Sambhaav Media Ltd Management Discussions

GLOBAL SCENARIO:

For FY 2025-26, the global economy operated in an environment marked by heightened geopolitical instability, persistent inflationarypressures, elevated energy prices, supply chain vulnerabilities and cautious monetary policies adopted by major central banks across the world. The year witnessed a complex interplay between economic resilience and geopolitical disruptions, significantly influencing trade flows, investor sentiment, commodity markets and global growth projections. The continuing Russia-Ukraine conflict remained one of the most significant geopolitical concerns during the year. The prolonged war adversely impacted global energy security, food supply chains and commodity prices, particularly across Europe and emerging economies dependent on energy imports. Economic sanctions imposed by Western nations on Russia and retaliatory measures contributed to volatility in crude oil, natural gas and fertilizer markets. The disruption in grain exports from the Black Sea region also created pressure on global food prices, thereby contributing to inflationary concerns across several countries.

Simultaneously, during the later part of FY 2025-26 the escalating tensions in the Middle East further intensified global uncertainty. The ongoing conflict involving Israel, Iran and allied regional forces raised serious concerns regarding the stability of global oil supply routes, particularly around the Strait of Hormuz, a strategically critical channel for global crude oil transportation. The possibility of supply disruptions led to fluctuations in crude oil prices and increased volatility in international financial markets. Rising energy costs exerted pressure on manufacturing, transportation and logistics sectors worldwide, thereby impacting business profitability and consumer spending patterns.

Global inflation continued to remain a key economic challenge during later part of FY 2025-26, although inflationary trends moderated gradually in certain advanced economies compared to previous years. Elevated food prices, energy costs, wage pressures and supply chain disruptions kept inflation above targeted levels in several countries. Major central banks including the U.S. Federal Reserve, European Central Bank and Bank of England continued to maintain relatively tight monetary policies and elevated interest rate regimes in order to control inflation and stabilize financial markets. Higher borrowing costs impacted capital investments, housing markets and consumer demand globally.

The global economy also experienced increased trade fragmentation and protectionist tendencies during the year. Geopolitical rivalries between major economies, especially between the United States and China, contributed to uncertainty in global trade and technology supply chains. Several multinational corporations continued adopting "China Plus One" strategies and diversified manufacturing bases to reduce geopolitical and supply chain risks. This trend created opportunities for emerging economies such as India to position themselves as alternative manufacturing and investment destinations. According to the International Monetary Fund (IMF), global economic growth remained moderate amid persistent uncertainties. While inflationarypressures showed signs of easing in certain economies, downside risks continued due to geopolitical tensions, higher tariffs, trade restrictions and energy market disruptions. The IMF projected global growth to remain subdued, reflecting the fragile balance between economic recovery and geopolitical instability.

The year also witnessed volatility in global financial markets due to concerns surrounding inflation, interest rates, sovereign debt levels and geopolitical risks. Investors remained cautious amid fears of economic slowdownandpotentialstagflationin several developed economies. Currency fluctuations and capital flow volatility affected emerging markets, while elevated interest rates increased debt servicing burdens for governments and corporations globally.

Energy security emerged as a major strategic priority for nations across the world. Countries accelerated investments in renewable energy, energy diversification and strategic reserves to reduce dependence on volatile fossil fuel markets. Governments globally intensified focus on sustainability, climate resilience and clean energy transitions, despite short-term economic pressures arising from geopolitical conflicts and inflation.

Despite global economic headwinds, emerging economies, particularly India, demonstrated relatively stronger resilience supported by domestic demand, infrastructure investments, digital transformation and policy reforms. India continued to attract global investor interest due to its stable macroeconomic, environment, expanding digital ecosystem and favourable demographic profile. Overall, FY 2025-26 remained a year characterized by geopolitical volatility, cautious global growth, inflationary pressures, energy market disruptions and evolving economic realignments. While challenges persisted across major economies, the period also accelerated structural changes in global trade, digital transformation and strategic economic partnerships, laying the foundation for new opportunities in the evolving global economic landscape.

INDIAN ECONOMIC SCENARIO:

The Indian economy continued to demonstrate strong resilience and macroeconomic stability during FY2025-26 despite a challenging global backdrop characterized by geopolitical tensions, supply chain disruptions, elevated energy prices and slowing global trade. India maintained its position as one of the fastest-growing major economies in the world, supported by robust domestic demand, sustained public capital expenditure, expanding digital infrastructure, improving manufacturing capabilities and stable financial systems. The countrys economic fundamentals remained strong, aided by prudent fiscal management, controlled inflation, resilient banking sector performance and continued structural reforms by the Government. Indias Gross Domestic Product (GDP) growth for FY2025-26 is estimated in the range of 6.4% to 6.7%, reflecting continued economic momentum despite global uncertainties. The Indian economy crossed the USD 4 trillion mark during the fiscal year in nominal terms, reinforcing its emergence as the worlds fourth-largest economy.

Indias long-term economic growth trajectory remains highly promising, with the economy projected to expand substantially in both PPP and market exchange rate terms. GDP in PPP terms is expected to increase from nearly USD 10 trillion in FY2023 to around USD 44 trillion by FY2049, while GDP at market exchange rates may rise to over USD 35 trillion during the same period. The projections indicate sustained growth supported by rising domestic consumption, infrastructure development, manufacturing expansion, and digital transformation. The widening economic scale also highlights Indias increasing globaleconomicsignificance and competitiveness. Overall, the outlook underscores Indias emergence as a major global economic powerhouse over the coming decades.

Indias share in global GDP is projected to witness a sharp and sustained rise over the coming decades, increasing from around 5% in 2000 to nearly 26% by 2060. The projections indicate that India is likely to emerge as one of the largest contributors to global economic output, driven by strong domestic demand, demographic advantages, and rapid industrial and infrastructure development. In contrast, the relative share of developed economies such as the United States, Japan, and Germany is expected to gradually decline over the same period. Chinas share is projected to remain dominant for a considerable period before moderating in the later years. The trendhighlights significantshift in global economic power towards emerging economies, with India positioned as a key driver of future global growth.

Inflationarypressures moderated considerably during FY2025-26 compared to earlier years, supported by stable commodity prices, improved agricultural output and proactive monetary management by the Reserve Bank of India (RBI). Consumer Price Index (CPI) inflation averaged around 4.5% during the fiscal year and largely remained within the RBIs tolerance band. Food inflation witnessed moderation owing to favorable monsoon conditions and adequate buffer stock management by the Government. Wholesale Price Index (WPI) inflation remained relatively subdued at approximately 2.5% to 3.0%, benefiting industrial input costs and supporting corporate profitability. The moderation in inflation enhanced household purchasing power and supported private consumption demand across urban as well as rural markets. The Reserve Bank of India maintained a balanced monetary policy approach during FY2025-26 aimed at supporting growth while ensuring inflation stability. The repo rate remained broadly stable around 6.00% 6.25% during most of the fiscal year, while systemic liquidity conditions remained adequate through Open Market Operations (OMOs), variable rate repo auctions and forex interventions. Banking system liquidity remained comfortable despite global tightening conditions, helping maintain healthy credit growth across sectors including retail, MSMEs, infrastructure and services. Credit growth in the banking sector remained strong at around 13% 14% year-on-year during FY2025-26.

Indias fiscal position remained stable and disciplined despite elevated public spending on infrastructure, welfare schemes and strategic investments. The Union Government maintained its fiscal consolidation roadmap, targeting a fiscal deficit of approximately 4.5% of GDP for FY2025-26. Strong tax collections, rising economic activity and improved tax compliance supported Government revenues during the year. Gross GST collections consistently remained above 1.9 lakh crore per month during several months of FY2025-26, while direct tax collections registered healthy double-digit growth. Advance tax collections and corporate tax receipts reflected improved profitability across multiple sectors of the economy. The Governments continued focus on digitization, faceless assessments and widening of the tax base further improved revenue efficiency and compliance levels.

The Government continued to emphasize capital expenditure-led growth during FY2025-26. Infrastructure spending remained a key pillar of economic expansion, with capital expenditure allocations exceeding 11.5 lakh crore during the fiscal year. Investments in highways, railways, airports, logistics parks, renewable energy, urban infrastructure and digital connectivity continued at an accelerated pace. Major initiatives such as PM Gati Shakti, Bharatmala, Dedicated Freight Corridors, Smart Cities Mission and renewable energy programs supported long-term productivity and employment generation. Indias logistics efficiency and supply chain integration improved significantly due to sustained investments in multimodal transport infrastructure.

Indias external sector remained relatively stable despite volatile global trade conditions and geopolitical uncertainties. Merchandise exports witnessed moderate growth amid weak global demand conditions, while services exports continued to perform strongly led by IT services, financial services, consulting and Global Capability Centers (GCCs). Total exports of goods and services Total exports of goods and services remained above USD 800 billion during FY2025-26, highlighting Indias growing integration with global markets. Import levels remained elevated primarily due to crude oil, electronics, machinery and gold imports. However, India continued to benefit from diversified energy sourcing strategies, including discounted crude imports and strategic trade agreements.

The Current Account Deficit (CAD) remained manageable during FY2025-26 and is estimated at around 1.0% 1.3% of GDP, supported by strong services exports and robust remittance inflows exceeding USD 130 billion. Indias Balance of Payments position remained comfortable despite periodic foreign portfolio investment outflows arising from global financial market volatility. Foreign exchange reserves remained strong in the range of USD 680 billion to USD 700 billion, providing an import cover of over 11 months and enhancing macroeconomic resilience against external shocks. The Indian Rupee remained relatively stable compared to several emerging market currencies despite volatility in global currency markets.

India continued to strengthen its manufacturing ecosystem under the Governments "Atmanirbhar Bharat" initiative and Production Linked Incentive (PLI) schemes. Key sectors including electronics, semiconductors, renewable energy equipment, pharmaceuticals, automobiles, defence manufacturing and mobile handset production witnessed substantial investments during the year. India emerged manufacturing as significant and export hub for smartphones and electronics, with multiple multinational companies expanding operations under the "China Plus One" strategy. The Make in India and Atmanirbhar Bharat initiatives further enhanced domestic value addition, employment generation and supply chain resilience.

Artificial Intelligence (AI), digital transformation and automation emerged as major growth drivers across industries during FY2025-26. Indian businesses increasingly adopted AI-driven technologies across media, financial services, healthcare, manufacturing, logistics and customer engagement platforms. Generative AI, data analytics, cloud computing and automation technologies significantly improved operational efficiencies and digital content delivery systems. India also witnessed rapid growth in AI startups, digital infrastructure and innovation ecosystems supported by government initiatives and private sector investments. The expansion of 5G networks, digital public infrastructure and data connectivity further accelerated digital adoption across urban and rural markets.

Indias banking and financial sector remained one of the strongest pillars of FY2025-26. Gross Non-Performing Assets (GNPA) of scheduled commercial banks declined further to nearly 2.8% 3.0%, the lowest level in over a decade, reflecting improved asset quality, effective recoveries and prudent underwriting standards. Bank profitability improved significantly due to healthy credit growth, improved margins and lower provisioning requirements. Capital adequacy levels remained strong across public and private sector banks. Financial inclusion initiatives continued to expand banking penetration, digital payments and access to formal credit across rural and semi-urban areas.

Digital payments and fintech adoption continued witnessing exponential growth during the year. Unified Payments Interface (UPI) transactions crossed record levels both in volume and value terms, reaffirming Indias leadership in digital financial infrastructure globally. The Governments Digital India initiative continued to support financial inclusion, digital commerce governance systems.

The agriculture sector remained stable during FY2025-26 supported by favorable monsoon conditions, increased mechanization and government support measures. Foodgrain production remained near record highs, supporting rural income and consumption demand. Rural infrastructure investments, irrigation projects and agri-technology adoption contributed to improved agricultural productivity and rural economic resilience. Employment generation improved across sectors including infrastructure, services, manufacturing, tourism and digital industries. However, challenges tourism and digital industries. However, challenges relating to skill development, youth employment and labor force participation continued to require policy attention. Government initiatives focusing on skilling, entrepreneurship, startups and MSME development continued to support employment opportunities and formalization of the economy.

Geopolitical developments including the Russia-Ukraine conflict, Middle East tensions and evolving global trade alignments continued influencing Indias economic and strategic priorities during FY2025-26. India maintained a balanced geopolitical approach while strengthening trade relationships with major global economies and enhancing domestic supply chain security. The country continued to actively engage with strategic international forums including G20, BRICS, Quad and SCO, thereby enhancing its global economic and diplomatic positioning.

Looking ahead, Indias medium-term economic outlook remains positive, supported by strong domestic demand, favorable demographics, infrastructure-led growth, digital transformation, manufacturing expansion and policy continuity. While risks from global slowdown, commodity price volatility, climate-related disruptions and geopolitical uncertainties persist, Indias diversified economic base, resilientfinancialsector and ongoing structural reforms are expected to provide sustained growth momentum over the coming years.

Overall, FY2025-26 reaffirmed Indias position as one of the most major economies globally. Supported by prudent macroeconomic management, fiscal discipline, infrastructure investments, digital innovation and expanding manufacturing capabilities, India continued strengthening its economic foundation while positioning itself as a key driver of global growth in the evolving economic landscape.

INDUSTRY OVERVIEW:

Indias Entertainment and Media (E&M) sector continues to demonstrate robust growth momentum and is expected to expand from approximately INR 245 thousand crore in 2023 to nearly INR 365 thousand crore by 2028, registering a CAGR of 8.3%. The sectors growth is being primarily driven by Indias strong mobile-first digital ecosystem, with consumers spending a significant portion of their time on mobile-based entertainment and media platforms. Emerging segments such as digital media, online gaming, animation, VFX, live events and music concerts are witnessing rapid expansion, supported by favourable demographics, technological advancement and policy support, with several sunrise segments growing at over 15% CAGR. Indias large millennial and Gen Z population, widespread internet penetration, increasing smartphone usage and affordable data costs continue to strengthen the consumption landscape. Despite contributing less than 2% to the global E&M industry, India remains one of the fastest-growing media markets globally, supported by rising incomes, expanding digital infrastructure, startup innovation and favourable foreign investment policies.

The Indian Media & Entertainment industry continued its strong growth momentum during FY2025-26, driven by rapid digital adoption, rising advertising spends, expanding regional content consumption, and increasing demand for immersive entertainment experiences. According to the latest FICCI-EY and PwC industry reports, Indias M&E sector reached approximately 2.78 lakh crore in 2025 and is expected to maintain a healthy growth trajectory over the coming years, supported by digital media, live events, OTT platforms, gaming, and AI-led content ecosystems. India remains one of the fastest-growing media markets globally, aided by its large youth population, expanding internet penetration, affordable mobile data, and rising smartphone adoption. Digital media emerged as the largest segment within the industry, crossing the 1 lakh crore revenue milestone for the first time, reflecting the significant structural shift in consumer behavior toward mobile-first and on-demand content consumption.

There is strong growth potential of advertising revenues across major global markets between 2023 and 2028. While the United States and China continue to dominate in absolute advertising revenues, emerging economies such as India and Indonesia are projected to witness some of the fastest growth rates during the period. Indias advertising market is expected to grow from approximately USD 101 billion in 2023 to around USD 158 billion by 2028, registering a robust CAGR of 9.4%, reflecting the rapid expansion of digital media consumption and advertising spends. Indonesia is projected to record the highest CAGR of 9.8%, while mature markets such as Japan, Australia, and South Korea are expected to witness relatively moderate growth. The projections underline a clear shift in advertising momentum towards high-growth emerging economies driven by rising internet penetration, smartphone usage, digital transformation, and increasing consumer spending. Overall, the data indicates sustained global advertising expansion with Asia emerging as a key driver of future industry growth.

The FM radio industry demonstrated stable operational performance despite intense competition from digital audio streaming platforms and podcasts. Radio continued to remain a highly trusted and localized medium, particularly across tier-2, tier-3 cities and semi-urban markets, where regional engagement and community connect remained strong. FM listenership remained healthy due to its affordability, accessibility, and hyperlocal relevance, especially for regional advertisers, retail brands, FMCG companies, healthcare providers, educational institutions, and government campaigns. The industry also witnessed increased monetization through non-traditional revenue streams such as branded content, radio events, influencer-led programming, podcast production, on-ground activations, and digital simulcasting partnerships. Several leading radio networks strengthened their digital presence through mobile applications, YouTube streaming, OTT audio integrations, and proprietary podcast channels targeting younger urban audiences.

Innovation and technology adoption emerged as key themes across both the news media and FM radio segments during FY2025-26. Media companies accelerated investments in artificialintelligence, cloud-based broadcasting systems, automated editing tools, data analytics, voice-enabled content distribution, and personalized audience engagement technologies. Social media integration, WhatsApp-based news dissemination, interactive live content, and second-screen engagement strategies became increasingly important for retaining audience attention in an evolving digital ecosystem. The rapid expansion of Connected TVs, smart devices, 5G connectivity, and high-speed broadband infrastructure further strengthened digital content consumption and real-time audience interaction across platforms.

The sector also experienced the impact of global macroeconomic and geopolitical developments during the year. Persistent geopolitical tensions, fluctuations in commodity prices, inflationary pressures, and global economic uncertainties influenced advertising sentiment and consumer spending patterns across several industries. However, Indias media sector displayed strong resilience due to diversified revenue streams, regional expansion, and increasing digital monetization opportunities. Major sporting events, elections, live concerts, cultural festivals, and religious gatherings significantly boosted audience engagement and advertising revenues across television, digital media, radio, and live entertainment platforms during the year. Live entertainment and experiential media emerged as some of the fastest-growing segments within the overall M&E ecosystem.

Looking ahead, the Indian Media & Entertainment industry is expected to continue its robust growth trajectory, supported by favorable demographics, technological advancement, rising discretionary spending, and rapid digital transformation. Industry analysts project sustained growth in digital advertising, OTT streaming, gaming, regional content, animation, VFX, creator economy platforms, and live experiences over the next five years. The continued rollout of 5G services, growth in connected devices, AI-led personalization, and deeper internet penetration are expected to create significant opportunities for content creators, broadcasters, publishers, and advertisers. Regulatory support, policy reforms, ease of doing business, and increasing foreign investments are also likely to strengthen the sectors long-term outlook and global competitiveness.

Overall, FY2025-26 marked another transformative year for Indias Media & Entertainment industry, particularly for the news media and FM radio segments, which continued to adapt successfully to changing consumer preferences and technological disruption. The sector maintained its central role in Indias social, cultural, democratic, and economic landscape through innovation, regional expansion, and diversified monetization strategies. Going forward, the industrys focus is expected to remain on quality content creation, digital integration, audience engagement, technological innovation, and sustainable revenue models to unlock the next phase of long-term growth and value creation.

Future Outlook of Industry:

ArtificialIntelligence Media: and Automationin

Artificial Intelligence (AI) is rapidly transforming the Media and Entertainment industry by reshaping content creation, distribution, audience engagement, and monetization strategies. AI-driven technologies are increasingly being used in advertising for audience targeting, predictive analytics, and improving campaign efficiency while optimizing costs. In content creation and publishing, AI tools are enabling automated content generation, categorization, personalization, and trend analysis, leading to faster and more data-driven decision-making. The music and film industries are leveraging AI for personalized recommendations, scriptwriting support, editing assistance, and streamlining production workflows. In the gaming segment, AI content generation, intelligent simulations, and customized gameplay environments. Overall, AI adoption is driving innovation, operational efficiency, and deeper consumer engagement across the entire media and entertainment ecosystem.

Development of Direct-to-Consumer (D2C) Communities:

Radio stations are set to continue expanding their role in community building, leveraging interactive formats such as gaming, quizzes, and other engagement-driven content to foster loyalty and deepen connections with their audiences. These efforts not only generate valuable audience data but also allow radio to serve targeted segments with highly relevant content, increasing the potential for monetization. By building niche communities, radio broadcasters can create opportunities for transaction-based revenue streams. Additionally, news and community podcasts are gaining prominence as key tools for strengthening D2C connections, enabling personalized and community-centric content delivery.

The Rising Importance of Content Production:

With smartphone penetration set to surpass TV screen penetration by 2025, content production is expected to become even more critical for media companies. Radio broadcasters, harnessing the inherent entertainment potential of their programming teams, are increasingly exploring short-form and episodic content as new revenue-generating avenues. The boom in mobile usage is opening up vast opportunities, particularly with voice-based products on smart speakers and smartphones, offering further avenues for growth. Radio stations are positioning themselves to capitalize on this growing demand by diversifying their content offerings and expanding into new formats.

The Growing Popularity of Internet Radio:

As the demand for personalized listening experiences rises, internet radio is becoming an increasingly significant component of the media landscape. By offering improved sound quality, internet radio provides listeners with an enhanced experience that goes beyond traditional broadcast radio. Many radio stations are establishing partnerships with online streaming that includes both internet radio and curated music streaming, platformstooffer creating a seamless listening experience for users.

Shift of Advertisers Towards Digital Audio:

The transition of radio advertising towards digital audio continues to gain momentum in 2025. Marketers are leveraging digital platforms to more precisely target audiences based on location, demographics, and listening habits, tailoring their messaging and creative content accordingly. Radio stations, both traditional AM/FM and digital-first platforms, are offering a complete digital ad package to advertisers. The use of programmatic advertising tools is becoming widespread, enabling radio stations to enhance their revenue For ad buyers, programmatic advertising offersgreater efficiency streamswhile automatingtheirworkflow. and effectiveness, allowing for more targeted campaigns and improved return on investment. This shift is contributing to the growing convergence between radio broadcasters and other media and technology companies, with collaborations designed to reduce production costs and offer a wider range of services to advertisers and listeners alike.

Adoption of Radio Automation Software:

Automation software is playing a pivotal role in the transformation of radio broadcasting. By enabling 24/7 operations and streamlining workflows across multiple markets, radio stations are reducing operational costs while allowing their creative teams to focus on content creation. This shift towards automation not only ensures operational efficiency but also opens up more opportunities for content radio industry continues to evolve, the widespread adoption of automation technologies will be key to maintaining competitiveness in a fast-changing media landscape.

THE COMPANY:

Business Area

Your Company operates in M&E industry with newspaper, magazine in print media, News Channel in electronic media; and GPS, Web application in digital media. Your Company is a complete media house having presencein Print to Electronic Media. The product portfolio of your Company (as mentioned in detail in the initial part of this report) comprises innovative, technology based and established products that have top-of-mind recall and are leaders in their respective categories. Your Company has successfully started all permitted FM frequency in Late 2022 and have presence at Gujarat i.e. Bhavnagar, Jamnagar, Junagadh, Porbandar, Veraval, Mehsana, Bharuch, Baderwah, Kathua, Poonch, Godhra, Kargil, Leh. This strategically puts your Company to advantage in saturating the Gujarat market, while diversifying the geographical presence.

The Company has developed a unique business model of print to electronic media. Your Company has successfully leveraged the newspaper expertise to grow into other associated businesses like TV channels and such innovative products/solutions for readers, advertisers, viewers, and now listeners of FM and unique techno-based communication projects. An integrated well-balanced print-to-electronic presence provides hedging. This diversified model of business has shown great strength and resilience in the past years of challenging business environment. While Vehicle Tracking System contract of GSRTC assure timely and confirmed recovery of dues, whereas the advertisements ensure better profitability margins.

Over a period of time your company has successfully transformed as a techno media infrastructure developer with unique blend of product mix of technology and media products. The Company has positioned itself uniquely where competition is low, risk is diversified by leveraging past experiences and expertise.

Project Selection and Execution

Your Companys comprehensive evaluation of opportunities in media projects includes the following parameters:

Advertiser: Constitution, financial strength, bureaucratic structure, track record with others/ us, contract management strength, appropriateness of advertisement for local market, etc.

Pre-development: Financing flexibility to fund the content generation, community/ political participation/ opposition, government stability over the life of the project, regulatory approval delays, etc.

Finance: Commercial viability of the project, capacity of the lender to evaluate and speed in providing the credit lines, repayment mechanism, credit availability on viable terms, etc.

Publishing/ broadcasting: Viability of the design/technology, availability of artists and content, outlook of content cost, contentprovider failure, etc.

Market: Local economic conditions, demand-supply outlook, interest/ inflation rate scenario, etc.

Your Company has developed fundamental understanding of the process and its many facets. To be successful, your Company must manage not only its own performance, but also the collaboration of numerous professionals representing multiple disciplines. Throughout this process, your Company has to identify and mitigate inherent risks that can threaten the viability of the project. It is broadly evaluated in three parts: 1) preliminary considerations, market analysis, financial analysis, and strategic marketing; 2) content selection and due diligence, royalties, entitlements, permissions, etc.; and 3) publishing and broadcasting management. Hence, with sufficient due-diligence the project is selected and execution is carried-out accordingly by your Company. Your Companys Quality Management System is ISO 9001:2015 accredited by QSA International, UK that include Planning, Design & Development, Execution and Operations Activities for Media Products.

Project Management and Monitoring:

Your Company has adopted an integrated system for planning, scheduling, monitoring and control of the approved project under implementation. To co-ordinate and synchronize all the support function of Project Management it relies on an Integrated Project Management Control System which integrates its project management, contract management and control function addressing all stages of project implementation from concept to commissioning. Various features for information delivery of ERP facilitate project tracking, issues resolution and management interventions on a regular basis. Integrated ERP platform for monitoring and controlling of critical project activities spread across various functions projects, contracts, finance and execution. This will help in decision support through timely identification of critical input and provide a holistic approach towards project implementation and major project milestones.

Financial Resources

The foremost source of finance of your Company has traditionally been internal accruals and low-cost borrowings predominantly from banking arrangements. Your Company has made financial arrangement with banks by availing credit facilities and reclassification of existing credit facilities and financial institutions for its various long-term and working capital requirements.

OPPORTUNITIES

The M&E industrypresentssignificantgrowth potential, driven by the accelerating pace of urbanization.

As cities expand and new digital avenues emerge, there will be increased demand for content and services that support local economies and enrich the lives of citizens. Various government initiatives, such as the introduction of integrated vehicle tracking systems and Smart TV platforms, are further expected to create new growth avenues for media companies, allowing them to expand their reach and influence. These shifts represent a unique opportunity for players in the M&E space, and our company is strategically positioned to leverage these developments in its home state, which remains a key growth hub for India.

The governments push to include radio functionality in mobile handsets is expected to drive up listener engagement, enabling radio stations to reach broader audiences across regions. As the digital medium continues to capture the publics attention, radio is increasingly adopting innovative approaches to remain a central player in content creation. Whether through on-the-ground events, branded content, or podcasts, radio stations are diversifying their revenue streams and offering holistic solutions to advertisers. This transformation is creating exciting opportunities for companies to enhance their earnings and strengthen their market position in the ever-evolving media landscape.

Apart from traditional media products, your Company aggressively bidding and participating in various technology embedded projects in media sector i.e Prasar Bhati, GSRTC, and other Government agencies. The company foresee ample opportunities of unique techo-media projects because of tail wind due to infrastructural development for Common Wealth Games, Olympic, increased in live concerts and events etc. The Company is ready to capture and seize such opportunities to accelerate growth.

THREATS RISKS & CHALLENGES:

Fast Changing Technologies: The biggest threat being faced by the Media and Entertainment Industry is about fast changing technology. Only a few percentages of players in the media industry are welcoming new technologies to their area of work, while the majority are hesitant and are concerned about the backfire or the trouble these new "uncommon" solutions will cause. This results in dependency on outdated methodologies making it difficult for the players to communicate business between themselves. Use of terms like "big data", "artificial intelligence", "automation" etc.

Cyber Attack: The other most important threat presently being faced is increasing Cyber Attack instances. Attackers frequently use surface, deep and dark web chatrooms and forums to plan attacks, choose targets and sell hacking services. This chatter can become useful intelligence for media and entertainment agencies looking to thwart attacks on talent, fans and brand before they occur. Early warning of stolen credentials, account hacking attempts and impersonations is necessary to protect media brands and talent alike. Within the media and entertainment industry, ZeroFox identified 450,000 incidents related to cyber attack chatter within the specified time period.

Scale of audience: Understanding the scale of change of online audiences and digital media in India is constraints affecting growth and smooth functioning of your Company. The industry in which your Company operates is highly evolving and is becoming techno driven. The change is trend in society impacts substantially to the business of your Company.

Macroeconomic environment: Macroeconomic environment can be a potential source of risk. Moderating growth, along with high inflation, can adversely impact advertising revenues of your Company, which forms the largest component of your Companys revenues.

Changing Trend: It may not be possible to consistently predict audience tastes. Peoples tastes vary quite rapidly along with the trends and environment they live in. In such markets it is virtually impossible to make prediction.

Competitive environment: Your Company operates in highly competitive environment that is subject to innovations, changes and varying levels of resources available to each player in each segment of business. Your Company has been able to maintain its business volumes in circulations and/ or advertisements despite of the major affecting factors e.g. changes in technology, social trends, lifestyle of the people, competition with the other local/regional media houses.

Apart that your Company has identified various risks associated with the business and its mitigating steps as under.

Risk	Explanation	Mitigation Approach
Pandemic risk	Any epidemic/pandemic can cause interruption/disruption in the execution and business	Your Company Operates in media sector which includes both kind of employees such as field work and non field work. Media sector is accountable for latest updates/impact/effect in economy and there actual status. Therefore strict adherence to the government/ HSE guidelines in place and in addition to that your Company focuses to ensure the health and safety of all employees, labourers, suppliers and channel partners, while initiating stringent measures to control costs and strengthen cash flows
Interest rate risk	Your Companys interest costs are impacted by market rates.	Your Companys liquidity and borrowing are managed by professional at Senior management level. The interest rate exposureof your Company is reduced by matching the duration of investments and borrowings.
Credit risk	Your Companys Principals ability to pay can have an impact on the financial result..	As per your Companys policy only well- stablished institutions/corporate are approved as counter parties. Exposure per counter party is continuously monitored.
Liquidity risk	Acceptable liquidity levels are required in order to achieve desired financial results.	In addition to its own liquidity, your Company enjoys credit facilities with the largest Bank of the country as well as other banks/financialinstitutions of high-standing and good repute.
Competitor risk	Competitors find ways to operate with better functioning/latest technologies.	Your Company aims to be the cost and value leader, meaning striving to innovate andbring new and increased value through the innovation to our customers while at the same time working to assure that your Companys operations are world class in terms of popularity.
Economic downturn	Your Companys customers could be impacted by a major economic down turn resulting in lower demand for the irrespective marketing.	Your Company has a highly diversified and well customer base. The risk is therefore spread very widely on customer, regional and industrial sector/segment perspective.Your Companys flexible business model is capable to set operational priorities in the face of changing economic scenario.Your Company uses market data intelligence to follow and anticipate developments allowing proactive management of changing market conditions.
Execution risk	It depends on various factors e.g. labour availability, raw material prices, receipt of approvals and regulatory clearances, access toutilities, weather conditions, and absence of contingencies such as litigation.	Your Company manages the adversities with cautious approach, meticulous planning and by engaging established and repute printers, dedicated employees and well established compliance Framework.
Input cost fluctuations and Maintenance cost can impact the and well equipped with technical support which assures	Significant profitability.	Your Company has established a proficientsupply changesinrawmaterialcosts to play in a highly competitive manner. Raw material cost indexes could also be included in contractor/supplier agreements.
Employee / Labour disputes	Industrial disputes lead to industrial action with impacts your Companys ability to meet Principal/client demands.	Your Company maintains an open and positive relationship with all the employees, sub-contractors, workers,etc.; as exemplified by not a single instance of any such dispute so far.
Climate change risks extreme weather events	Extreme weather events disrupt assignment execution.	Requirements for emergency response plans at all sites include Flood risks etc. See also mitigations mentioned here in above.
Corrupt or fraudulent actions carried out by your Companys representatives	Your Companys employee or employees fail to adhere to your Companys Code of Conduct and related policies and requirementsand act in a fraudulent or corrupt manner leading to financial penalties and reputation damage	Your Company takes a proactive approach to assure awareness of demanded ethical standards by education,compliance programmes including anti- corruption, anti fraud and antitrust.The work to follow up adherence is facilitated by the whistle blower function and a risk-and incident based audit system.
Non-compliance with applicable laws	The diverse nature of your Companys business and operations means that your Company is required to adhere to numerous laws and regulations related to all aspects of its activities. Failure to meet these requirements could lead to legal and financial consequences as well as damage to your Companys reputation.	Your Company has put in place comprehensive and robust compliance programme which is based on your Companys Code of Conduct. The compliance programme is put in place to ensure that applicable laws and regulations are identified,understood and adhered to.
Legal risks relating to our business activities	In connection with the revenue of your Company and in the purchase of materials and services from our suppliers,consultants, etc. large potential liabilities may occur in case of e.g. late delivery,delivery of defective products, unfulfilled service commitments and incorrect advice. Therefore, it is important that all such risks are identified, that risk decisions are taken on the appropriate level and that carefully worded contractual provisions aiming at reducing your Companys liabilities are included in contracts	Your Company has put in place policies, procedures and training programs in order to make sure that legal risk relating to our business activities are identified and that risk decisions are taken on the appropriate level. In addition, independent professional legal counsels support your Company indentifying and handling legal risks. The legal counsels work closely with the Senior management and provide contract drafting and negotiation support,claim and litigation management, support, training and general advice.

RISK MANAGEMENT AND RISK MANAGEMENT POLICY:

Your Company believes that Risk management is a holistic, integrated, structured and disciplined approach to managing risks with the objective of maximizing shareholders value. It aligns strategy, processes, people & culture, technology and governance with the purpose of evaluating and managing the uncertainties faced by the organization while creating value.With this vision to integrate risk management with the overall strategic and operational practices, an Enterprise Risk Management

Your Company believes that Risk management is a holistic, integrated, structured and disciplined approach to managing risks with the objective of maximizing shareholders value. It aligns strategy, processes, people & culture, technology and governance with the purpose of evaluating and managing the uncertainties faced by the organization while creating value.With this vision to integrate risk management with the overall strategic and operational practices, an Enterprise Risk Management

CORPORATE GOVERNANCE:

Your Companys Corporate Governance philosophy is based on conscience, openness, fairness, professionalism and accountability. These qualities are ingrained in its value system and are reflected in its policies, procedures and systems. Your Company not only believes in adopting the best corporate system but also in proactive inclusion of public interest in its corporate priorities. The Company has its mission, vision, goals and core values. The Company is being governed in accordance with the policies, code of conducts, charters and various committees are formed in accordance with the law to ensure governance. The Companies Act, 2013 and SEBI Listing Regulations have strengthened the governance regime in the country. Your Company is in compliance with the governance requirements provided under the law and listing regulations. The Company has adopted the policies in line with new governance requirements including the Policy on Related Party Transactions, Policy on Material Subsidiariesand Whistle Blower Policy. These policies are available on the website of the Company at www.sambhaav.com. The Company has established a vigil mechanism for Directors and employees to report their genuine concerns, details of which have been given in the Corporate Governance

Report annexed to this Report.

Pursuant to Section 134(3) (a) and Section 92(3) of the Companies Act, 2013 read with rule 12(1) of the Companies (Management and Administration) Rules, 2014, a copy of the Annual Return is placed on the website of the Company and can be accessed at www.sambhaav.com. A separate report on Corporate Governance is provided together with a Certificate from the Statutory Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Listing Regulations. A Certificate of the CEO and CFO of the Company in terms of Listing Regulations, inter alia, confirming the correctness of the financial statements and cash flow statements, adequacy of the internal control measures and reporting of matters to the Audit Committee, is also annexed.

WORK CULTURE AND HUMAN RESOURCES:

SAMBHAAV believes that its people are the biggest driver of success and the Company has a strong focus on attracting, developing and retaining talent. The people strategy of the Company is founded on three pillars improving the employer brand, creating an organizational context that inspires employees to do their best and being futureready through capability building and talent pipelining. All current and future interventions are focused on driving one or more of these outcomes. The management believes in team work and a corporate environment which is self-motivating. Your Company has successfully developed a work force of people over a period of time. The top management is acting as the governing force in creating and maintaining the corporate work culture. Our Vision is to raise our own benchmarks with every successive endeavour and it is possible only by making every employee a fully engaged and aligned team member.

Apart from permanent employees and workforce, the Company has made marketing and other business arrangements with outside agencies to bring talent and maximize resource utilization.

There were 46 employees in the Company as on 31 March, 2026.

INTERNAL CONTROL SYSTEM:

Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested and certified as Internal Auditors and cover key businessareas.Significantaudit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Companys internal control processes and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems. The Accounting Policies are reviewed and updated from time to time. Your Company has put in place comprehensive systems and procedural guidelines concerning other areas of business, too, like budgeting, execution, content management, quality, safety, procurement, asset management, human resources etc., which are adequate and necessary considering the size and level of operations of the Company.

to review and upgrade existing systems and Themanagementhasbeenmakingconstant efforts processes to gear up and meet the changing needs of the business.

FINANCIAL PERFORMANCE:

The overall financial performance of your Company on various parameters is as under.

Total Income:

Total Income has increased by 1.76 % from _ 3,934.60 Lakh for FY-2024-25 to _ 4,004.03 Lakh for FY-2025-26, it is noted that income in year 2026 has shown a marginal increased compared to the previous year.

Revenue from Operations:

Operating revenue has increased by 3.26% from _ 3,745.25 Lakh in FY 2024-25 to _ 3,867.30 Lakh in FY 2025-26, primarily due to market recovery. Further, improving economic conditions, favourable market trends, changes in consumer behaviour, and other external factors have also contributed significantly to the increase in income.

Expenditure other than Finance and Depreciation & Amortization:

Total operational expenditure, excluding Finance Cost and Depreciation & Amortization, has increased slightly from _ 3,250.11 Lakh in FY 2024-25 to _ 3,389.90 Lakh in FY 2025-26. The increase in operational expenses as compared to the previous year is mainly attributable to higher broadcasting expenses during the year.

Profitability:

At the EBITDA level, it has decreased by 3.58% from _ 495.14 Lakh in FY 2024-25 to _ 477.40 Lakh in FY 2025-26, mainly due to lower operational profitability during the year. The decline is primarily attributable to increased operational expenses despite marginal growth in revenue from operations as compared to the previous year.

Net Worth:

The total net worth of the Company as at March 31, 2025 was _ 8,363.57 Lakh, which has increased to _ 8,373.29 Lakh as at March 31, 2026, on account of profit of_ 9.72 Lakh earned by the Company during the financial year.

Share Capital, Reserves & Surplus:

The Paid-up Equity Share Capital of the Company as at March 31, 2026 stood at _ 1,911.11 Lakh and there was no change in the paid-up share capital during the year under review. Further, the Reserves & Surplus of the Company increased from _ 6,452.46 Lakh as at March 31, 2025 to _ 6,462.18 Lakh as at March 31, 2026. The increase in Reserves & Surplus is attributable to the profit earned by the ar, which has been transferred to retained earnings. ye Companyduringthefinancial

Debt:

The total debt of the Company decreased by _ 561.24 Lakh and stood at _ 59.49 Lakh as at March 31, 2026 as compared to _ 620.73 Lakh as at March 31, 2025. The reduction in debt is primarily attributable to lower utilization of working capital facilities during the year under review. Although the Company expanded its operations and entered new markets, requiring additional working capital support, timely recovery of receivables from customers had a positive impact on the Companys working capital position and overall cash flow management.

Current Liabilities and Provisions: -

Current Liabilities and Provisions of the Company, comprising primarily Trade Payables, Secured Loans, Statutory Dues, Advances received from Customers, short-term provisions for Employee Benefits, other payables and tax liabilities, increased by_ 142.45 Lakh and stood at _ 384.93 Lakh as at March 31, 2026 as against _ 242.48 Lakh as at March 31, 2025. The increase in Current Liabilities and Provisions is mainly attributable to the increase in business operations and consequential rise in operational and statutory obligations during the financial year under review.

Fixed Assets:

The Fixed Assets of the Company decreased by _ 357.72 Lakh and stood at _ 4,125.89 Lakh as at March 31, 2026 as compared to _ 4,483.61 Lakh as at March 31, 2025. The decrease is primarily attributable to depreciation and amortization charged during the financial year under review. As the fixed assets are utilized in the course of the Companys business operations, their carrying value is systematically reduced in accordance with the applicable accounting standards through depreciation and amortization expenses.

Non-current Investments:

Non-current Investments of the Company decreased by _ 4.74 Lakh and stood at _ 2,092.16 Lakh as at March 31, 2026 as compared to _ 2,096.90 Lakh as at March 31, 2025. The marginal decrease in Non-current Investments is attributable to reduction in investments made by the Company in other entitiesduringthefinancial

Long term loans and advances:

Long-term Loans and Advances of the Company decreased from _ 330.00 Lakh as at March 31, 2025 to _ 235.00 Lakh as at March 31, 2026. The reduction is primarily attributable to adjustments and recoveries arising in the normal course of business operations during the financial year under review.

Current Assets:

Current Assets of the Company, mainly comprising Current Investments, Inventories, Trade Receivables, Cash and Bank Balances, Short-term Loans and Advances, and Other Current Assets, increased by _ 145.27 Lakh duringthefinancialyear under review. Accordingly, the same stood at _ 2,984.26 Lakh as at March 31, 2026 as against _ 2,838.99 Lakh as at March 31, 2025. The increase in Current Assets is primarily attributable to the rise in Other Current Assets.

Inventories:

Consumption of Raw Materials and Components valued at cost by the Company decreased by _ 6.42 Lakh during the financial year under review, from _ 23.70 Lakh as at March 31, 2025 to _ 17.28 Lakh as at March 31, 2026. The decrease is mainly attributable to lower consumption requirements in line with the operational activities of the Company during the year.

Trade Receivables:

Trade Receivables of the Company stood at _ 1,349.03 Lakh as at March 31, 2026 as against _ 1,305.08 Lakh as at March 31, 2025. The increase in Trade Receivables is primarily attributable to higher receivables pertaining to government business segments during the financial year under review. The Company continues to maintain an efficient recovery mechanism through improved collection processes and stringent credit control policies for timely realization of outstanding dues.

Cash and Bank Balances:

Cash and Bank Balances of the Company increased significantly and stood at_ 538.30 Lakh as at March 31, 2026 as compared to _ 21.22 Lakh as at March 31, 2025. The increase is primarily attributable to improved cash flow management, timely realization of receivables and lower utilization of working capital facilities during the financial year under review.

Short Term Loans and Advances:

There was decrease of _ 409.34 Lakh in current portion of Inter corporate loan, other advances and Advance tax i.e. from _ 1,488.99 Lakh at March 31, 2025 to _ 1,079.65 Lakh at March 31, 2026.

Key Financial Ratios:

The detailed discussion on financial performance is given in the Directors report and hereinabove in this MDA report, while analysis of key ratios, in terms of the requirements of SEBI LODR Regulations, is furnished hereinbelow.

Ratio	FY 2026	FY 2025	Changes & Explanation
Days Sales Outstanding (in Days)	127	127	Days Sales Outstanding represents the average number of days within which payments are received from clients. The ratio remained almost unchanged during FY 2026 as compared to FY 2025.
Debtors Turnover (in times)	2.91	2.59	Debtors Turnover Ratio improved during the year due to better recovery from customers. timely collection efficiency and
Inventory Turnover (in times)	15.41	26.52	Declined due to the reduction in turnover of Sale of Products.
Interest Coverage Ratio (in Times)	2.33	3.02	Interest Coverage Ratio decreased during the year mainly due to lower earnings available for servicing finance costs as compared to the previous year.
Current Ratio (in Times)	6.21	3.38	Current Ratio improved on account of reduction in current liabilities, mainly trade payables, during the year.
Debt Equity Ratio (in Times)	0.06	0.07	Debt reduced during the year resulting in improvement in the Debt Equity Ratio.
Operating Profit Margin (%)	15.88	18.28	Operating Profit Margin marginally declined during the year due to increase in operational and administrative expenses.
Net Profit Margin (%)	1.15	2.93	Net profit ratio has declined due to lower profit reported during the year.
Return on Net Worth (%)	0.53	1.32	Return on Net Worth declined as compared to the previous financial year due to lower profitability during FY 2026.

Forward Looking Statement

This Annual Report contains forward-looking statements, which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘intends, ‘projects, ‘estimates, or other words of similar import. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditure, and financial results, forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements, on the basis of any subsequent developments, information or events.