AI-led orchestration capabilities across focused industry segments. The Company aims to strengthen autonomous operational capabilities that improve execution responsiveness and simplify enterprise interactions.

The business will continue focusing selectively on priority sectors including cement, textiles, industrial equipment manufacturing, medical component manufacturing, and other asset-intensive industries across India, Asia, and the Middle East. The strategy emphasizes focused growth within selected sectors and regions with long-term scale potential.

Within logistics, the Company will continue modernizing the TMS and WMS stack through scalable architecture, simplified workflows, implementation accelerators, and enhanced partner enablement capabilities. Expansion beyond the traditional 3PL segment into shipper-focused solutions is also being evaluated to broaden the addressable market opportunity.

The Company additionally plans to strengthen interoperability and third-party integrations across tracking systems, fuel monitoring platforms, last-mile logistics networks, IoT ecosystems, and MES-driven manufacturing environments. Continued investment in talent development, cross-skilling, and customer-centric delivery models will remain important to sustaining scalability and execution consistency.

With continued platform modernization, strong customer retention, and growing enterprise demand for connected operational ecosystems, the segment remains well-positioned for long-term growth across manufacturing, industrial, and logistics markets.

Industry Dynamics

Enterprise technology is undergoing a structural shift from systems of record toward intelligent execution environments capable of interpreting intent, coordinating agentic AI workflows, and delivering outcomes autonomously. Traditional chatbots and rule-based automation tools are proving inadequate for handling complex, multi-step workflows that require contextual understanding, policy validation, and coordinated execution across enterprise systems.

At the same time, enterprises are facing rising service volumes, fragmented customer journeys, increasing operational complexity, and growing expectations around responsiveness and service consistency. This is driving demand for enterprise AI platforms capable of resolving requests end-to-end while operating within clearly governed operational environments.

Another important industry trend is the growing emphasis on explainable and governable AI systems. Enterprises increasingly require agentic AI-driven workflows that remain transparent, auditable, predictable, and controllable, particularly in regulated and high-volume operating environments. The market is also witnessing increased adoption of conversational interfaces and no-code operational tooling that simplify agentic AI workflow configuration and reduce dependency on specialist technical teams.

Overview

Chia is an AI-native conversational platform designed to automate enterprise interactions and enable end-to-end agentic workflow execution across enterprise environments. The platform combines conversational interfaces with agentic workflow orchestration capabilities integrated directly with enterprise systems of record.

Unlike conventional conversational tools that primarily respond to queries, Chia is designed to coordinate agentic AI workflows, validate operational rules, execute transactions, and manage actions across multiple enterprise applications. The platform is targeted at enterprises operating in high-volume and policy-intensive environments requiring speed, operational consistency, and execution reliability.

Chia represents a key component of Ramco?s broader transition toward AI- native enterprise platforms and agentic workflow-centric automation ecosystems.

Offerings

Chia?s platform capabilities include:

Conversational AI Platform

Multi-Agent Workflow Orchestration

End-to-End Agentic AI Workflow Automation

Natural Language Workflow Configuration

Omnichannel Conversational Interfaces

Enterprise Systems Integration

Policy Validation and Governance Controls

Agentic AI Workflow Observability and Auditability

Human-in-the-Loop Intervention Frameworks

No-Code Configuration Capabilities

Enterprise-Grade Security and Monitoring

Benefits

Chia enables organizations to automate high-volume service workflows while reducing manual intervention and operational effort. The platform supports faster issue resolution, improved responsiveness, and more consistent service experiences across customer interaction environments.

By enabling direct execution across enterprise systems, the platform minimizes repeat interactions, improves workflow coordination, and enhances operational productivity. Organizations also benefit from improved execution transparency and stronger operational oversight through embedded auditability and human-in-the- loop intervention mechanisms.

The platform?s conversational interaction model and no-code configuration capabilities additionally simplify workflow management and operational adaptability across enterprise teams.

Agentic

Workflow Architecture

Chia is designed around an agentic, workflow-driven architecture capable of orchestrating multi-step enterprise workflows with deterministic execution and structured operational logic.

Deep Enterprise System Integration

The platform integrates directly with enterprise systems and APIs to execute transactions, validate operational policies, and update backend systems in real time.

Governed

Operational Frameworks

Built-in validation frameworks, human-in-the-loop controls, workflow logs, and observability capabilities ensure transparency, accountability, and enterprise-grade operational governance across automated agentic AI workflows.

Natural Language and No-Code Configuration

Business and operations teams can configure agentic AI workflows and adapt service logic through natural language instructions and no-code tooling, enabling faster operational adaptation while maintaining centralized controls.

Omnichannel Enterprise Experience

The platform supports conversational interactions across multiple engagement channels while enabling structured handoffs to human agents for exception handling and policy-sensitive scenarios.

Key Highlights: FY 2025-26 Launch of Chia as an Enterprise AI Platform

During FY 2025-26, Ramco launched Chia as an AI-native conversational platform focused on enabling enterprise- scale agentic workflow automation and end-to-end resolution management.

The launch marked Ramco?s strategic entry into next-generation enterprise AI platforms centered around agentic workflow execution and conversational enterprise interactions.

The platform was introduced to address enterprise demand for systems capable of moving beyond conversational assistance toward operational execution across transaction-heavy and policy- driven environments.

Platform Foundation and Operational Readiness

To support long-term scalability, Ramco established foundational capabilities around agentic workflow orchestration, observability, governed automation, and operational monitoring. These capabilities were designed to ensure that automated agentic AI workflows remain auditable, monitorable, and controllable within enterprise production environments.

The platform additionally introduced human-in-the-loop intervention mechanisms enabling enterprises to retain operational oversight while supporting autonomous agentic AI workflow execution within predefined business boundaries. No-code agentic AI workflow tooling and natural language configuration capabilities were also embedded into the platform to simplify operational setup and agentic workflow adaptation.

Early Deployments and Customer Outcomes

Initial pilots and early deployments during FY 2025-26 demonstrated measurable operational improvements across high- volume service environments. Early implementations delivered query deflection levels of up to 70%, reflecting the platform?s ability to autonomously resolve a significant share of customer requests.

Organizations also reported customer satisfaction improvements of approximately 15%, driven by faster response times and improved resolution efficiency. Support cost reductions of up to 50% were achieved through lower manual handling requirements and reduced repeat interactions across service workflows.

The platform additionally demonstrated rapid implementation capability, with initial deployments completed in as little as four weeks.

I Chia represents a strategic pillar within Ramco?s broader transition toward AI-native and agentic workflow-centric enterprise operating ecosystems.

The platform?s strategic direction is focused on expanding agentic AI workflow automation capabilities across enterprise functions while strengthening execution governance, operational observability, and scalable orchestration frameworks. Ramco aims to expand Chia beyond customer interaction environments into broader enterprise agentic workflow coordination use cases requiring integrated execution across multiple systems and operational layers.

A major focus area going forward will be enhancing no-code agentic AI workflow tooling, conversational interfaces, and enterprise integration depth to support faster adaptation and operational scalability. The Company also plans to continue strengthening human-in-the-loop mechanisms, monitoring capabilities, and operational oversight frameworks to support adoption across regulated and mission-critical environments.

With increasing enterprise demand for intelligent agentic AI workflow execution, operational automation, and connected enterprise interactions, Chia is expected to emerge as an important enterprise automation layer within next-generation digital operating ecosystems.

Financial Performance

In line with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company must disclose significant changes (variation of >25% as compared to the previous financial year) in sector-specific key financial ratios, as well as any changes in return on net worth. We have identified the key financial ratios listed in the table below, which we track only at the consolidated level.

Key Financial Ratios

Particulars	March 31,2026	March 31,2025
Interest Coverage Ratio	13.17	(4.37)
Current Ratio	1.03	0.82
Debt-Equity Ratio (Including Lease Liabilities)	0.12	0.17
Operating Profit Margin	756%	(3.64%)
Net Profit Margin	5.97%	(5.79%)
Product Revenue to Total Revenue	39.72%	39.39%
Return on Net Worth	11.96%	(10.85%)
R&D Spend to Revenue	12.02%	12.98%
Days Sales Outstanding (DSO)	51	47

Detailed Explanation for Significant Changes in Sector-Specific Key Financial Ratios and Changes in Return on Net Worth:

Return on Net Worth:

The net profit for the year was Rs. 418.40 Mln. against net loss of Rs. 342.48 Mln. (refer PAT analysis given below). Mainly because of this, the equity attributable to equity holders of the parent has increased to Rs. 3,499.70 Mln. from Rs. 3,15779 Mln., resulting in improvement in return on net worth to 11.96% for the current year from (10.85%) during the previous year.

Operating Profit Margin (OPM):

The OPM for the year worked out to 756% as against (3.64%) due to improvement in EBIT (refer PAT analysis given below) compared to the previous year.

Net Profit Margin (NPM):

The NPM for the year worked out to 5.97% as against (5.79%) due to increase in PAT compared to the previous year.

The Increase in the PAT is Analyzed below:

Particulars	Rs. Mln.
Increase in Revenue	1096.10
Increase in Other Income	1723
Increase in Purchase of Stock in Trade	(19.54)
Increase in Employee Benefits Expense	(426.60)
Decrease in Depreciation and Amortization Expense	114.21
Decrease in Provision for Doubtful Debts	78.36
Increase in Other Expenses	(114.78)
Increase in Share of Profit of Associate	0.11
Increase in EBIT	745.09
Decrease in Finance Costs	9.04
Lower Taxes	8.59
Increase in Non-Controlling Interests	(1.84)
Increase in PAT Attributable to Shareholders of the Company	760.88

Interest Coverage Ratio:

The finance costs have gone down to Rs. 40.21 Mln. during the current year from Rs. 49.25 Mln. during the previous year

The interest on loans and finance charges were Nil during the current year compared to Rs. 1.17 Mln. during the previous year, on account of no borrowings during the year.

The interest on lease liabilities have marginally gone down to Rs. 40.21 Mln. during the current year compared to Rs. 48.08 Mln. during the previous year.

At the same time, the profit before interest and tax has significantly improved to Rs. 529.71 Mln. during the current year from net loss of Rs. 215.38 Mln. during the previous year.

The above had resulted in the betterment in interest coverage ratio to 13.17 for the current year from (4.37) for the previous year.

Debt-Equity Ratio:

There were no borrowings at the end of both the years. Debt-Equity ratio has decreased to 0.12 as at the end of the current year compared to 0.17 as at the end of the previous year, on account of decrease in lease liabilities.

Current Ratio:

The Current Ratio has increased by 25.61% i.e., from 0.82 as at the end of the previous year to 1.03 as at the end of the current year. Current assets increased by 40.73% mainly due to increase in investment in fixed deposits under cash and cash equivalents and while current liabilities increased marginally by 12.76%.

		(Rs. in Mln.)
Particulars	As at the end of the current year	As at the end of the previous year
CURRENT ASSETS
Trade Receivables	1,121.26	923.04
Other Financial Assets	108.28	41.69
Other Current Assets	430.32	29739
Others	1,418.46	925.34
Total	3,078.32	2,18746
CURRENT LIABILITIES
Trade Payables	649.50	571.65
Lease Liabilities	146.08	139.98
Others	2,20746	1,951.62
Total	3,003.04	2,663.25
Current Ratio	1.03	0.82

Challenges

Key Challenges	Strategic Responses
Competitive Intensity and Industry Positioning	Sharpening differentiation across offerings, strengthening value delivery, maintaining cost discipline, and prioritizing customer-focused solution design.
Workforce Attrition and Talent Management	Building workforce stability through engagement, competitive pay, career progression pathways, and a supportive work environment.
Regulatory Changes and Policy Environment	Monitoring regulatory developments, participating in relevant policy-related engagements, and adapting operations to remain compliant across regions.
Currency Movement and Forex Exposure	Applying disciplined currency risk management, using hedging mechanisms where required, and aligning inflows and outflows to reduce exposure.
Macroeconomic Variability and Demand Cycles	Improving operating efficiency, diversifying revenue streams, and maintaining financial stability through prudent management.
Technology Evolution and Adoption Pace	Investing in AI, ML, and automation capabilities, and assessing implementation outcomes and risks before scaling.
Changing Employee Expectations	Supporting talent attraction and retention through flexible work structures, clear role definition, and learning opportunities.
Sustainability and Environmental Requirements	Strengthening ESG-related practices and incorporating environmentally responsible approaches into operations.
Data Protection and Compliance Requirements	Enhancing internal data governance systems and ensuring adherence to global data protection frameworks such as GDPR.
Increasing Competitive Pressure across Segments	Driving continuous innovation, improving customer experience, and expanding into new market opportunities.
Rapid Technology Shifts and Short Product Cycles	Strengthening R&D efforts, enabling workforce reskilling, and adopting agile execution models.
Geopolitical Developments and Trade Disruptions	Strengthening business continuity planning and diversifying geographic presence to reduce concentration risks.

Risk Management

Risk Category	Potential Impact	Mitigation Strategy
Intellectual Property Protection	Misuse or unauthorized use of intellectual assets may lead to loss of competitive advantage, revenue impact, and reputational concerns.	Continuous monitoring and enforcement of intellectual property rights, strengthening protection mechanisms across products and platforms, and periodic review of the IP portfolio.
Cybersecurity and Data Protection	Security incidents such as data breaches or malware attacks may result in financial loss, regulatory implications, and erode stakeholder trust.	Deployment of advanced threat detection and prevention systems, use of encryption and secure access controls, regular security audits and system testing, and ongoing employee awareness programs.
Regulatory and Legal Compliance	Non-adherence to applicable laws and regulations can lead to legal exposure, penalties, and reputational impact.	Dedicated compliance oversight, continuous monitoring of regulatory updates, engagement with legal advisors, and ensuring adherence to regulations across operating regions.
Shifts in Customer Preferences	Changes in customer expectations and technology adoption may influence demand patterns and product relevance.	Continuous tracking of industry trends and customer requirements, regular evaluation and enhancement of offerings, and aligning business strategies with evolving market needs.
Prpt& Talent Availability and Retention	Inability to attract and retain skilled professionals may impact execution, innovation, and service delivery.	Competitive compensation, structured career development, employee engagement and retention initiatives, and strengthening succession planning and internal talent pipelines.
Foreign Exchange Exposure	Variations in currency exchange rates may impact revenue realization, margins, and cash flows.	Hedging strategies for key currencies (USD, SGD, AUD) and aligning currency inflows and outflows to reduce exposure.
Environmental and Social Risks	Energy consumption and resource usage create environmental impact. Further, changes in social and regulatory requirements, including data protection laws and workforce expectations, may affect operations and compliance obligations.	Environmental Reducing energy consumption through efficient equipment upgrades, adopting LED lighting and water conservation measures across facilities.
		Social/Data-related Strengthening cybersecurity through advanced detection and response systems, and implementing data loss prevention frameworks. Enforcing privileged access management, adopting zero-trust network principles, strong encryption protocols, and conducting periodic third-party security audits.
High Competitive Intensity	Strong competition from established players can impact pricing flexibility and profitability.	Continued focus on product innovation, strengthening differentiation, maintaining cost efficiency, and nurturing long-term customer relationships.
Technology Obsolescence	Rapid technology changes may reduce the relevance of existing products and solutions.	Investing in ongoing R&D, adopting new and emerging technologies, and encouraging continuous innovation across teams.

Internal Control Systems

The Company maintains an internal control framework to ensure accurate financial reporting, regulatory compliance, and safeguarding of assets. These controls are reviewed periodically. Financial processes are supported by an ERP system. Internal audits are conducted by an independent firm and reviewed by the Audit Committee, which also considers inputs from statutory auditors.

Based on the evaluation under the Companies Act, 2013 and SEBI (LODR), the internal financial controls were found to be adequate and operating effectively as of March 31, 2026.

Disclosure of Accounting Treatment

In the preparation of financial statements, there were no deviations from the treatments prescribed in the applicable Accounting Standards.