Saven Technologies Ltd Management Discussions

(forming part of Boards Report) a. Industry structure and Developments

1) Global IT industry

The global information technology industry continued to witness strong expansion during CY 2025, supported by enterprise digital transformation, increasing adoption of cloud-based technologies and rapid advancements in artificial intelligence. Global IT spending was estimated at around USD 5.6 trillion in 2025 and is expected to grow significantly in CY 2026, with current industry estimates placing total spending at approximately USD 6.4 trillion. The growth is increasingly concentrated in technology segments associated with artificial intelligence, data centres, cloud infrastructure, software and technology-enabled services, reflecting a shift from experimental technology adoption towards broader business deployment and measurable productivity improvements.

Artificial intelligence is emerging as one of the principal catalysts for the next phase of technology investment, with enterprises increasingly incorporating generative AI and AI-enabled applications into business processes. The expansion of AI workloads is simultaneously accelerating investments in high-performance computing, servers, networking and data-centre capacity, while cloud adoption and application modernisation continue to support demand for scalable technology infrastructure. Cybersecurity and data protection are also receiving increased attention as organisations expand their digital footprint and manage evolving technology risks. Industry trends further indicate that businesses are becoming more focused on the commercial value and return on investment from technology initiatives, creating opportunities for IT service providers offering AI integration, cloud solutions, software development, managed services and digital transformation capabilities.

2) Indian IT industry

The Indian information technology industry maintained its growth trajectory during FY 2025-26, with industry revenues estimated at approximately USD 315 billion, compared with around USD 297 billion in the preceding year. The sector continued to benefit from Indias established position in global technology services, supported by a diversified portfolio spanning IT services, engineering and research, business process management, software products and technology infrastructure. Export-oriented business remained the principal contributor to industry revenues, while the domestic technology market also continued to expand as Indian enterprises increased their adoption of digital platforms and technology-enabled solutions. The industrys competitive strength continues to be underpinned by its large pool of skilled professionals, mature global delivery infrastructure, engineering capabilities and ability to provide technology solutions across multiple industry verticals and geographies. The nature of technology demand in India is also undergoing a structural shift, with clients increasingly seeking measurable business outcomes, automation and productivity improvements rather than conventional technology implementation alone. Artificial intelligence, generative AI, cloud modernisation, data engineering, cybersecurity, intelligent automation and application modernisation are becoming important areas of enterprise spending. At the same time, Global Capability Centres (GCCs) are expanding their presence in India and increasingly undertaking higher-value functions such as software engineering, product development, data science, AI research and digital innovation, thereby strengthening Indias role in global technology value chains. Engineering, Research and Development services are similarly gaining importance as global companies seek to develop products and technologies through distributed innovation models.

The industrys workforce ecosystem is simultaneously evolving in response to these technological changes. While overall employment continues to expand, the emphasis is increasingly shifting from volume-based hiring towards specialised digital capabilities and continuous reskilling. Professionals with expertise in AI, cloud architecture, cybersecurity, data analytics, software engineering and emerging technologies are expected to remain in strong demand. Technology companies are therefore investing substantially in training, internal mobility and AI-enabled development practices to improve productivity and address changing skill requirements. The increasing use of AI-assisted software development is also expected to reshape conventional delivery models, enabling teams to automate portions of coding, testing and documentation while placing greater emphasis on architecture, domain knowledge, solution design and quality assurance. Looking ahead, the Indian IT industry is expected to remain an important contributor to Indias services economy and global digital transformation ecosystem. Growth opportunities are likely to arise not only from traditional outsourcing engagements but also from cloud-led transformation, AI implementation, product engineering, digital platforms, managed services and industry-specific technology solutions. The convergence of technology services with consulting, engineering and business processes is creating opportunities for Indian companies to offer more integrated and outcome-oriented solutions. However, the industry will also need to navigate factors such as global technology spending cycles, pricing pressures, rapid technological obsolescence, intense competition for specialised talent and evolving data, AI and cybersecurity regulations. Companies that combine strong domain expertise with scalable delivery capabilities, continuous innovation and effective adoption of emerging technologies are expected to be better positioned to participate in the next phase of growth. b. Opportunities, Threats, Risks and Concerns

The fintech sector in India continues to offer immense growth opportunities, supported by a large, digitally engaged population, increasing smartphone penetration, and government initiatives promoting financial inclusion and digital payments. A key development this year is the Reserve Bank of India (RBI) lifting restrictions on banking partnerships, which now enables Saven to collaborate with more financial institutions to launch co-branded credit card programs. This is expected to open a significant revenue stream, particularly as small and medium-sized businesses increasingly seek tailored financial products to manage their operations and customer loyalty programs.

While this regulatory shift presents strong upside, the Indian fintech landscape remains complex due to evolving RBI guidelines on data privacy, cybersecurity, and fraud prevention. Companies must continuously adapt their offerings to remain compliant without compromising innovation. Nonetheless, the potential for scalable digital financial solutions remains compelling, making India a high-potential market for Savens strategic expansion.

In contrast, the offshore business outlook, particularly in the United States, has become more volatile. The escalation of tariff wars and trade-related tensions has introduced a new layer of uncertainty that could disrupt existing offshore contracts and future opportunities. As U.S. firms recalibrate their global sourcing strategies, Saven may face headwinds in maintaining and growing its offshore client base. Moreover, broader economic concerns, including inflationary pressures and cautious technology spending, continue to weigh on the industry. Despite these global uncertainties, the demand for AI application development remains resilient. Businesses across industries are accelerating digital transformation initiatives, driving strong demand for AI-powered solutions that enhance efficiency and deliver customer value. Saven is strategically positioning itself in this space by investing in AI talent development and creating solution prototypes that embed AI into customers existing tools and platforms.

However, the AI domain also presents notable risks: high entry barriers, significant upfront investments, and fierce competition from both large tech players and agile startups. To mitigate these risks, Saven is prioritizing workforce upskilling and agile solution delivery to maintain a competitive edge. c. Outlook

The global technology industry continues to witness structural shifts driven by artificial intelligence, cloud-native architectures, and the growing demand for real-time data intelligence. While macroeconomic headwinds - including geopolitical tensions arising from the ongoing Middle East conflict, signs of moderation in the US economy, and cautious enterprise spending in key international markets - present near-term challenges, the Company believes that the underlying demand for technology services remains resilient over the medium to long term. Enterprises across sectors continue to prioritise digital modernisation, process automation, and analytics-driven decision-making, creating sustained opportunities for specialised technology service providers.

Saven Technologies has established differentiated capabilities across financial services, healthcare, retail, and data-intensive industries through its work in web and mobile application development, big data platforms, data engineering, analytics solutions, and proprietary software products. The Companys internally developed software platform continues to be amortised and productised, and represents a strategic asset in the Companys long-term IP portfolio. The management believes that the Companys depth in data engineering and analytics positions it well to address the growing enterprise demand for AI-ready infrastructure and intelligent data pipelines.

The global outsourcing environment, however, continues to face structural pressures. The rapid adoption of AI-powered development tools by enterprises is beginning to impact traditional IT service consumption models. In addition, increasing internalisation of technology functions and shifting client priorities pose ongoing challenges to conventional offshore delivery. The Company acknowledges this evolving landscape and is actively responding through workforce reskilling, alignment of service offerings with AI-augmented delivery, and a deliberate focus on securing engagements in artificial intelligence and data engineering - both in the US market and domestically in India. New client acquisition in these emerging technology verticals remains a primary management objective for the current year.

The BPO vertical, which saw rationalisation in the prior year due to the closure of certain engagements, is being rebuilt through targeted additions, with a new engagement commenced during the current year. The management remains committed to maintaining operational discipline, delivering high-quality outcomes for clients, and creating sustainable long-term value for shareholders. With its experienced workforce, established client relationships, and growing capabilities in emerging technologies, the Company is confident of navigating the evolving market environment and pursuing disciplined, quality-led growth in the years ahead. d. Internal Control Systems and their adequacy

There are adequate internal control procedures and internal audit systems commensurate with the size of the company and nature of its business. The Management periodically reviews the internal control systems for further improvement. e. Discussion on financial performance with respect to operational performance

The financial statements have been prepared under the historical cost convention, on the basis of a going concern.

Disclosure of Accounting Treatment

The Companys financial statements for the year ended March 31, 2026 are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

Financial Position as at March 31, 2026 Non-Current Assets (a) Fixed Assets

There has been an addition of Rs.968.48 lakhs to the gross block of fixed assets. The additions are mainly towards Office Building, Hardware, computer software as well as infrastructure facilities. The entire capital expenditure was funded out of internal accruals.

(b) Capital work-in progress

The Company is developing software for fintech companies. The Capital work-in progress as on 31.03.2025 was Rs.179.69 lakhs and additions made during the year upto 31.05.2025 amounts tom Rs.1.14 lakhs and total work in- progress of Rs.180.83 lakhs is capitalized on 01.06.2025. Hence the closing work in-progress is NIL.

(c) Investments

The Company Investment in Mutual Funds (Debt Funds)

Net Asset Value (NAV) as on March 31, 2026 was Rs.495.48 lakhs as against Rs.784.75 lakhs as at March 31, 2025. During the financial year 2025-26, the Company did not invest any amount in the Mutual Funds.

(d) Loans

The Long term deposits as on March 31, 2026 is NIL.

Current Assets (a) Trade Receivables

The trade receivables were at Rs.404.49 lakhs as at March 31, 2026 as compared to Rs.308.07 lakhs as at March 31, 2025. These receivables are considered good and realizable.

(b) Cash and cash equivalents

The cash and bank balances as at March 31, 2026 stood at Rs.399.72 lakhs (including fixed deposits of Rs.377.41 lakhs) as against Rs.660.48 lakhs (including fixed deposits of Rs.636.63 lakhs) as at March 31, 2025.

(c) Loans and Others

Other Current assets were at Rs.9.35 lakhs as at March 31, 2026 as compared to Rs.56.10 lakhs as at March 31, 2025.

Share Capital

There has been no change in the authorized, issued, subscribed and paid capital. The paid up Share Capital was Rs.108.79 Lakhs as at March 31, 2026.

Other Equity

The company had at the beginning of the financial year an amount of Rs.550 lakhs in the General Reserve. During the financial year 2025-26 the company did not transfer any amount to Reserves.

There were no changes in Share Premium and Capital Reserve during the year and the same stood at Rs.189.47 lakhs and Rs.46.86 lakhs respectively. Other Equity as at March 31, 2026 stood at Rs.2050.85 lakhs as compared to Rs.1,901.62 lakhs as at March 31, 2025.

Trade Payables

Trade payables consist of payables towards purchase of goods and services and stood at Rs.28.10 lakhs as at March 31, 2026 (Rs.10.88 lakhs as at March 31, 2025).

Other Financial Liabilities

Other Financial Liabilities included Unclaimed Dividends Rs.31.81 lakhs as at March 31, 2026 (Rs.10.57 lakhs as at March 31, 2025) and Unclaimed Reduction of

Share Capital was Rs.11.58 lakhs as at March 31, 2026 (Rs.11.58 lakhs as at March 31, 2025).

Other Current Liabilities and Provisions

Other Current Liabilities included Statutory Remittances Rs.16.03 lakhs as at March 31, 2026. Provision for employee benefit was Rs.30.17 lakhs as at March 31, 2026.

Current Tax Liabilities (Net)

The Tax Liability was Rs.23.91 lakhs include other comprehensive income tax liability of Rs.12.55 lakhs as at March 31, 2026 as compared to Rs.8.60 lakhs include other comprehensive income tax liability of Rs.16.66 lakhs as at March 31, 2025.

Results of Operations

The total revenue for the year ended March 31, 2026 was Rs.2026.24 lakhs as compared to Rs.1494.67 lakhs for the previous year. The Earnings before interest, tax, depreciation and amortization (EBITDA) for the year under review was Rs.522.27 lakhs as compared to Rs.367.89 lakhs for the previous year. After considering depreciation, interest and Income tax the Net Profit was Rs.342.11 lakhs, as compared to Rs.259.20 lakhs for the previous year.

The Offshore Development & Services income for the year ended March 31, 2026 was Rs.1889.90 lakhs as compared to Rs.1430.42 lakhs for the previous year. The other income included fixed deposit interest income of Rs.27.52 lakhs as compared to Rs.44.40 lakhs in the previous year and Profit on Extinguished Investments (Mutual Funds) was Rs.72.02 lakhs as compared to -NIL- in the previous year. During the financial year ended March 31, 2026 favourable foreign exchange variance was Rs.25.81 lakhs as compared to Rs.7.85 lakhs for the year ended March 31, 2025.

Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2015) (Amendment) Regulations, 2018, the Company is required to give details of significant changes in key financial ratios.

Sr. No.	Key Financial Ratios	Fiscal 2026	Fiscal 2025
1.	Debtors Turnover	5.30	5.39
2.	Inventory Turnover	--	--
3.	Interest Coverage Ratio	--	--
4.	Current Ratio	6.05	13.02
5.	Debt Equity Ratio	--	--
6.	Operating Profit Margin (%)	21.65	23.10
7.	Net Profit Margin (%)	18.10	18.12
8.	Return on Net Worth	15.84	12.89

f. Material developments in Human Resources / Industrial Relations front, including number of people employed

Being engaged in a people-oriented business, it has been the Companys endeavour to create and encourage talent by providing a good working environment, need based training, career growth plans and a competitive remuneration package.

FORWARD-LOOKING STATEMENTS

Some of the statements contained in the above discussion are of a forward-looking nature and it will be appreciated that the Company cannot guarantee that these expectations will be realized. Actual results and outcome may, despite efforts on the part of the Company, differ materially from those discussed.