Sattrix Information Security Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31st March 2026.

BUSINESS OVERVIEW

Sattrix Information Security Limited is a cybersecurity solutions and services provider engaged in delivering end-to-end information security, consulting, implementation, integration, managed security, and support services to enterprises across diverse industry verticals. The Company offers a comprehensive portfolio of cybersecurity solutions, including network security, cloud security, identity and access management, governance, risk and compliance (GRC), vulnerability assessment and penetration testing (VAPT), Security Operations Centre (SOC), managed security services, and data protection solutions.

With operations spanning India, the United States, the United Arab Emirates, and Malaysia, the Company serves customers across various sectors by delivering customized cybersecurity solutions tailored to their business and regulatory requirements. Through its customer-centric approach, strategic technology partnerships, and focus on innovation, Sattrix continues to strengthen its capabilities and support organizations in enhancing cyber resilience, ensuring regulatory compliance, and enabling secure digital transformation.

GLOBAL CYBER SECURITY INDUSTRY

A reliable and widely cited estimate (from Grand View Research) states that the global cybersecurity market is estimated at USD 302.0 billion in 2026 and is projected to reach USD 663.2 billion by 2033, growing at a CAGR of 11.9% during the forecast period.

CYBERSECURITY TRENDS

1. AI Driven Offensive and Defensive Cybersecurity

AI is becoming part of modern cybersecurity, and both attackers and security teams are using it in different ways. Criminal groups use AI tools to scan systems for weak spots, craft convincing phishing emails, and build malware that can evade older security defenses. Because these tools can run automated scans and quickly generate attacks, they allow criminals to target many systems at once

2. Rise of Agentic AI and Shadow AI Risks

AI is taking on a more active role inside organizations, with some systems now able to make decisions or trigger actions without direct human input. While that can improve speed and efficiency, it also increases risk when decisions are made without sufficient oversight or context. At the same time, the rise of shadow AI is creating serious visibility gaps, as employees use unapproved external tools for writing, coding, analysis, or workflow support without going through IT or security review.

3. Zero Trust Security Becoming Standard

Zero Trust is becoming standard because organizations can no longer rely on perimeter-based security alone. Instead of assuming users or devices are trustworthy once they log in, Zero Trust applies verification at every step through stricter access controls, role-based permissions, network segmentation, and continuous monitoring.

4. Identity Risk and Credential Protection

Getting into a system often starts with something simple, such as login details. A lot of cyberattacks still come down to stolen usernames and passwords, which is why identity systems get so much attention now. Its not just employee accounts, either; system-level access needs the same level of care.

5. Cloud Native and Continuous Monitoring

Cloud environments are usually monitored constantly today. Security teams monitor activity logs and system behavior rather than checking them occasionally. When something looks odd, such as unusual network traffic, a changed storage setting, or a login attempt from an unfamiliar location, the system can raise an alert. Sometimes it even reacts automatically. A login from a different country, for example, may require an additional verification step before the user gains access.

6. Data Privacy and Regulatory Pressure

Data privacy is now a core part of cybersecurity, shaped by stricter laws and higher expectations around how organizations handle personal information. Security teams must not only prevent attacks, but also control access, limit unnecessary exposure, and ensure sensitive data is handled responsibly in daily operations. Regulatory pressure has also changed how organizations respond to risk. Incidents now need to be escalated, investigated, and reported faster, while compliance has become an ongoing process of reviewing access, updating permissions, and monitoring for unusual activity. As a result, data privacy is now an operational priority, not just a legal concern

7. Ransomware Evolution and Fragmented Threat Actors

Ransomware attacks do not run the same way they did a few years ago. Many groups now work in smaller teams and run highly focused campaigns. In addition to locking files, attackers may steal data or disrupt services to pressure the victim. Some groups are even experimenting with AI tools to launch more attacks in less time.

Companies are changing how they defend against attacks. They keep backups, watch systems closely, and have a plan ready for incidents. Preparing this way makes it easier to handle ransomware when it happens and reduce the damage.

8. Post-Quantum Cryptography (PQC) Preparations

As quantum computing advances, organizations are preparing for a future in which current encryption may no longer be sufficient. This has increased focus on post-quantum cryptography, with companies testing quantum-resistant algorithms in real systems and reviewing infrastructure that may need updates. Early preparation is especially important for sensitive data that must remain secure for years, since information stolen today could be decrypted later.

9. Skills Shortages and Security Talent Gaps

The shortage of skilled cybersecurity workers remains a major problem. Many companies struggle to find people who know cloud security, threat detection, or incident response. That can leave gaps in their teams, slow down reactions, and increase risk. As a result, organizations are trying new approaches. Some run training programs, others work with outside experts, and many rely on managed security services. Closing the talent gap is now a top priority for cybersecurity teams. It helps companies maintain strong security even as threats and systems become more complex.

10. Interconnected Risk - Supply Chain and Third-Party Vulnerabilities

Modern organizations work with many external partners, and if one partner has a weakness, it can affect everyone. Problems with suppliers, vendors, or outsourced services can spread across networks, and old perimeter defenses arent enough on their own.

These days, companies need to keep a close eye on their partners, run regular vulnerability checks, and tighten access controls. Looking at the whole system helps teams manage risk, reduce exposure, and make their setups more resilient to problems from external sources.

(Source: Top Ten Cybersecurity Trends in 2026 Published on April 2026 URL: https://www.simplilearn.com/top-cybersecurity-trends-article)

CYBER SECURITY INUDSTRY IN INDIA

Indias cybersecurity industry continues to witness strong growth, driven by rapid digitalisation, increasing adoption of cloud and digital technologies, the proliferation of connected devices, growing cyber threats and the strengthening of data protection and cybersecurity regulations. The increasing dependence of enterprises, government organisations and critical infrastructure on digital systems has made cybersecurity an important component of business continuity, risk management and digital transformation.

According to Mordor Intelligence, the India cybersecurity market was valued at approximately US$5.56 billion in 2025 and is estimated to reach US$6.56 billion in 2026. The market is projected to reach approximately US$15.06 billion by 2031, representing a CAGR of approximately 18.07% during 2026–2031. The growth is being supported by increasing cyber threats, cloud adoption, digital transformation initiatives and the strengthening of data protection requirements.

Cybersecurity solutions continue to constitute a significant portion of the Indian cybersecurity market, while cybersecurity services are also expected to record strong growth. The increasing adoption of cloud-based infrastructure is creating additional demand for cloud security, identity and access management, endpoint protection, security monitoring, threat detection and response and managed security services.

In addition, Gartner estimates that end-user spending on information security in India is expected to reach US$3.4 billion in 2026, representing an increase of 11.7% over 2025. Gartner identifies increasing identity-related threats, regulatory requirements and the evolving threat landscape as key factors influencing cybersecurity spending by Indian organizations.

The Indian cybersecurity industry is expected to remain an important and rapidly evolving segment of the technology ecosystem, with organizations increasingly moving from traditional security products towards integrated cybersecurity platforms and managed security services.

KEY FACTORS DRIVING THE INDIAN CYBERSECURITY MARKET

• Rapid Digitalisation and Increasing Digital Dependency

Indias continued digital transformation has significantly increased the volume of digital assets, applications, data and connected systems that require protection. Enterprises across BFSI, IT and telecom, healthcare, manufacturing, energy, retail and government are increasingly dependent on digital infrastructure for their day-to-day operations.

As organisations expand their digital footprint, the requirement for continuous monitoring, endpoint protection, identity management, vulnerability management, threat detection and incident response is expected to increase. This creates sustained opportunities for cybersecurity solution providers and managed security service providers.

• Increasing Cybersecurity Incidents

The growing frequency and sophistication of cyber threats remain a significant driver of cybersecurity spending in India. According to CERT-In, it handled more than 29.44 lakh cybersecurity incidents during 2025. During the same period, CERT-In issued 1,530 security alerts, 390 vulnerability notes and 65 advisories, demonstrating the scale and evolving nature of the cybersecurity threat landscape in the country.

The increasing incidence of ransomware, phishing, credential theft, malware, data breaches and other sophisticated attacks is encouraging organizations to strengthen their security posture and invest in preventive, detective and responsive cybersecurity capabilities.

• Growth in Cloud Adoption and Hybrid IT Environments

The adoption of cloud computing and hybrid IT environments continues to expand across Indian enterprises. As organizations migrate applications, workloads and data to cloud environments, the traditional perimeter-based approach to cybersecurity is increasingly being replaced by security architectures covering users, endpoints, applications, workloads and data.

This trend is expected to increase demand for cloud security, identity and access management, endpoint security, security posture management, data protection and continuous monitoring. Mordor Intelligence expects cloud-based cybersecurity to remain one of the faster-growing areas of the Indian cybersecurity market during the forecast period.

• Increasing Regulatory and Data Protection Requirements

The strengthening of Indias regulatory framework relating to data protection and cybersecurity is another important driver of cybersecurity investments. The Digital Personal Data Protection Rules 2025, notified by the Ministry of Electronics and Information Technology, provide a more detailed framework for the processing and protection of digital personal data.

The evolving regulatory environment is encouraging organizations to strengthen data governance, access controls, security safeguards, incident management, monitoring and compliance mechanisms. This is expected to support demand for cybersecurity solutions and services that help enterprises address both security and regulatory requirements.

• Expansion of Digital Payments and Financial Technology

Indias rapidly expanding digital payments ecosystem is increasing the importance of cybersecurity, fraud prevention and identity protection. The continued adoption of UPI and other digital payment mechanisms has increased the volume of transactions and sensitive financial information processed through digital channels.

The scale of Indias digital payments ecosystem has resulted in greater emphasis on authentication, identity and access management, transaction monitoring, fraud detection, endpoint security and real-time threat detection, particularly within the BFSI sector.

• Increasing Adoption of Managed Security Services

The complexity of modern IT environments, increasing cyber threats and shortage of specialized cybersecurity professionals are encouraging organizations to engage specialized cybersecurity service providers.

Managed Security Services, Security Operations Centre (SOC) services, Managed Detection and Response (MDR), vulnerability assessment, penetration testing, incident response and cybersecurity consulting are therefore expected to remain important areas of growth.

For enterprises that may not have the resources or expertise to operate comprehensive security operations internally, outsourcing cybersecurity monitoring and response to specialised providers can provide access to continuous security capabilities and specialised expertise.

• Artificial Intelligence and Evolution of Cyber Threats

Artificial Intelligence is increasingly influencing both cybersecurity threats and defensive capabilities. Cyber attackers are using AI-enabled techniques to enhance phishing, social engineering, automation and other attack activities, while organisations are increasingly deploying AI and automation to improve threat detection, security analytics and incident response.

The emergence of AI-enabled threats is therefore expected to increase the requirement for advanced security monitoring, threat intelligence, identity protection, data security and automated detection and response capabilities.

Gartner has highlighted the increasing importance of identity-first security in India, particularly in the context of identity-related threats and evolving attack techniques.

• Strengthening Cybersecurity Capabilities Across Critical Sectors

Cybersecurity is increasingly becoming a strategic requirement across critical sectors such as financial services, telecommunications, energy, healthcare, government and IT/ITeS. CERT-In has continued to strengthen Indias cyber incident response and threat intelligence capabilities and has also expanded the ecosystem of cybersecurity audit organisations. During 2025, 231 cybersecurity audit organisations were empanelled, further strengthening the countrys cybersecurity assessment and audit capabilities.

The increasing focus on cyber resilience across critical sectors is expected to create sustained demand for security solutions, monitoring services, threat intelligence, vulnerability management, incident response and cybersecurity consulting.

OUTLOOK

The outlook for Indias cybersecurity industry remains positive. Increasing digitalization, cloud adoption, expansion of connected environments, growing cyber threats and evolving regulatory requirements are expected to sustain cybersecurity investments across enterprises and government organizations.

The market is also witnessing a shift from conventional, point-based security solutions towards integrated cybersecurity platforms, continuous monitoring, identity-centric security and managed security services. Organizations are increasingly focusing not only on preventing cyber incidents but also on improving their ability to detect, respond to and recover from security incidents.

For cybersecurity companies such as SATTRIX INFORMATION SECURITY LIMITED, these industry trends present opportunities across areas including managed security services, Security Operations Centre (SOC) services, endpoint and network security, SIEM, threat detection and response, cloud security, vulnerability management, cybersecurity consulting and other information security solutions. With cybersecurity becoming an increasingly important component of enterprise risk management and digital transformation, the Indian cybersecurity industry is expected to maintain its growth trajectory over the medium to long term.

(Source: Mordon Intelligence article titled India Cybersecurity Market Size & Share Analysis - Growth Trends & Forecasts (2026 - 2031) Url: https://www.mordorintelligence.com/industry-reports/india-cybersecurity-market

OUR SERVICES

We offer a comprehensive range of cybersecurity services, tailored to meet the unique requirements of each client. Our services are designed to help organizations identify, assess, and mitigate cyber risks effectively.

1. ASSESSMENT SERVICES

Our assessment services help clients understand their cybersecurity posture and identify potential vulnerabilities. These services are customized based on a detailed risk assessment of the clients environment. Key solutions include:

• Vulnerability Assessment

We provide thorough vulnerability assessments to help clients understand security risks across their digital systems. With new threats emerging continuously, our service equips organizations with the knowledge and awareness needed to manage potential risks effectively.

• Penetration Testing Services

Our expert penetration testing analysts simulate real-world attacks to evaluate the security of your IT infrastructure. We also provide guidance on necessary procedures and investments to build a stronger, more secure data protection environment.

• Red Teaming

Our Red Teaming service simulates realistic cyberattacks to test an organizations ability to withstand threats. Using the same tools and techniques as malicious actors, we assess the readiness of internal security teams and identify areas for improvement.

• Anti-Phishing Solutions

We emulate phishing attacks to evaluate organizational resilience against social engineering threats. By sending controlled phishing emails, we identify which users may fall for such tactics, helping organizations strengthen awareness and implement preventive measures.

• Application Security Services

Our application security services provide dynamic testing and expert consultation to protect applications against vulnerabilities. We help develop, integrate, and test security features within applications, ensuring they remain secure against evolving cyber threats.

2. IT INFRASTRUCTURE MANAGEMENT

Our IT Infrastructure Security Consulting services address the evolving challenges organizations face in safeguarding their technology environments. We help businesses define and implement cybersecurity strategies tailored to their specific infrastructure needs.

By providing end-to-end visibility across modern IT environments, our services enable faster detection, effective response, and proactive threat blocking. We leverage the most suitable technologies for each organization to ensure optimal protection.

Our technology consulting approach moves beyond the traditional box-centric model, adopting a consultative framework that integrates advanced security solutions, including:

• Threat Analytics

• Security Information and Event Management (SIEM)

• User and Entity Behavior Analytics (UEBA)

• Database Activity Monitoring (DAM)

• Privileged Access Management (PAM)

• Single Sign-On (SSO) for Cloud Applications

• Endpoint Detection and Response (EDR)

• Security Operations Center (SOC)

3. Hybrid IT Services & Solutions

We provide on-premise and cloud infrastructure to meet varied demands of business needs to achieve agility, compliance and efficiency. We have bucket of hybrid IT services & solutions to offer to our clients.

4. Managed Security Services (MSS)

We offer Managed Security Services that align with your business needs and cybersecurity goals. Acting as your outsourced cybersecurity team, we provide around-the-clock monitoring through an integrated security ecosystem. Our Security Operations Centre (SOC) operates 24/7 to manage and monitor your cloud, hybrid, or on-premises security solutions. We use a smart mix of tools and technologies to ensure reliable, high-quality protection.

Managed Services includes following solutions:

• Vulnerability Management – Ongoing identification, assessment, and patching of security vulnerabilities.

• SOC (Incident Response) – 24/7 monitoring and rapid response to detect and mitigate any type of cyberattack.

• Endpoint Detection & Response (Managed EDR) – Real-time monitoring of malware and other endpoint-related threats, with prompt risk mitigation.

• Help Desk / Technical Support – Dedicated support to resolve IT-related issues efficiently.

• IT Infrastructure Security – Comprehensive management of security solutions across your entire IT environment.

• Cybersecurity Compliance Services – Continuous compliance tracking, monitoring, and reporting to meet regulatory requirements.

DISUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL RFORMANCE

Particulars	Standalone		Consolidated
	2025-26	2024-25	2025-26	2024-25
Revenue from Operation	5,876.41	4,392.09	6083.44	4,463.17
Other Income	73.55	43.28	94.09	43.58
Total Revenue	5,949.95	4,435.37	6177.53	4,506.75
Other Operative and	4,591.14	3,710.86	4896.04	3,801.9
Administrative Expenses
Depreciation &	142.97	116.80	156.34	116.80
Amortization Expenses
Total Expenses	4,734.11	3,827.66	5052.38	3,918.70
Profit Before	1215.84	607.71	1125.15	588.05
Extraordinary Items
Extraordinary Items	-	-	-	-
Profit Before Tax	1215.84	607.71	1125.15	588.05
Tax Expenses
(a) Current Tax	(314.72)	(155.00)	(266.13)	(155.00)
(b) Deferred Tax	1.79	(11.31)	(31.96)	(11.31)
? Provision for Income	(19.53)	(17.13)	(19.53)	(17.13)
Tax
Profit /(Loss) for the Year	883.39	424.27	807.53	404.61
Basic and diluted earnings per equity share	11.90	6.57	11.10	6.27

In terms of performance, FY 2025-26 has been a reasonable year. Company is focused on the task on hand in terms of better reliability of operations and more focused market efforts. Our revenue from operations is Rs. 5,876.41 Lakhs. During the FY 2025-26, Company has earned profit of Rs. 883.39 Lakhs.

KEY FINANCIAL RATIOS

PARTCULARS	FINANCIAL YEAR 31st March, 2026	FINANCIAL YEAR 31st March, 2025	Variance (%)
Current Ratio	1.97 Times	2.29 Times	(-13.81%)
Remark: Variation due to increase in current liabilities.
Debt-Equity Ratio	0.02 Times	0.05 Times	(51.07%)
Remark: Variation due to the issue of Equity shares during the Year.
Debt Service Coverage Ratio	40.45 Times	17.48 Times	131.42%
Remark: Variation due to higher operating profits and improved debt servicing capacity.
Return on Equity Ratio	7.45%	17.87%	(58.33%)
Remark: Variation due to more increase in Equity than Earning.
Inventory turnover ratio	NA	NA	NA
Remark: Not Applicable to the Company
Trade Receivables turnover ratio	1.96 Times	3.31 Times	(40.79%)
Remark: Variation due to increase in trade receivables during the year.
Trade Payable turnover ratio	2.35 Times	3 Times	(21.54%)
Remark: Variation due to increase in average trade payables during the year.
Net capital turnover ratio	2.63 Times	3.45 Times	(23.75%)
Remark: Variation due to increase in working capital during the year.
Net profit ratio	15.03%	9.66%	55.62%
Remark: Variation due to increase in earning during the year.
Return on Capital employed	6.49 %	22.33 %	(70.95%)
Remark: Variation due to more increase in Capital Employed during the Year.
Return on Investment	NA	NA	NA
Remark: Not Applicable to the Company

OPPORTUNITIES

Technology, AI, and IT services are growing fast worldwide, which means more need for cybersecurity. This is a big chance for us to use our strengths, grow our business, and increase profits. In India, business is expanding quickly, and were also building our presence in the USA and UAE to tap into the Gulf market. Our current setup is ready to support this growth.

THREATS

1. More Competition

More players in the market may force prices down.

Our Edge: We already work with major clients and can deliver high-quality services at fair prices.

2. High Employee Turnover

The IT industry sees a lot of job switching, which can mean losing trained staff and needing to hire replacements. (Our Approach: We focus on retaining talent by offering training, career growth, and incentives. Our HR team is confident in keeping our key people.)

RISK & CONCERNS

1. Management of Employees and Employee Costs

Our growth and ability to win new projects depend on hiring, training, and keeping skilled IT professionals, especially project managers, engineers, and other senior staff. With high demand in the market and strong competition for talent, its not always easy to find or retain the right people. If key employees leave, we face higher costs to hire and train replacements, and it may take time for them to reach full productivity. The IT industry in India also has high attrition rates, which adds to the challenge. We invest in training, but we must constantly keep our teams skills up to date with changing technology, standards, and customer needs. Losing experienced talent or failing to replace them with equally skilled people can directly affect our performance.

2. Foreign currency fluctuations

A large part of our revenue comes from international clients, so we deal in multiple foreign currencies. This exposes us to exchange rate risks, which can impact our profits and cash flow. Although some expenses naturally offset these risks, we still face exposure when revenues and costs are in different currencies. Our main currency exposures are USD, Euro, GBP, and AED. We follow a foreign exchange hedging policy to reduce this risk, but changes in currency value can still affect our competitiveness in the global IT market.

3. Security breaches in Software, data and network infrastructure and fraud

As a cybersecurity company, we handle large amounts of sensitive customer data and operate critical network infrastructure. We also rely on third-party tools for secure transactions, but we cant fully control their security measures. Any breach, whether from hackers, malware, or insider threats, could lead to stolen data, system downtime, financial loss, contract termination, or damage to our reputation. We may need to spend significant time and money to prevent or address such breaches. Issues like malware could also cause fraudulent charges for customers, harming trust in our services.

HUMAN RESOURCES/ INDUSTRIAL RELATIONS

We see our employees as our biggest asset and a key part of our success. Our HR policy is designed to create a positive work environment, encourage growth, provide equal opportunities, and keep our team competitive while aligning their goals with the companys vision. Our HR team focuses on building and retaining a strong, talented workforce. We offer opportunities for both professional and personal growth, along with engagement and development programs to boost skills and productivity. As of March 31, 2026, our employee strength stood at 207. Industrial relations during the year were stable, peaceful, and cooperative.

INTERNAL CONTROL AND THEIR ADEQUACY

We have a strong internal control system that matches the size and complexity of our business. These controls help manage risks, keep financial information accurate, ensure timely reporting, protect company assets, and comply with all laws and regulations. Our internal auditors regularly monitor these controls, and the Audit Committee reviews their reports to make sure any issues are quickly corrected. Key findings are shared with management, which takes prompt action when needed.

CAUTIONARY STATEMENT

This report includes forward-looking statements about SISLs future plans and financial performance. These are based on certain assumptions and are subject to risks and uncertainties. Actual results may differ significantly from what is stated here. Readers should not rely solely on these statements, as various factors could cause changes. This section should be read along with the assumptions, qualifications, and risk factors mentioned in the Management Discussion and Analysis of this Annual Report.

Date:- 26th August 2026	On behalf of the Board of Directors
Place:- Ahmedabad
	Sd/-	Sd/-
	Sachhin Gajjaer	Ronak Gajjar
	Managing Director	Whole Time Director & CFO
	DIN: 06688019	DIN: 07737921