A detailed report on Management Discussions and Analysis is given below as required under Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
INDUSTRY OVERVIEW
Technology has emerged as a key value driver of the global economy, representing a multi-trillion-dollar opportunity. Over the past three decades, the technology sector has consistently outpaced traditional industries in terms of growth; this trend is expected to continue well into the next decade. Increasingly, global enterprises recognize that technology is no longer just an enabler of operations, but a strategic driver of growth and transformation.
In this context, cloud computing, Artificial Intelligence (AI), and other emerging technologies are poised to redefine business models, reshape enterprises, and create new value streams. The adoption of these technologies is enabling organizations gain a competitive edge, drive innovation, and enhance efficiency across sectors. As a result, the global IT services market is primed for significant expansion, underpinned by sustained technological advancements and increasing digital adoption worldwide.
The global AI market is projected to experience substantial growth by 2030, with estimates ranging from $1.237 trillion to $1.811 trillion, driven by increasing adoption across various sectors. This growth is fueled by advancements in AI technologies, the rise of cloud computing, and the increasing demand for data-driven decision-making.
WORLDWIDE PUBLIC CLOUD SERVICES END-USER SPENDING FORECAST (USD MILLION)
2024 spending | 2024 growth (%) | 2025 spending | 2025 growth (%) | |
Cloud Application Infrastructure Services (PaaS) |
171,565 | 19.1 | 208,644 | 21.6 |
Cloud Application Services (SaaS) |
250,804 | 18.1 | 299,071 | 19.2 |
Cloud Desktop-as-a-Service (DaaS) |
3,466 | 7.7 | 3,849 | 11.1 |
Cloud System Infrastructure Services (IaaS) |
169,818 | 21.3 | 211,856 | 24.8 |
Total Market |
595,652 | 19.2 | 723,421 | 21.5 |
IaaS and PaaS spending:
IaaS and PaaS are at the heart of modern digital transformation amid surging AI, hybrid cloud architectures, and compliance requirements. The growth of industry and vertical specific GenAI models which are curated, private and secure, and the require advanced training, inferencing and fine tuning, will continue to drive the growth of public cloud services spending globally. Organizations are increasingly attracted to the efficiencies of cloud infrastructure and platform services offerings; and expect the platform to be capable of delivering IaaS and PaaS as an integrated cloud services. Therefore, organizations should stay ahead focusing on building on AI capabilities, and multi-cloud interoperability.
COMPANY OVERVIEW
SecureKloud is an industry-recognized global leader in digital transformation solutions, specializing in cloud enablement, managed services, intelligent document automation, AI-powered data analytics, cybersecurity SaaS and PaaS. With over a decade of expertise in cloud services and consulting for highly regulated industries, we have built a strong reputation for enabling enterprises to embrace and evolve with digital technologies.
Our mission is to change the world through digital transformation by empowering businesses to innovate securely and efficiently. SecureKloud?s comprehensive suite of platforms, solutions, and services enables some of the world?s leading enterprises to accelerate their cloud adoption journey, modernize applications, ensure regulatory compliance, and leverage advanced data insights.
By combining deep domain expertise, global delivery capabilities, and a robust portfolio of proprietary platforms, SecureKloud provides clients with resilient, scalable, and future-ready technology solutions that help them remain competitive in an increasingly digital-first economy.
Our Business Model
We provide our solutions primarily to Healthcare, Life sciences, Manufacturing, Banking & Financial service sector and Transport logistics, who directly procure our cloud offerings. Our revenue model is built on three primary streams:
Advisory and Consulting Services - guiding customers through cloud strategy, architecture, migration, and compliance.
24x7 Managed Services - delivering round-the-clock monitoring, infrastructure management, security, and cost optimization.
SaaS-based Platform Offerings - licensing and subscription-based revenues generated from proprietary platforms in cloud automation, data analytics, blockchain, and intelligent document management.
This combination of recurring managed services and scalable SaaS platforms provides a resilient revenue base, while consulting engagements deepen long-term client relationships and create opportunities for cross-sell and up-sell.
Our Strategy
We employ a multi-pronged approach designed to expand adoption among new customers and to increase penetration within our existing customer base.
Direct Sales: Our dedicated sales team, with deep domain expertise in cloud transformation, engages directly with CIOs, CTOs, and other key decision makers. This focus has led to growing adoption of our managed services by large strategic customers, increased traction with health systems, and rising demand for add-on offerings.
Customer Retention & Expansion: Our model emphasizes long-term customer value. Renewals and expansions deliver incremental revenue with minimal additional acquisition or implementation costs, improving margins over time. As a result, sales and marketing costs decrease as a percentage of revenue as renewals and upselling account for a greater share of growth.
Cross-sell & Upsell Focus: We strategically design our offerings to maximize cross-sell potential. Once a customer is onboarded onto our platforms, the opportunity to extend services is significantly enhanced.
Client Success Organization: A dedicated client success team provides both strategic insights and day-to-day account support, ensuring customer satisfaction, retention, and expansion.
Strategic Alliances: We selectively form partnerships to strengthen customer acquisition, broaden adoption, and enhance the value proposition of our offerings.
Our product offerings Cloudedge
Pre-built, HITRUST certified, highly automated, fully managed, secure & compliant multi-cloud platform that supports public/private/hybrid deployments to power your cloud for business to innovate faster, lower costs and drive new business models.
CloudEdge, a HITRUST certified automated and secure, cloud foundation platform enables enterprises accelerate cloud adoption. CloudEdge framework enables customers manage their cloud infrastructure across public, private and hybrid cloud infrastructure. CloudEdge is deployed in highly regulated industries where data security is foremost. The CloudEdge delivers an automated infrastructure compliant framework that ensures continuous compliance in highly regulated industries.
According to Precedence Research, the global cloud computing market size is projected to hit around US$ 1,614.10 billion by 2030 and witness growth at a CAGR of 1743% from 2022 to 2030. The accelerated adoption of Cloud among global organizations and the rising focus on data security and compliance requirements provides significant opportunity for our platforms to be adopted by enterprises who seek to scale up fast. Configured to HITRUST, SOC2, HIPAA, PCI, GDPR standards, security and regulatory protocols, customers are assured of reducing the risk of data breaches while ensuring smooth transition of their cloud infrastructure across any cloud service provider.
DataEdge
A data analytics & AI engineering platform which allows you to focus on your data and its insights.
According to Fortune Business Insights, the global Big Data Analytics Market size is projected to reach USD 745.15 billion by 2030, at a CAGR of 13.5% during the forecasted period. Analysis of structured and unstructured databases with Big Data Analytics provides better insights on hidden patterns, correlation, converting market place trends and more. Big Data analytics enhances the capacity for data-driven decision making by enabling businesses to manage, process and simplify large datasets in real time. With the rising demand for customer retention, better lead management, and client experience management, the customer analytics segment is anticipated grow significantly.
Our DataEdge tool, a cloud-based data analytics and AI engineering platform enables enterprises to power insight-driven decision-making capabilities. It provides highly modular, scalable, and API-driven solutions to unlock data powered insights. Configured to HITRUST standards, DataEdge is a zero-code platform, which can be easily deployed in hours with zero development time.
Neutral Zone
Powering seamless third-party data sharing and collaboration for personalized healthcare and clinical studies while maintaining control of the IP
With a neutral zone, innovation no longer depends solely on the ability of one company to capture and analyze data. Instead, organizations partner with a third-party algorithm provider to create a secure area where AI/ML and other advanced algorithms may be applied to the data. It?s an approach that protects the security of the data as well as each organization?s intellectual property (IP). It also positions organizations to harness the power of patient data at scaletheir own and those of data research collaborators.
At a time when 70% of decision makers for data and data analytics are expanding their use of external data (according to Forrester report), a neutral zone supports access to a broad range of datafrom real-world evidence to information from clinical trialsas well as data science capabilities in days rather than months.
readabl.ai
An AI powered solution that converts faxes, scanned documents & blocks of text into patient/clinical information into intelligence and integrates with your systems.
Health Information Management (HIM) and clinical staff are overwhelmed with paper; and thousands of man-hours is lost moving paper from one point to another. readabl.ai extracts clinical information from faxes and other medical reports and through an automated AI/ML framework, converts the unstructured paper data into machine readable clinical information thereby improving patient care and health outcomes. readabl.ai is offered on a Software-as-a- Service (SaaS) subscription model.
DocuGenieAl
A smart, secure, and scalable AI-native Intelligent Document Automation (IDA) platform for enterprises.
The Company launched DocuGenieAI in the month of June 2025. DocuGenieAI is built for industries like Healthcare, BFSI, Manufacturing, Logistics, Ecommerce, and Legal, that want to streamline document workflows securely and intelligently.
24x7 Managed Services
End-to-end next generation managed services to streamline your IT functions & simplify cloud management to derive maximum value from your technology investments related to cloud (DevOps, SOC), data and health IT applications.
EHR implementation and Optimization
HCTI?s in-depth, EHR expertise helps hospitals and health systems plan and implement inpatient and outpatient systems. Our focus is on operational alignment, process enhancement, and measurable outcomes.
The rise of GenAI coupled with the rapid democratization of AI across industries has ushered in an unprecedented era of productivity, efficiency and innovation for global enterprises. Our AI and GenAI Practice enables clients navigate AI-enabled opportunities through our platforms and service offerings. In the coming years, we anticipate that AI/GenAI will be at the forefront of opportunities. We are confident that we will be able to deliver substantial value to our clients.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
SecureKloud has aligned its current systems of internal financial control with the requirement of Companies Act, 2013 and ensured its effectiveness.
SecureKloud?s internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies.
SecureKloud?s management assessed the effectiveness of the company?s internal control over financial reporting (as defined in Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as of March 31, 2025.
FINANCIAL PERFORMANCE Overview
The following tables gives the consolidated results of the company
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31,2025 |
% of Revenue |
For the year ended March 31,2024 |
% of Revenue |
Changes |
|
Amount | % | |||||
Revenue |
16,767 | 100.0% | 34,032 | 100.0% | (17265) | (50.7)% |
Cost of Revenue |
12,137 | 72.4% | 25,945 | 76.2% | (13,808) | (53.2)% |
Gross Profit |
4,630 | 276% | 8,087 | 23.8% | (3,457) | (42.7)% |
Research and Development |
150 | 0.9% | 974 | 2.9% | (824) | (84.6)% |
Selling, General and Administration expenses |
6,914 | 41.2% | 10,183 | 29.9% | (3,269) | (32.1)% |
Depreciation and Amortization |
790 | 4.7% | 1,737 | 5.1% | (947) | (54.5)% |
Other income |
295 | 1.8% | 162 | 0.5% | 133 | 81.8% |
Finance expenses |
1,615 | 9.6% | 1,543 | 4.5% | 72 | 4.6% |
Income tax expenses |
39 | (0.2)% | 71 | (0.2)% | (32) | (45.2)% |
Profit after tax |
(4,583) | (27.3)% | (6,259) | (18.4)% | 1,676 |
"We report our business under these line of services:
Software services
Managed services and support
Platform services"
Software Services
The Company earns revenue primarily through the sale of software services that is generated from providing strategic advisory, implementation, and development services. The Company enters into Statement of Work (SOW) which provides for service obligations that need to be fulfilled as agreed with the customer. The majority of our software services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain software services revenues are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred and customer acceptance.
Managed Services and Support
Managed Services and Support include post implementation support and cloud hosting. Managed Services and Support are a distinct performance obligation. Revenue for Managed Services and Support is recognized rateably over the life of the contract.
Platform Services
The Company had launched CloudEdge, DataEdge and Readabl. ai under SaaS model. The revenue contains a series of separately identifiable and distinct services that represent performance obligations that are satisfied over time.
The following table provides revenue by the line of service:
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31, 2025 |
% of Revenue |
For the year ended March 31, 2024 |
% of Revenue |
Changes |
|
Amount | % | |||||
Software Services |
8,700 | 51.9% | 21,022 | 61.8% | (12,322) | (58.6)% |
Managed Services and Support |
7,838 | 46.7% | 11,877 | 34.9% | (4,039) | (34.0)% |
Platform Services |
230 | 1.4% | 1,133 | 3.3% | (903) | (79.7)% |
Total revenue |
16,767 | 100.0% | 34,032 | 100% | (17,265) | (50.7)% |
Revenue decreased by Rs. 17,265 lakhs, or 50.7% amounting to Rs. 16,767 lakhs for the year ended March 31, 2025, as compared to Rs. 34,032 lakhs for the year ended March 31, 2024. Revenue from Software Services decreased by Rs. 12,322 lakhs or 58.6% due to loss of a major EPIC client. The Software Services are typically non-recurring short-term engagements to provide software consulting and development services. Managed Services and Support such as IT cloud hosting and support call for services on a continuous basis and allow for strengthening of client relationships which can lead to additional engagements from the client.
Factors affecting revenues of Software Services, Managed Services and Support and Platform Services
Our long-term growth strategy is centered on expanding Managed Services, Support, and Platform Services for both existing and new clients within our target markets. By leveraging these services as key growth drivers, we not only strengthen customer retention but also unlock new revenue opportunities.
We are intensifying our focus on subscription and platform-based models, which will broaden our customer base and improve recurring revenue visibility. This approach enhances customer stickiness and drives sustained engagement.
In parallel, our Software Services contracts, structured on a time-and-material basis, are supported by on-site employees delivering software services at customer locations. This balanced mix of managed, platform, and software services ensures scalability, predictability, and long-term client partnerships.
The following table provides the revenue from operating segments:
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31, 2025 | % of Revenue | For the year ended March 31, 2024 | % of Revenue | Changes Amount % |
|
Healthcare and Life Science |
8,640 | 51.5% | 22,707 | 66.7% | (14,067) | (62.0)% |
Information, communication & technology (ICT) |
8,127 | 48.5% | 11,325 | 33.3% | (3,198) | (28.2)% |
Total revenue |
16,767 | 100.0% | 34,032 | 100.0% | (17,265) |
Revenue from Healthcare and Life Science decreased by Rs. 14,067 lakhs, or 62% to Rs. 8,640 lakhs for the year ended March 31, 2025, as compared to Rs. 22,707 lakhs for the year ended March 31, 2024. The revenue drop in Healthcare and Life Science revenue is primarily dueloss of a major EPIC customer. Revenue from ICT decreased by Rs. 3,198 lakhs, or 28.2% to Rs. 8,127 lakhs for the year ended March 31, 2025, as compared to Rs. 11,325 lakhs for the year ended March 31,2024, mainly due to to one-time cloud consulting engagements.
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31,2025 | % of Revenue | For the year ended March 31,2024 | % of Revenue | Changes Amount % |
|
Revenue |
16,767 | 100.0% | 34,032 | 100.0% | (17265) | (50.7)% |
Cost of Revenue (exclusive of depreciation /amortization) |
12,137 | 72.4% | 25,945 | 76.2% | (13,808) | (53.2)% |
Gross Profit |
4,630 | 27.6% | 8,087 | 23.8% | (3,457) | (42.7)% |
The gross profits have decreased by Rs. 3,457 lakhs or 42.7% to Rs. 4,630 lakhs for the year ended March 31, 2025, as compared to Rs. 8,087 lakhs for the year ended March 31, 2024. The reduction in gross margins is on account of lower revenues from healthcare engagements.
Research and Development
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31,2025 | % of Revenue | For the year ended March 31,2024 | % of Revenue | Changes Amount % |
|
Research & Development |
150 | 0.9% | 9.74 | 2.9% | (824) | (84.6)% |
Research and development (R&D) expenses primarily relate to employee costs associated with the development and enhancement of our platform applications, along with certain third-party cloud hosting expenses.
For the year ended March 31, 2025, R&D expenses declined significantly by f 824 lakhs (84.6%), reducing to f 150 lakhs compared to f 974 lakhs in the previous year.
The expenditure during FY 2025 was mainly directed towards strengthening our readabl.ai platform, and ensuring the continued maintenance and optimization of existing platforms.
Selling, General and Administration expenses
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31, 2025 |
% of Revenue |
For the year ended March 31, 2024 |
% of Revenue |
Changes |
|
Amount | % | |||||
Selling, General and Administration expenses |
6,914 | 41.2% | 10,183 | 29.9% | (3,269) | (32.11%) |
Selling, general, and administrative (SG&A) expenses primarily comprise employee-related costs for personnel engaged in sales and marketing, administration, human resources, finance, legal, and executive management. These expenses also include:
Marketing and promotional costs, including research, trade shows, brand messaging, and public relations
Occupancy costs, such as rent, utilities, and facilities maintenance
Professional and consulting fees
Insurance and travel-related expenses
Transaction and integration costs, as well as contingent consideration and other administrative expenses
For the year ended March 31, 2025, SG&A expenses decreased by Rs. 3,269 lakhs (32.1%) to Rs. 6,914 lakhs, compared to Rs. 10,183 lakhs in the prior year.
This reduction was primarily driven by lower discretionary spending in sales and marketing and the rationalization of general administrative costs.
Finance expenses
(Rs. in Lakhs)
Financial Particulars |
For the year ended March 31,2025 | % of Revenue | For the year ended March 31, 2024 | % of Revenue | Changes Amount % |
Finance expenses |
1,615 | 9.6% | 1,543 | 4.5% | 72 4.64% |
Finance expenses increased by f 72 lakhs or 4,64% to f 1,615 lakhs for the year ended March 31, 2025, as compared to f 1,543 lakhs for the year ended March 31, 2024, this is primarily due to increase in short-term borrowing and finance expenses incurred on fund raising.
RISK MANAGEMENT
Restrictions on mobility and work visas related risks
While the customers have continued to place their confidence in us, there have been some challenges faced by SecureKloud during this period like restrictions on mobility due to the pandemic or due to legislation that limits the availability of work visas. One of the biggest challenges is the increased number of US H-1B visa rejections. This immigration issue has directly impacted SecureKloud in executing several projects, loss of opportunities, and increase in staff expenses due to hiring of more contractors and local employees, thereby contributing to less revenue and margin. However, this is being mitigated through effectively transferring the work to our facilities in Chennai but with a reduction in revenue.
Execution risk
While fixed-price contracts offer an opportunity to add better margins in the IP/non-linear execution model, they also expose us to execution risk in scenarios of any inability to adhere to delivery or quality SLA.
Employee related risk
Employee attrition and/or constraints in the availability of skilled human resources could pose a challenge for any services company, as major IT players are hiring aggressively. Your Company has kept its human capital at the centre and has initiated multiple steps for the overall development of its employees. We encourage an entrepreneurship culture within the organization and offer new challenges and opportunities for our employees. We have made significant investments in our recruitment and training programs. To mitigate the risks of attrition, we have embarked on a strategy of onboarding interns and freshers in good numbers while actively looking for lateral talent hires, where required.
Exchange rate risk
Given that the Company?s revenues are denominated in US dollars, fluctuations in foreign currency exchange rates could have an impact on the Company?s earnings.
Investment risk
The strength of the Company is IP developed over years of Research and Development (R&D). We expend costs that are unlikely to yield significant results in the future, in the year of accrual. We conduct regular impairment tests of all intangible assets created either by way of internal R&D and/or assets acquired through acquisitions.
HUMAN RESOURCES
At SecureKloud, our people are our greatest strength. Human resources are the cornerstone of our success. To attract and retain top talent, we maintain a comprehensive set of policies that are continuously refined in line with market trends. As of March 31,2025, we had a headcount of 166 employees.
Talent Acquisition
Our experienced talent acquisition team ensures we hire the best by conducting thorough in-person and virtual interviews alongside managers and technical teams. The entire recruitment processfrom candidate evaluation to inductionis fully digitalized.
Induction
All new joiners undergo a structured induction program that provides insights into the organization, our business, structure, and departmental functions. This helps them integrate smoothly into the company.
Work-from-Home Policy
With the reopening of our new office, we have adopted a hybrid work model, balancing in-office collaboration with flexibility.
Training & Development
Employees undergo a three-month online project training program and are encouraged to pursue professional certifications in areas such as AWS, Azure, IAM, Big Data, and Analytics. Currently, more than 150 of our technical staff hold professional certifications. To foster continuous learning, we also conduct monthly brown bag sessions on the latest developments in cloud and security technologies.
Medical Benefits
We continue to extend group medical insurance to cover employees, spouses, children, and parents, along with personal accident coverage for all staff. Our claims partner has streamlined the process, ensuring employees experience minimal hassle when raising or settling claims.
Rewards & Recognition
Our rewards and recognition program celebrates both individual and team achievements through instant and periodic awards. Nominations undergo a review process to maintain fairness and quality. In addition, special awards are given for innovation, brand ambassadorship, and social responsibility.
Performance Management
We follow an objective, collaborative performance management system. Managers and employees set goals together at the start of the year, with progress reviewed at year-end. In FY 2023, all associates completed appraisals based on their performance. Our new Performance Evaluation Policy enhances objectivity by increasing the frequency of feedback throughout the year.
Innovation
SecureKloud actively fosters innovation by supporting technically strong, out-of-the-box thinkers to develop ideas into proofs of concept. This not only drives innovation but also helps employees understand the process of building business cases and taking ideas to fruition.
Talent Retention
We retain talent through both career progression and competitive compensation. High performers are elevated into roles with greater responsibilities, supported by training, mentoring, and coaching. We also ensure internal pay parity and regularly benchmark our compensation against market trends to remain competitive.
Employee Engagement
To strengthen camaraderie and foster a sense of belonging, we organize a variety of engagement activities including offsites, cultural events, and indoor/outdoor sports competitions. These initiatives create a vibrant and connected workplace.
KEY FINANCIAL RATIOS
The disclosure of significant changes in the ratios as required under Schedule V of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 form part of the notes to the Financial Statements provided in this Annual Report.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.