Sar Televenture Ltd Management Discussions

Industry Overview

Indias telecom sector continues to be one of the key enablers of the countrys digital economy. The sector has evolved from a voice-led business to a data-centric infrastructure ecosystem, supported by rising broadband penetration, rapid 5G deployment, increasing enterprise digitization, cloud adoption, data centre growth, and expanding digital services across urban and rural markets.

• Optical Fibre Infrastructure: The demand for optical fibre infrastructure has increased significantly due to the growing need for high-capacity, low-latency and reliable connectivity. Fibre is now a critical backbone for mobile networks, broadband services, enterprise connectivity, data centres, government digital infrastructure, smart cities, content delivery networks and emerging technologies such as artificial intelligence, Internet of Things (IoT), edge computing and 5G/6G- ready networks.

• Broadband and FTTH Growth: Growing internet penetration, increasing digital consumption, work-from-home trends, online education, OTT platforms, gaming and smart home applications continue to drive demand for high-speed broadband connectivity. The increasing adoption of Fibre- to-the-Home (FTTH) services is expected to support further expansion of fibre infrastructure across urban and rural markets.

• Enterprise and Data Centre Connectivity: Rapid enterprise digitisation, cloud adoption, cybersecurity requirements, artificial intelligence workloads and expansion of data centres are increasing the demand for secure, scalable and high-bandwidth fibre connectivity. Businesses increasingly require resilient network infrastructure to support mission-critical operations and digital transformation initiatives.

• Telecom Infrastructure and 5G Expansion: As telecom operators continue deploying and optimising 5G networks, demand for fibre-based backhaul infrastructure, small-cell connectivity and network densification is expected to increase significantly. Higher fibre penetration remains essential to improve network capacity, coverage, service quality and overall customer experience.

• Tnfrastructure Sharing and Fibre Leasing: Telecom operators, internet service providers, enterprises and government agencies are increasingly adopting asset-light models by leasing fibre infrastructure instead of investing in network ownership and maintenance. This trend is creating long-term opportunities for fibre infrastructure providers through recurring revenue and improved asset utilisation.

Government Initiatives

The Government of India has undertaken several policy and infrastructure initiatives to strengthen telecom and broadband connectivity across the country. These measures are expected to create a favourable environment for telecom infrastructure development, broadband expansion and optical fibre deployment.

Production-Linked Incentive (PLI) Scheme for Telecom & Networking Products

The Government continues to promote domestic manufacturing of telecom and networking equipment through the Production-Linked Incentive (PLI) Scheme. The initiative aims to strengthen the telecom ecosystem, encourage investment, enhance technological capabilities and reduce dependence on imports.

National Broadband Mission 2.0

The Government launched National Broadband Mission 2.0 with the objective of accelerating broadband infrastructure development, improving digital inclusion and expanding meaningful connectivity across the country. The mission seeks to address connectivity gaps, particularly in rural and underserved regions, while supporting the growth of future-ready digital infrastructure.

BharatNet and Amended BharatNet Programme

BharatNet is one of the worlds largest rural broadband projects and aims to provide broadband connectivity to Gram Panchayats across India. The Amended BharatNet Programme focuses on enhanced network architecture, ring topology, IP-MPLS design and wider optical fibre coverage, thereby creating significant opportunities for telecom infrastructure development, fibre deployment and network expansion.

Gati Shakti Sanchar Portal and Right of Way Reforms

The Gati Shakti Sanchar Portal has been introduced to streamline Right of Way (RoW) approvals for optical fibre deployment and telecom infrastructure installation. Further, the Telecommunications Act, 2023 and the Telecommunications Right of Way Rules, 2024 have established a more uniform and transparent framework for telecom infrastructure development. These reforms are expected to reduce project delays, improve transparency and facilitate faster network rollout.

Digital India and Rural Connectivity Initiatives

The Governments Digital India programme, public digital infrastructure initiatives, e-governance platforms, smart city projects and rural broadband programmes continue to drive demand for telecom and fibre infrastructure. These initiatives are expected to support long-term growth in digital connectivity and broadband penetration across urban and rural India.

PM-WANI Scheme

The PM-WANI (Prime Minister Wi-Fi Access Network Interface) initiative aims to expand affordable public Wi-Fi access across the country through a decentralised ecosystem of Public Data Offices (PDOs). The scheme is expected to improve internet accessibility, particularly in rural and semi-urban areas, while supporting the broader digital inclusion agenda.

Active Infrastructure Sharing Reforms

The Government continues to encourage infrastructure sharing among telecom operators and infrastructure providers to improve capital efficiency, accelerate network deployment and reduce duplication of resources. The growing adoption of shared telecom infrastructure is expected to support efficient utilisation of fibre and network assets.

Support for 5G, 6G and Advanced Telecom Ecosystem

Government initiatives relating to 5G deployment, indigenous telecom technologies, 6G research, digital infrastructure development and innovation ecosystems are expected to further strengthen demand for high-capacity fibre networks. Budget and policy announcements continue to emphasise BharatNet, Digital Bharat Nidhi, 5G laboratories and 6G research as key components of Indias digital infrastructure roadmap.

Opportunities and Outlook

The outlook for the telecom infrastructure and fibre leasing industry remains encouraging. Rising data consumption, increasing broadband penetration, rapid digitalisation, cloud adoption, data centre growth and continued investments in network infrastructure are expected to drive sustained demand for optical fibre connectivity.

Key growth opportunities include:

5G Backhaul and Network Densification

5G networks require denser tower infrastructure, small cells and high-capacity backhaul connectivity. As telecom operators continue to strengthen and optimise their networks, demand for fibre-based connectivity solutions is expected to increase significantly.

Enterprise and Data Centre Connectivity

The increasing adoption of cloud computing, artificial intelligence, digital payments, e-commerce, video streaming and enterprise digital transformation is driving demand for secure, reliable and high- bandwidth fibre connectivity. The continued expansion of data centres and enterprise campuses presents significant opportunities for telecom infrastructure providers.

Rural Broadband and BharatNet-linked Opportunities

Government initiatives such as BharatNet and National Broadband Mission 2.0 are expected to accelerate broadband penetration in underserved and rural areas. These programmes create opportunities for fibre deployment, network expansion, operations and maintenance services and long-term leasing arrangements.

Fibre-to-the-Home (FTTH) and Fixed Broadband Growth

Growing demand for home broadband services, OTT platforms, online education, remote working, gaming and smart-home applications continues to support the expansion of fibre-based broadband networks across urban and semi-urban markets.

Infrastructure Sharing and Fibre Leasing Models

Telecom operators, internet service providers and enterprises are increasingly adopting asset-light business models by leasing infrastructure instead of investing in network ownership. This trend is expected to support recurring revenue opportunities for fibre infrastructure companies through improved asset utilisation and long-term customer relationships.

Government-led Digital Infrastructure Development

Digital India initiatives, Smart Cities projects, public digital infrastructure programmes and increasing investments in next-generation telecom technologies are expected to create long-term opportunities for optical fibre deployment and digital connectivity solutions.

Industry participants and policymakers continue to emphasise network densification, fibreisation and future-ready digital infrastructure to support Indias growing digital economy, providing a favourable long-term outlook for the telecom infrastructure sector.

Company Strategy for Capitalisation of Growth Opportunities

The Company is well positioned to benefit from the rapid expansion of Indias telecom and digital infrastructure ecosystem. Increasing broadband penetration, rising data consumption, accelerated 5G deployment, growing fibreisation requirements, expansion of data centres, enterprise digitisation and various Government-led connectivity initiatives continue to create significant opportunities across the telecom sector. The Company intends to leverage these opportunities through a balanced strategy focused on infrastructure development, customer acquisition, operational excellence and sustainable growth.

The Companys growth strategy is built around the following key pillars:

1. Expansion of Telecom and Fibre Infrastructure

The Company intends to strengthen its presence across telecom infrastructure and fibre networks by focusing on commercially attractive routes, urban centres, industrial corridors, enterprise clusters, emerging growth markets and high-demand connectivity zones. The objective is to create scalable infrastructure assets capable of delivering long-term value and sustainable revenue streams.

2. Leveraging Growth in Broadband Connectivity

India continues to witness strong growth in broadband adoption driven by digital transformation, remote working, online education, OTT platforms, gaming and increasing digital consumption. The Company intends to capitalise on the growing requirement for high-speed connectivity infrastructure by supporting telecom and broadband ecosystem expansion.

3. Capitalising on 5G and Network Densification Opportunities

The ongoing deployment of 5G networks is expected to significantly increase demand for fibreisation, high-capacity backhaul networks, small-cell connectivity and network densification. The Company intends to actively participate in opportunities arising from the continued evolution of telecom networks and the increasing need for robust digital infrastructure.

4. Enterprise and Data Centre Connectivity

The rapid growth of cloud computing, artificial intelligence, cybersecurity solutions, digital payments, e-commerce and enterprise digital transformation is increasing demand for reliable and scalable connectivity infrastructure. The Company intends to explore opportunities in enterprise connectivity, data centre connectivity and high-capacity digital infrastructure solutions to support emerging business requirements.

5. Participation in Government-led Digital Infrastructure Programmes

Government initiatives such as BharatNet, National Broadband Mission 2.0, Digital India, Smart Cities programmes, Digital Bharat Nidhi initiatives and rural connectivity projects are expected to create substantial opportunities for infrastructure deployment and network expansion. The Company intends to actively evaluate participation in such programmes wherever commercially viable.

6. Strategic Partnerships and Collaborative Growth

The Company seeks to establish and strengthen relationships with telecom operators, internet service providers, infrastructure providers, system integrators, technology partners, enterprises and government agencies. Strategic partnerships are expected to facilitate efficient execution, improve market access and support sustainable business expansion.

7. Infrastructure Sharing and Asset Monetisation

With telecom operators increasingly focusing on asset-light business models, infrastructure sharing and leasing arrangements are emerging as important growth drivers. The Company intends to maximise utilisation of infrastructure assets through long-term commercial arrangements, thereby improving operational efficiency and enhancing revenue visibility.

8. Focus on Operational Excellence and Service Reliability

The Company remains committed to maintaining high standards of operational efficiency, network availability and customer service. Continuous monitoring, preventive maintenance, quality assurance and timely service delivery will remain key priorities to strengthen customer relationships and improve operational performance.

9. Technology-led Growth and Innovation

As emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Edge Computing, Cloud Services and future 6G networks gain traction, demand for advanced telecom infrastructure is expected to increase. The Company intends to closely monitor technological developments and explore new opportunities arising from the evolving digital ecosystem.

10. Capital Efficiency and Financial Discipline

The Company will continue to deploy capital prudently by prioritising commercially attractive opportunities, optimising resource utilisation and maintaining financial discipline. The focus will remain on generating sustainable returns while supporting future growth initiatives.

11. Geographic Expansion and Market Diversification

The Company intends to expand its reach across urban, semi-urban and high-growth telecom markets while diversifying its customer base. A wider geographic footprint and diversified customer profile are expected to improve business resilience and create additional revenue opportunities.

12. Risk-managed and Sustainable Growth

The Company recognises potential risks relating to regulatory changes, Right of Way approvals, project execution delays, competitive market conditions, evolving technologies and customer concentration. The management remains committed to pursuing growth through prudent risk management practices, customer diversification, operational controls and strong corporate governance standards.

Conclusion

Indias telecom and digital infrastructure sector is expected to remain a key beneficiary of the countrys digital transformation journey. The continued growth of broadband services, 5G deployment, cloud adoption, artificial intelligence applications, enterprise digitisation, data centres, smart cities and rural connectivity initiatives is expected to generate sustained demand for telecom infrastructure and digital connectivity solutions. Government initiatives such as BharatNet, National Broadband Mission 2.0, Digital India, Gati Shakti Sanchar Portal and Right of Way reforms further strengthen the long-term industry outlook.

The Company believes that its focus on telecom infrastructure development, strategic partnerships, operational excellence, customer-centric solutions, technological adaptability and prudent financial management will enable it to capitalise on emerging opportunities in the sector. While the industry remains competitive and execution-intensive, the structural growth in digital connectivity requirements provides a strong foundation for sustainable growth and long-term value creation

Financial and Operational Performance

A. Overview

The highlights of standalone and consolidated financial results of the Company for the financial year ended March 31, 2026, and March 31, 2025, are as under:

(Rs in Lakhs)

Particulars	Year Ended 31.03.2026	Year Ended 31.03.2025	Year Ended 31.03.2026	Year Ended 31.03.2025
	(Standalone)		(Consolidated)
Net Sales / Income from operations	11,616.77	3,563.43	52,211.30	34,993.01
Other Income	418.67	235.21	691.99	626.31
Total Income	12,035.44	3,798.64	52,903.29	35,619.32
Total Expenditure*	9,560.47	2,751.88	42,928.53	29,453.77
Profit before Finance Costs, Depreciation, Tax	2,474.97	1,046.76	9,974.76	6,165.55
Finance costs	2.79	3.13	32.84	13.78
Depreciation	877.70	238.48	1,836.89	990.62
Profit before taxation	1,594.48	805.15	8,105.03	5,161.14
Less: Tax Expenses	418.04	224.63	856.36	471.05
Net Profit	1,176.44	580.52	7,248.67	4,690.09
EPS BASIC	2.47	1.71	15.20	13.85
EPS Diluted	2.40	1.62	14.78	13.05

*Excluding Depreciation & Amortization and Finance Cost.

The Company delivered a strong financial performance during FY 2025-26. On a standalone basis, revenue from operations recorded significant growth of over 226% compared to the previous year, reflecting improved business momentum and enhanced market performance. Profit after tax also increased by more than 103%, driven by higher operational efficiency, improved cost management, and stronger overall business execution.

On a consolidated basis, revenue from operations increased by around 49% compared to the previous year, while profit after tax also increased by more than 55%, demonstrating the strength of the Companys subsidiaries and overall business strategy. The improvement in profitability despite higher depreciation charges reflects robust operating performance across the group.

B. Review of Operations

During the financial year under review, your Company has continued to strengthen its presence in the telecom infrastructure and allied services sector. With the increasing demand for digital connectivity across the country, SAR Televenture Limited has strategically focused on expanding its operational footprint, enhancing service delivery capabilities, and consolidating its position in the industry.

On a Standalone basis, the Company recorded revenue from operations of Rs 11,616.77 Lakhs as against Rs 3,563.43 Lakhs in the previous year, reflecting significant growth owing to increased project execution, better utilization of resources, and scaling of operations.

On a Consolidated basis, the Company along with its subsidiaries achieved revenue from operations of Rs 52,211.30 Lakhs as compared to Rs 34,993.01 Lakhs in the previous year. This growth is primarily driven by (i) execution of infrastructure development contracts, (ii) expansion in fibrelaying and related services, and (iii) improved contribution from subsidiary companies.

The Company remains committed to pursuing sustainable growth, exploring new business opportunities in the telecom and digital infrastructure sector, and creating long-term value for its stakeholders. With strong industry fundamentals, supportive government policies (including Digital India and 5G rollouts), and a robust project pipeline, the Company is well-positioned to achieve further growth in the coming years.

C. Key Financial Ratios

The following are analytical ratios for the year ended March 31, 2026 and March 31, 2025

Particulars	Standalone
	31.03.2026	31.03.2025	% Variance	Reason for variance
Current Ratio	3.43	2.43	41%	The current ratio increased due to an increase in trade receivables driven by higher sales during the year.
Debt-Equity ratio	-	-	0%	Due to no debt
Return on Equity ratio	0.01	0.01	0%	No change
Inventory turnover ratio	49.50	46.34	7%	The Inventory Turnover Ratio due to higher sales and faster movement of inventory during the year
Trade Receivables turnover ratio	2.36	2.33	2%	With the increase in sales with lower credit term. The ratio is improved.
Trade Payables turnover ratio	3.00	2.08	44%	The Trade payable turnover ratio has increased mainly due to increase in other expenses and these were partially offset by the increase in the average trade payables.
Net Capital turnover ratio	0.14	0.04	250%	The Net capital turnover ratio has increased due to increase in the revenue from operations and these were partially offset by the increase in the capital employed on account of fresh issues of equity shares through share warrant.
Net Profit ratio (in %)	0.10	0.16	-38%	The Net profit ratio has decreased due to increase in cost of sales during the year.
Return on Capital Employed	1.96	1.02	92%	The Return on capital employed ratio has increased due to increase in EBIT as compared to previous year and these were partially offset by the increase in the capital employed on account of fresh issues of equity shares through share warrant.

Opportunities and Threats Opportunities

5G Network Expansion and Densification

The continued rollout and expansion of 5G services across the country is expected to drive significant demand for telecom infrastructure, fibre connectivity, network densification and backhaul solutions. As telecom operators enhance network coverage and capacity, substantial opportunities are expected to emerge for infrastructure providers supporting next-generation connectivity networks.

Broadband and FTTH Growth

Rising internet penetration, increasing digital consumption, remote working, online education, video streaming and smart home applications continue to support growth in broadband services. The growing demand for high-speed connectivity across urban and rural markets is expected to create long-term opportunities across the broadband and fibre ecosystem.

Enterprise Digital Transformation

Businesses across sectors are increasingly adopting cloud computing, cybersecurity solutions, digital collaboration platforms, data analytics and advanced connectivity solutions. This transformation is creating significant opportunities for enterprise connectivity, managed network services, data centre connectivity and digital infrastructure solutions.

Data Centre and Cloud Infrastructure Growth

India continues to witness strong investments in data centres, cloud infrastructure and digital services. Growing demand for secure, low-latency and high-capacity connectivity is expected to support expansion opportunities in fibre connectivity and digital infrastructure services.

Government-led Digital Infrastructure Programmes

Initiatives such as BharatNet, National Broadband Mission 2.0, Digital India, Smart Cities Mission, PM-WANI and rural connectivity programmes continue to create opportunities for telecom infrastructure deployment, fibre network expansion and connectivity solutions across the country.

Infrastructure Sharing and Asset Monetisation

The telecom industrys increasing focus on capital efficiency is encouraging infrastructure sharing models. Shared infrastructure, fibre leasing and strategic collaborations provide opportunities for higher asset utilisation, recurring revenues and improved return on investments.

Strategic Expansion and Consolidation Opportunities

The evolving telecom infrastructure landscape offers opportunities for business expansion through strategic partnerships, acquisitions, market expansion initiatives and complementary digital infrastructure investments that can strengthen the Companys long-term competitive position.

Threats

Regulatory and Policy Risks

The telecom sector operates within a highly regulated environment. Changes in telecom regulations, licensing conditions, Right of Way policies, spectrum-related regulations, environmental norms and compliance requirements may impact project execution timelines, operating costs and profitability.

Project Execution and Operational Risks

Telecom infrastructure projects are exposed to risks arising from delays in approvals, site acquisition challenges, Right of Way permissions, supply chain disruptions and unforeseen execution hurdles. Such factors may impact project timelines and operational performance.

Market Competition

The telecom infrastructure and connectivity sector remains highly competitive with participation from established telecom operators, infrastructure providers, internet service providers and emerging technology companies. Increased competition may exert pressure on pricing, margins and customer acquisition costs.

Customer Concentration Risk

The telecom infrastructure industry may at times be dependent on a limited number of large telecom operators and enterprise customers. Consolidation among customers, changes in business strategies or financial challenges faced by key customers may affect revenues and asset utilisation levels.

Technology Evolution Risks

Rapid technological advancements and evolving communication technologies require continuous investments in infrastructure, network upgrades and operational capabilities. Failure to adapt to changing technology requirements could impact competitiveness and growth prospects.

Economic and Financial Risks

Inflation, rising interest rates, fluctuations in commodity prices, funding constraints, foreign exchange movements and broader macroeconomic uncertainties may impact project costs, profitability and investment decisions within the telecom sector.

Risks & Concerns

1. Regulatory & Compliance Risks

• Frequent changes in telecom regulations, licensing frameworks and compliance requirements may affect business operations.

• Delays in obtaining statutory approvals, Right of Way permissions and local authority clearances may impact project execution schedules.

• Changes in government policies relating to telecom infrastructure development may affect future growth opportunities.

2. Customer and Business Concentration Risks

• Dependence on a limited number of telecom operators, infrastructure customers or enterprise clients may expose the Company to concentration risks.

• Industry consolidation among telecom operators may affect infrastructure demand and customer relationships.

3. Competitive Risks

• Intense competition from telecom operators, infrastructure providers, broadband service providers and emerging technology companies may impact market share and profitability.

• Aggressive pricing strategies adopted by competitors may affect margins and revenue growth.

4. Technology and Cybersecurity Risks

• Rapid technology changes require continuous infrastructure upgrades and investments.

• Increasing dependence on digital systems exposes businesses to cybersecurity and data protection risks.

5. Financial Risks

• Changes in interest rates, inflationary pressures and availability of capital may impact future investments and profitability.

• Delays in customer payments may affect working capital requirements and cash flows.

Internal Control Systems and their Adequacy

Your Companys Internal Control Systems are commensurate with the nature, size and complexity of its business and ensure proper safeguarding of assets, maintaining proper accounting records and providing reliable financial information.

The Directors have laid down internal financial controls to be followed by the Company and such policies and procedures have been adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Human Resources and Industrial Relations

The industrial relations remained cordial throughout the year and we believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our company looks for specific skill-sets, interests and background that would be an asset for our business. Our business model comprises of senior level executives, professionals, experienced, qualified and semi qualified personnel. The Company continued to make significant progress on strengthening HR Processes and Practices to build organization for current as well as future sustainability during the year.

Our Company work processes and skilled/ semi-skilled/ unskilled resources together with our strong management team have enabled us to successfully implement our growth plans.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important fsactors that could make a difference to your Companys operations include raw material availability and prices, pricing in the Companys principal markets, competitive actions, changes in Government regulations, tax regimes, economic developments in India and in countries in which the Company conducts business and other incidental factors.