Robokidz Eduventures Ltd Management Discussions

OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "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 our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factor.

BUSINESS OVERVIEW

Our Company is engaged in the business of providing education and skill development solutions to K-12 students in the areas of Robotics, Coding, Electronics and STEM (Science, Technology, Engineering and Mathematics). We are focusing on delivering application-based learning programs intended to support the development of scientific aptitude, logical reasoning and technical skills among school students. This comprehensive delivery model allows us to bridge theoretical concepts with hands-on technological education across K-12 schools and institutions.

Our Company was originally incorporated on December 23, 2014 as "Robokidz Eduventures Private Limited", a private limited company pursuant to a certificate of incorporation issued by the Registrar of Companies, Pune. Subsequently, our Company was converted into a public limited company and the name of our Company was changed to "Robokidz Eduventures Limited" on April 21, 2026.

We have consistently grown in terms of our revenues over the past years our revenues from operation were Rs 3,816.59 lakhs in F.Y. 2023-24, Rs 5,875.28 lakhs in F.Y.2024-25 and Rs 9,322.31 lakhs in the FY 2025-26. Our Net Profit after tax for the above- mentioned periods are Rs 242.35 lakhs, Rs 497.82 lakhs and Rs 1,005.69 lakhs respectively.

FINANCIAL KPIs OF THE COMPANY

Particulars	For the year ended March 31, 2026 (Consolidated)	For the year ended March 31, 2025 (Standalone)	For the year ended March 31, 2024 (Standalone)
Revenue from Operations (Rs in Lakhs) (1)	9322.31	5875.28	3816.59
Growth in Revenue from Operations (%)	58.67%	53.94%	132.26%
Total income (2)	9371.62	5915.85	3831.06
EBITDA (Rs in Lakhs) (3)	1665.80	900.20	488.82
EBITDA Margin (%) (4)	17.77%	15.22%	12.76%
Profit / (Loss) for the year attributable to the equity shareholders of the company (Rs in Lakhs) (5)	1,005.69	497.82	242.35
PAT Margin (%) * (6)	10.79%	8.47%	6.35%
Net worth (7)	2,066.61	1,060.92	438.10
Return on Equity ("RoE") (8)	56.46%	66.42%	76.47%
Return on Capital Employed ("RoCE") (%) (9)	29.64%	33.46%	25.18%
Net Asset Value Per Share (Post bonus) (Rs) (10)	35.74	15.16	21.91
Debt- Equity Ratio (11)	1.19	1.45	3.26
Total Borrowings (12)	2,980.33	1,534.31	1,429.18

Notes:

1) Revenue from operations represents the revenue from sale of service & product & other operating revenue of our Company as recognized in the Restated financial information. Total income includes revenue from operations and other income.

2) Total income includes revenue from operations and other income

3) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year and adding back interest cost, depreciation, and amortization expense.

4) EBITDA margin is calculated as EBITDA as a percentage of total income.

5) Restated profit for the period / year.

6) PAT Margin (%) is calculated as Profit for the year as a percentage of Revenue from Operations.

7) Net-worth means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the restated balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation (Refer Regulation 2 of Chapter - I of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018).

8) Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year/ period divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholders funds) for the year.

9) Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective period/year. (Capital employed calculated as the aggregate value of Tangible networth, total debt and deferred tax liabilities)

10) Net asset value per share calculated as Net Assets divide by total no of outstanding shares.

11) Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

12) Total Borrowings includes Long term borrowings and short term borrowings.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

- Our business is working capital intensive. If we are unable to generate sufficient cash flows to allow us to make required payments, there may be an adverse effect on our results of operations

- Our business is dependent on schools, institutions and our channel partners for student enrolments. Any inability to maintain or expand such relationships with schools and institutions may adversely affect our business and results of operations.

- A significant portion of our revenue from operations is derived from certain geographic regions, particularly Maharashtra, and any adverse developments affecting such regions may adversely affect our business, results of operations and financial condition.

- The Company does not own the properties from which it operates. In the event the Company is unable to renew its existing lease arrangements or if such renewals are executed on terms that are not favourable, it may result in disruption to operations or require relocation of its premises. Any such disruption or relocation may lead to additional costs and may have an impact on the Companys business, results of operations, cash flows and financial condition.

- Changes in education policies or government regulations may affect our course offerings, operations, compliance requirements and may adversely affect our business.

- If we cannot maintain and expand our existing client base, our business, financial condition, cash flows and results of operations may be adversely affected.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The restated consolidated summary statement of assets and liabilities of the Company as at March 31, 2026 and standalone summary statement of assets and liabilities of the Company as at March 31, 2025 and 2024 and the related restated consolidated summary statement of profits and loss and cash flows for the year ended March 31, 2026 and the related restated standalone summary statement of profits and loss and cash flows for the year ended March 31, 2025 and 2024 (herein collectively referred to as ("Restated Summary Statements") have been compiled by the management from the consolidated audited Financial Statements of the Company for the year ended March 31, 2026 and standalone audited Financial Statements for the year ended on March 31, 2025 and 2024 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") issued by SEBI and Guidance note on Reports in Company Prospectuses (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the BSE in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements.

The restated financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The restated financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions resulting in unrealized profits or losses as per Accounting Standard 21 – "standalone Financial Statements" notified by Companies (Accounting Standards) Rules, 2021.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of business, the Company has determined its operating cycle as twelve months for the purpose of current – non-current classification of assets and liabilities.

b) USE OF ESTIMATES

The preparation of the restated financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c) PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS

(i) Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

(ii) Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

(iii) Intangible Under Development

Cost of Intangible Assets not ready for use before the balance sheet is disclosed as Intangible Assets under development.

d) DEPRECIATION / AMORTISATION

Depreciation on fixed assets is calculated on a written - down value method using the rates arrived at based on the useful lives as prescribed under the Schedule II to the Companies Act, 2013.

Intangible assets including internally developed intangible assets are amortised on straight line method basis over 3 years in pursuance of provisions of AS-26.

e) INVENTORIES

Inventories comprise raw materials, consumables, and stock-in-trade. Raw materials and consumables are measured at the lower of cost and net realisable value. The cost of raw materials and consumables is determined using the First-In, First-Out (FIFO) method. Cost includes the purchase cost and an appropriate allocation of indirect costs incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale.

The cost of stock-in-trade is determined using the First-In, First-Out (FIFO) method. Cost includes the purchase price, duties, and taxes (other than those subsequently recoverable from government authorities). Net realisable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale.

The Company does not have any work-in-progress or finished goods inventory as at the reporting date. The Company is engaged in the business of setting up educational laboratories, wherein projects are executed and completed within the same financial period. Materials are procured and utilised based on specific customer requirements, and the completed laboratory set-ups are delivered and handed over upon completion of installation. Accordingly, no work-in-progress or finished goods inventory exists as at the reporting date.

Provision for inventory obsolescence is reviewed periodically, considering factors such as estimated usage, shelf life, technological changes, and prevailing market conditions.

f) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

g) INVESTMENTS

"Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

Investment properties comprise immovable properties held to earn rentals and/or for capital appreciation and are not intended for use in the production or supply of goods or services or for administrative purposes. Such properties are carried at cost less accumulated depreciation and impairment losses, if any. Depreciation is provided in the manner and over the useful lives prescribed for fixed assets in accordance with the applicable provisions of the Companies Act, 2013."

h) FOREIGN CURRENCY TRANSLATIONS

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

i) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

j) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

k) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate collection and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods or rendering of services. Revenue is measured at the consideration received or receivable and is recognized net of discounts, rebates and taxes collected on behalf of the Government.

a) Revenue from Educational Lab Setup Projects

Revenue from educational lab setup projects comprising supply of educational kits, equipment and allied installation and training services is recognized when the significant risks and rewards of ownership in the goods are transferred to the customer and the related services are rendered in accordance with the terms of the contract. Where installation and training services are incidental to the supply of kits and equipment, revenue is recognized upon delivery and completion of the installation and training obligations or acceptance by the customer, as specified in the contract.

b) Revenue from Services

Subscription Charges are recognized on a time proportion basis over the subscription period during which the related services are provided.

Franchise Fees are recognized in accordance with the terms of the franchise agreement and when the related services and obligations under the agreement are substantially performed. Ongoing franchise support fees, if any, are recognized over the period in which the related services are rendered.

Other Service Income is recognized as and when the related services are rendered, in accordance with the contractual terms and when no significant uncertainty exists regarding its collectability.

Revenue recognition is postponed to the extent of any significant uncertainty regarding the measurement or ultimate collection of the consideration.

l) OTHER INCOME

Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

m) TAXES ON INCOME

"Income taxes are accounted for in accordance with Accounting Standard (AS-22) – "Accounting for taxes on income", notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961."

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

n) LEASES

Operating lease payments are recognized as an expense in the statement of Profit and Loss on systematic basis over the lease term. Short term lease payments are recognised as and when paid.

o) CASH AND BANK BALANCES

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance (with original maturity is more than three months but less than twelve months).

p) EARNINGS PER SHARE

"Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares."

q) EMPLOYEE BENEFITS

Defined Contribution Plan:

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the statement of profit and loss.

Defined Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year.

r) SEGMENT REPORTING

"The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"."

(The remainder of this page is intentionally left blank)

RESULTS OF OUR OPERATIONS

Based on Financial Statements of Profit & Loss as Restated

Particulars	For the year ended March 31, 2026 (Consolidated)	% of Total**	For the year ended March 31, 2025 (Standalone)	% of Total**	For the year ended March 31, 2024 (Standalone)	% of Total**
INCOME
Revenue from Operations	9,322.31	99.47%	5,875.28	99.31%	3,816.59	99.62%
Other Income	49.31	0.53%	40.57	0.69%	14.47	0.38%
Total Income (A)	9,371.62	100.00%	5,915.85	100.00%	3,831.06	100.00%
EXPENDITURE
Purchase of Stock-in-Trade	4,597.30	49.06%	5,305.55	89.68%	2,353.62	61.44%
Cost of material consumed	1,629.60	17.39%	355.26	6.01%	309.27	8.07%
Direct Expenses	980.76	10.47%	68.74	1.16%	87.13	2.27%
Changes in inventories of stock-in-trade	59.59	0.64%	(997.82)	(16.87%)	381.97	9.97%
Employee benefits expense	183.66	1.96%	110.81	1.87%	99.49	2.60%
Finance costs	294.82	3.15%	246.27	4.16%	155.06	4.05%
Depreciation and amortization expense	44.25	0.47%	36.75	0.62%	22.37	0.58%
Other expenses	218.14	2.33%	118.64	2.01%	95.79	2.50%
Total Expenses (B)	8,008.12	85.45%	5,244.20	88.65%	3,504.70	91.48%
Profit before tax (A-B)	1,363.50	14.55%	671.65	11.35%	326.36	8.52%
Tax expense/ (benefit)
(i) Current tax	363.97	3.88%	177.19	3.00%	85.17	2.22%
(ii) Deferred tax expenses/(credit)	(6.16)	(0.07%)	(3.36)	(0.06%)	(1.16)	(0.03%)
Net tax expense/ (benefit)	357.81	3.82%	173.83	2.94%	84.01	2.19%
Profit attributable to equity shareholders of holding company	1,005.69	10.73%	497.82	8.42%	242.35	6.33%

*Total refers to Total Revenue

Components of our Profit and Loss Account

Income

Our total income comprises of revenue from operations and other income.

Revenue from Operation

The Revenue from operations as a percentage of our total income was 99.47%, 99.31% and 99.62% for the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively.

(Amount Rs in Lakhs)

Particulars	For the year ended 31 March 2026 (Consolidated)	For the year ended 31 March 2025 (Standalone)	For the year ended 31 March 2024 (Standalone)
Revenue from Educational lab setups	7,201.67	5,324.61	3,225.26
Sale of Services	2,120.64	550.67	591.33
TOTAL	9,322.31	5,875.28	3,816.59

Other Income

Our other Income consists of Interest on fixed deposit, Commission, Rental Income, Sundry balances written back, Grant income and Miscellaneous income.

(Amount Rs in Lakhs)

Particulars	For the year ended 31 March 2026 (Consolidated)	For the year ended 31 March 2025 (Standalone)	For the year ended 31 March 2024 (Standalone)
Interest Income on FD	34.42	36.12	10.44
Commission	10.00	-	-
Rental Income	1.78	2.66	2.86
Sundry balances written back	-	0.10	1.17
Grant income	-	1.50	-
Miscellaneous Income	3.11	0.19	-
TOTAL	49.31	40.57	14.47

Expenditure

Our total expenditure primarily consists of Purchase of Stock-in-Trade, Cost of material consumed, Direct Expenses, Employee benefit Expenses, finance Cost, Depreciation & Amortization expenses and Other Expenses.

Cost of material consumed

Our cost of material consumed comprises of Purchases of materials.

Direct Expenses

Particulars	For the year ended 31 March 2026 (Consolidated)	For the year ended 31 March 2025 (Standalone)	For the year ended 31 March 2024 (Standalone)
Lab Refurbishment Expenses	26.51	-	3.24
Freight and transport expenses	24.52	9.54	11.40
Packaging expenses	4.81	0.07	0.01
Training expenses	3.45	8.14	23.70
Custom duty and clearing charges	1.63	1.68	2.71
Labour charges	48.41	49.31	77.65
Education Support Services Expenses	138.55	-	-
Tender Fees	0.83	-	1.48
LMS subscription charges	420.80	-	-
Installation and setup charges	311.25	-	-
TOTAL	980.76	68.74	87.13

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Directors Remuneration, Contribution to Provident and other funds, Gratuity expenses, Incentive to Staff and Staff Welfare expenses.

Finance costs

Our Finance cost expenses comprise of Bank charges, BG Commission charges, Bill discounting charges and Interest on Debentures, Borrowing, Statutory dues, MSME Creditors.

Other Expenses

Our other expenses primarily comprise of Auditors Fees, Advertisement and marketing Expenses, Rent and Taxes, Legal and Professional Expenses, Office Expenses, Printing & Stationary, Subscription Charges, Travelling Expenses, Insurance and CSR Expenses.

(Amount Rs in Lakhs)

Particulars	For the year ended 31 March 2026 (Consolidated)	For the year ended 31 March 2025 (Standalone)	For the year ended 31 March 2024 (Standalone)
Advertisement and marketing Expenses	58.57	23.37	18.58
Audit Fees
- Statutory audit	2.51	2.00	0.75
- Tax audit	0.75	1.00	1.00
- Others	-	-	0.25
Brokerage & Commission Charges	1.96	10.00	5.51
Electricity Expenses	2.51	2.43	1.80
Rent, Rates and taxes	37.01	16.42	13.73
Repairs and Maintenance	3.20	4.28	2.43
Miscellaneous Exps	0.33	1.66	2.34
Legal & Professional Expenses	26.43	21.85	19.25
Office Expenses	13.39	3.54	6.07
Fuel Expenses	-	-	1.23
Product Certification expenses	1.78	1.25	-
Postage and Courier	0.36	0.38	0.59
Printing & Stationery	19.00	1.58	2.27
Subscription Charges	10.29	7.82	2.57
Telephone & Broadband Expenses	0.81	1.31	0.65
Travelling Expenses	16.40	13.07	12.85
Late fees and penalties	0.90	0.05	-
Penalty for Late Deployment	0.36	2.38	1.90
Insurance Expenses	7.46	0.96	1.37
CSR expenses	7.99	-	-
Expenses related increase in authorized capital	-	1.64	-
Consumables for research	3.23	1.65	0.65
Foreign exchange gain loss	0.20	-	-
Balance written off	2.70	-	-
Total	218.14	118.64	95.79

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

Fiscal 2026 compared with fiscal 2025

Revenue from Operations

The Revenue from Operations of our company for fiscal year 2026 was Rs 9,322.31 Lakhs against Rs 5,875.28 Lakhs for Fiscal year 2025. An increase of 58.67% in revenue from operations. This increase was due to increase in services Sales significantly from Rs550.27 Lakhs to Rs2,112.40 Lakhs during the same period, on account of higher revenue from implementation, installation, training, AMC, and other value-added educational support services. The growth was supported by a combination of growth in the core Educational Lab Setup business, substantial expansion and diversification of the services portfolio, strong growth in YEG Subscription revenue, retention of existing customers and acquisition of new customers. The growth was therefore broad-based, with both the project-based and service-oriented businesses contributing to the increase in the scale of operations.

Other Income

The other income of our company for fiscal year 2026 was Rs 49.31 Lakhs against Rs 40.57 for Fiscal year 2025. The increase of 21.54% in other income. This increase was primarily attributable to higher commission income, increased discounts received from suppliers, rental income from residential property, and retention amounts forfeited during the year.

Total Income

The total income of the company for fiscal year 2026 was Rs 9,371.62 Lakhs against Rs 5,915.85 Lakhs of total income for Fiscal year 2025 with an increase of 58.42 % in total income. The increase in Total Income was primarily due to higher sales arising from the execution of new projects, growth in the service revenue segment, and an increase in commission income recorded under Other Income during Fiscal Year 2026.

Expenditure

Purchase of Stock-In-Trade

In Fiscal 2026, Purchase of Stock-in-Trade of our company was Rs 4,597.30 lakhs against in Rs 5,305.55 lakhs in fiscal 2025. This was due to higher procurement of raw materials for in-house manufacturing and assembly of educational laboratory setups, resulting in reduced procurement of finished goods for trading.

Cost of material consumed

In Fiscal 2026, cost of material consumed were Rs 1,629.60 Lakhs against Rs 355.26 Lakhs of Cost of material consumed in fiscal 2025. An increase of 358.71%. The increase was primarily attributable to higher procurement and consumption of raw materials for execution of new projects and increased in-house manufacturing and assembly activities to meet higher customer demand.

Direct Expenses

In fiscal 2026, Our Direct Expenses were Rs 980.76 Lakhs and Rs 68.74 Lakhs in fiscal 2025. An increase of 1326.77%. The increase in Direct Expenses was primarily due to higher LMS subscription costs, educational support service expenses, freight and transportation, lab refurbishment, installation and other project execution costs incurred for new projects and the expansion of the Companys service offerings during Fiscal 2026.

Employee Benefit Expenses

In Fiscal 2026, the Company incurred employee benefit expenses of Rs 183.66 Lakhs against Rs 110.81 Lakhs expenses in fiscal 2025. An increase of 65.74%. The increase was primarily attributable to expansion of the workforce to support business growth, annual salary revisions, and recruitment of additional technical, project execution, and administrative personnel.

Finance Costs

The finance costs for the Fiscal 2026 were Rs 294.82 Lakhs while it was Rs 246.27 Lakhs for Fiscal 2025. An increase of 19.71%. The increase in finance costs was primarily due to higher utilization of working capital borrowings and other credit facilities to support business expansion, increased inventory requirements, and execution of new projects during Fiscal 2026.

Other Expenses

In fiscal 2026, our other expenses were Rs 218.14 Lakhs and Rs 118.64 Lakhs in fiscal 2025. An increase of 83.87%. This increase was due to higher advertisement and marketing expenses, office and administrative expenses, rent, travelling, printing and stationery, legal and professional fees, and other operational costs incurred in line with the expansion of business operations and execution of new projects during Fiscal Year 2026.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2026 of Rs 1,363.50 Lakhs against profit before tax of Rs 671.65 Lakhs in Fiscal 2025. An increase of 103.01%. This increase was primarily driven by higher revenue from the execution of new projects, a higher contribution from the service business with better margins, increased sales volumes, and higher commission income under Other Income. The resulting improvement in the revenue mix and operating leverage more than offset the increase in operating and finance costs, leading to higher profitability.

Profit/ (Loss) after Tax

Profit after tax for Fiscal 2026 was Rs1,005.69 Lakhs, as against Rs497.82 Lakhs in Fiscal 2025, an increase of 102.02%. This was primarily driven by a 58.67% growth in Revenue from Operations, from Rs5,875.28 Lakhs to Rs9,322.31 Lakhs, along with an improved revenue mix, with service revenue increasing from Rs550.27 Lakhs to Rs2,112.40 Lakhs on account of higher implementation, installation, training, AMC and value-added educational support income, which generally carries higher margins than product/trading sales. The Company also transitioned from procurement of finished goods for trading to in-house assembly of educational laboratory setups, resulting in Cost of Materials Consumed increasing to Rs1,629.60 Lakhs and Purchase of Stock-in-Trade reducing to Rs4,597.30 Lakhs, contributing to an improvement in gross margin from 19.46% to 22.04%. This, together with improved operating leverage, higher commission income, and finance costs rising by only 19.71% as against revenue growth of 58.67%, resulted in Profit Before Tax margin improving from 11.43% to 14.63%, translating into the 102.02% growth in Profit After Tax.

Fiscal 2025 compared with fiscal 2024

Revenue from Operations

The Revenue from Operations of our company for fiscal year 2025 was Rs 5,875.28 Lakhs against Rs 3,816.59 Lakhs for Fiscal year 2024. An increase of 53.94% in revenue from operations. This increase was due to our core Educational Lab Setup business, where revenue rose from Rs3,225.27 Lakhs in Fiscal 2024 to Rs5,328.43 Lakhs in Fiscal 2025, on account of a higher number of school lab installations executed during the year. This was further supported by new revenue streams such as YEG subscriptions and channel sales introduced during Fiscal 2025.

Other Income

The other income of our company for fiscal year 2025 was Rs 40.57 Lakhs against Rs 14.47 for Fiscal year 2024. An increase of 180.37% in other income. This increase was due to higher interest income on fixed deposits, with Interest on HDFC FD rising from Rs10.44 Lakhs in Fiscal 2024 to Rs36.12 Lakhs in Fiscal 2025, on account of higher fixed deposit balances maintained during the year. This was further supplemented by grant income of Rs1.50 Lakhs recognised under Marketing & Promotion during Fiscal 2025.

Total Income

The total income of the company for fiscal year 2025 was Rs 5,915.85 Lakhs against Rs 3,831.06 Lakhs of total income for Fiscal year 2024 with an increase of 54.42 % in total income. his increase was primarily attributable to higher Revenue from Operations driven by growth in the Companys core Educational Lab Setup business on account of increased execution of school laboratory installation projects during the year. The increase was further supported by the introduction of new revenue streams, including YEG subscriptions and channel sales, as well as higher interest income earned on fixed deposits due to increased fixed deposit balances maintained during the year

Expenditure

Purchase of Stock-In-Trade

In Fiscal 2025, Purchase of Stock-in-Trade of our company was Rs 5,305.55 lakhs against in Rs 2,353.62 lakhs in fiscal 2024. This was due to higher volume of business during the year, as the Company scaled up procurement of components, kits and materials to support the increased number of educational lab setup installations, in line with the growth in revenue from operations Fiscal 2025.

Cost of material consumed

In Fiscal 2025, cost of material consumed were Rs 355.26 Lakhs against Rs 309.27 Lakhs of Cost of material consumed in fiscal 2024. An increase of 14.87 %. This increase was due to higher consumption of raw materials, components and consumables during Fiscal 2025, in line with the increased volume of lab setup projects and installations executed during the year as compared to Fiscal 2024.

Direct Expenses

In fiscal 2025, Our Direct Expenses were Rs 68.74 Lakhs and Rs 87.13 Lakhs in fiscal 2025. A decrease of 21.11%. This decrease was due to lower Training on Site Expenses, which fell from Rs22.79 Lakhs in Fiscal 2024 to Rs8.03 Lakhs in Fiscal 2025 as on-site training was progressively delivered in-house, partly offset by higher Labour Charges (up from Rs39.35 Lakhs to Rs49.31 Lakhs) in line with increased installation volumes.

Employee Benefit Expenses

In Fiscal 2025, the Company incurred employee benefit expenses of Rs 110.81 Lakhs against Rs 99.49 Lakhs expenses in fiscal 2024. An increase of 11.38%. This increase was due to higher employee salaries in line with headcount additions and increments, and an increase in director remuneration, partially offset by a reduction in staff welfare and stipend expenses during the year.

Finance Costs

The finance costs for the Fiscal 2025 were Rs 246.27 Lakhs while it was Rs 155.06 Lakhs for Fiscal 2024. An increase of 58.82%. This increase was due to primarily due to higher interest on borrowings, with interest expenses rising from Rs131.84 Lakhs in Fiscal 2024 to Rs171.50 Lakhs in Fiscal 2025 on account of increased utilisation of working capital and term facilities, together with a sharp rise in loan, BG and LC processing fees (up from Rs2.22 Lakhs in Fiscal 2024 to Rs39.40 Lakhs in Fiscal 2025) as the Company availed additional credit facilities during the year.

Other Expenses

In fiscal 2025, our other expenses were Rs 118.64 Lakhs and Rs 95.79 Lakhs in fiscal 2024. An increase of 23.85%. This increase was mainly on account of higher legal, professional, sales promotion and subscription costs incurred during Fiscal 2025 to support the scaling up of operations and the proposed public issue, partially offset by lower professional and office expenses as compared to Fiscal 2024.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2025 of Rs 671.65 Lakhs against profit before tax of Rs 326.36 Lakhs in Fiscal 2024. An increase of 105.80%. This increase was primarily attributable to the significant growth in Revenue from Operations driven by higher revenue from the Educational Lab Setup business due to increased execution of school laboratory installation projects during the year. The increase was further supported by the introduction of new revenue streams, including YEG subscriptions and channel sales, as well as higher interest income earned on fixed deposits.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2025 were at Rs 497.82 Lakhs against profit after tax of Rs 242.35 Lakhs in fiscal 2024, An Increase of 105.41%. This increase was primarily attributable to the increase in Profit Before Tax, driven by higher revenue from the Educational Lab Setup business, introduction of new revenue streams such as YEG subscriptions and channel sales, and higher interest income.

Cash Flows

(Amount Rs in lakhs)

Particulars	For the year ended March 31, 2026 (Consolidated)	For the year ended March 31, 2025 (Standalone)	For the year ended March 31, 2024 (Standalone)
Net Cash Flow from/ (used in) Operating Activities	(509.61)	(209.81)	(364.47)
Net Cash Flow from/ (used in) Investing Activities	(12.49)	20.21	(107.38)
Net Cash Flow from/ (used in) Financing Activities	523.38	46.73	234.13

Cash Flows from Operating Activities

1. For the year ended March 31, 2026, Net cash flow used in operating activities was Rs 509.61 Lakhs. This comprised of the net profit before tax of Rs 1,363.50 Lakhs, which was primarily adjusted for Interest expenses of Rs 258.05 Lakhs, Unrealized foreign exchange gain of Rs 0.20 Lakhs, Gratuity provision of Rs 4.19 Lakhs, Balance written off of Rs 2.70 Lakhs, Rental Income of Rs 1.78 Lakhs, Interest income of Rs 34.42 lakhs and Depreciation of Rs 44.25 lakhs. The resultant operating profit before working capital changes was Rs 1,636.69 Lakhs, which was primarily adjusted for an increase in Trade Receivables of Rs 3,682.81 Lakhs, Loans & advances of Rs 100.09 Lakhs, Other Assets of Rs 82.98 Lakhs and Trade Payables of Rs 1,846.75 Lakhs. Additionally, there was a decrease in Inventories of Rs 59.59 Lakhs and Other current liabilities & Provision of Rs 380.60 Lakhs.

Cash generated from operations was Rs 703.45 Lakhs, which was reduced by direct tax paid of Rs 193.84 Lakhs, resulting into net cash flow from operating activities of Rs 509.61 Lakhs.

2. For the year ended March 31, 2025, Net cash flow from operating activities was Rs 209.81 Lakhs. This comprised of the net profit before tax of Rs 671.65 Lakhs, which was primarily adjusted for Interest expenses of Rs 191.80 Lakhs, Gratuity provision of Rs 0.84 Lakhs, Unspent Liabilities and Provisions Write back of Rs 0.10 Lakhs, Rental Income of Rs 2.66 Lakhs, Interest income of Rs 36.12 lakhs and Depreciation of Rs 36.75 lakhs. The resultant operating profit before working capital changes was Rs 862.16 Lakhs, which was primarily adjusted for an increase in Loans & advances of Rs 82.73 Lakhs, Other Assets of Rs 194.87 Lakhs, Inventories of Rs 997.82 Lakhs and Other current liabilities & Provision of Rs 124.15 Lakhs. Additionally, there was a decrease in Trade Receivables of Rs 712.30 Lakhs and Trade Payables of Rs 552.32 Lakhs.

Cash generated from operations was Rs 129.13 Lakhs, which was reduced by direct tax paid of Rs 80.68 Lakhs, resulting into net cash flow from operating activities of Rs 209.81 Lakhs.

3. For the year ended March 31, 2024, Net cash flow used in operating activities was Rs 364.47 Lakhs. This comprised of the net profit before tax of Rs 326.36 Lakhs, which was primarily adjusted for Interest expenses of Rs 140.09 Lakhs, Gratuity provision of Rs 1.40 Lakhs, Unspent Liabilities and Provisions Write back of Rs 1.17 Lakhs, Rental Income of Rs 2.86 Lakhs, Interest income of Rs 10.44 lakhs and Depreciation of Rs 22.37 lakhs. The resultant operating profit before working capital changes was Rs 475.75 Lakhs, which was primarily adjusted for an increase in Trade Receivables of Rs 2,018.19 Lakhs, Loans & advances of Rs 21.58 Lakhs, Other Assets of Rs 44.55 Lakhs, Other current liabilities & Provision of Rs 160.17 Lakhs and Trade Payables of Rs 747.27 Lakhs. Additionally, there was a decrease in Inventories of Rs 381.97 Lakhs.

Cash generated from operations was Rs 319.16 Lakhs, which was reduced by direct tax paid of Rs 45.31 Lakhs, resulting into net cash flow from operating activities of Rs 364.47 Lakhs.

Cash Flows from Investment Activities

1. For the year ended March 31, 2026, net cash used in investing activities was Rs 12.49 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs 62.16 Lakhs, Interest income received of Rs 34.42 Lakhs, Acquisition of subsidiary of Rs6.60 Lakhs and Rental received of Rs 1.78 Lakhs.

2. For the year ended March 31, 2025, net cash flow from investing activities was Rs 20.21 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs 18.57 Lakhs, Rental received of Rs 2.66 Lakhs and Interest income received of Rs 36.12 Lakhs.

3. For the year ended March 31, 2024, net cash used in investing activities was Rs 107.38 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs 120.68 Lakhs, Rental received of Rs 2.86 Lakhs and Interest income received of Rs 10.44 Lakhs.

Cash Flows from Financing Activities

1. For the year ended March 31, 2026, net cash flow from financing activities was Rs 523.38 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs 1,718.44 Lakhs, Repayment of borrowing of Rs 1,001.53 Lakhs and Interest expenses paid of Rs 193.53 Lakhs.

2. For the year ended March 31, 2025, net cash flow from financing activities was Rs 46.73 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs 575.95 Lakhs, Repayment of borrowing of Rs 345.82 Lakhs and Interest expenses paid of Rs 183.40 Lakhs.

3. For the year ended March 31, 2024, net cash flow from financing activities was Rs 234.13 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs 659.20 Lakhs, Repayment of borrowing of Rs 300.19 Lakhs and Interest expenses paid of Rs 124.88 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from continuing Operations

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations," beginning on page 177 and 185 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

3. Known trends or uncertainties that have/had or are expected to have a material adverse impact on revenue or income from continuing operations

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page 22 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end services as well as the government policies and other economic factors.

5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page 104 of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segment.

Except as disclosed elsewhere in the Red Herring Prospectus, we have not announced any new products or business segments.

8. The extent to which business is seasonal.

Our business is affected by changes in academic calendars, examination schedules, vacation periods, admission cycles or educational policies implemented by schools, educational boards or institutions.

9. Any significant dependence on a single or few suppliers or customers

Our business is dependent on few clients. Our top 10 customers contributed 77.99%, 92.95% and 96.60% of revenue from operations for F.Y. ending on 2026-25, 2025-24 and 2024- 23 respectively.