Shradha AI Technologies Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

During FY 2025-26, the global economy faced several challenges, including high interest rates, inflation, geopolitical tensions, trade uncertainties, and supply chain disruptions. Despite these factors, global economic growth remained stable, with emerging economies performing better than many developed countries due to strong domestic demand, infrastructure spending, and increasing digital adoption.

Geopolitical conflicts and fluctuations in energy and commodity prices continued to create uncertainty for businesses worldwide. Higher borrowing costs and currency volatility also affected investment decisions across industries.

In this environment, the technology sector remained relatively resilient. Businesses continued to invest in digital transformation, cloud computing, cybersecurity, data management, automation, and Artificial Intelligence (AI) to improve efficiency and competitiveness. Global IT spending continued to grow as organizations prioritized technology- driven solutions.

While customers remained cautious about discretionary spending, demand for infrastructure modernization, cybersecurity, cloud services, and AI-enabled solutions stayed strong. Organizations increasingly focused on cost optimization, operational efficiency, and measurable business outcomes.

Looking ahead, the global outlook remains positive but subject to uncertainties arising from geopolitical developments, trade policies, inflation trends, and economic conditions. The Company remains focused on leveraging opportunities in software, hardware, and AI while maintaining operational discipline and delivering value to customers and stakeholders.

INDIAN ECONOMIC OVERVIEW

Indian Economic Overview During FY 2025-26, the Indian economy remained strong and continued to be one of the fastest-growing major economies in the world. Economic growth was supported by healthy domestic demand, strong performance of the services sector, government infrastructure spending, and increasing digital adoption across industries. Inflation remained under control, helping maintain stable business and investment conditions. Indias growth continues to be driven by consumer spending, investments, and government initiatives such as Digital India. The country also witnessed steady growth in manufacturing, financial services, and technology sectors. Rapid adoption of digital payments, cloud computing, artificial intelligence (AI), and data-driven solutions further strengthened the digital economy. The IT and technology sector continued to grow as businesses increased investments in cloud, cybersecurity, AI, automation, and digital transformation initiatives. India also remained a preferred destination for technology development and innovation, supported by a strong talent pool and expanding Global Capability Centers (GCCs). While global uncertainties, geopolitical tensions, and slower demand in some international markets created challenges, Indias strong domestic fundamentals helped support economic growth.

Looking ahead, continued investments in infrastructure, technology, and digital transformation are expected to create significant opportunities for businesses. The Company remains well-positioned to benefit from these trends through its software, hardware, and AI-driven solutions.

INDUSTRY OVERVIEW

The IT industry faced challenges over the last two years due to high inflation, rising interest rates, and economic uncertainty, which led to lower spending on technology products and services. Despite these difficulties, the industry remained resilient by focusing on innovation, efficiency, and value-driven solutions.

Global IT spending is expected to grow strongly and reach around USD 6.15 trillion in 2026, driven by investments in data centers, servers, and digital infrastructure. Artificial Intelligence (AI) continues to be a major growth driver, with organizations increasingly adopting AI solutions to improve business performance and productivity.

In India, IT spending is projected to reach about USD 176.3 billion in 2026, supported by growing demand for AI, cloud technologies, digital transformation, and Global Capability Centres (GCCs). Hiring in the sector has also increased due to the need for skilled technology professionals.

The Indian AI market is expected to grow rapidly, supported by government initiatives and investments aimed at strengthening AI adoption, digital skills, and innovation. Overall, the IT industry is entering a more stable growth phase, backed by continued investments in technology and digital transformation.

BUSINESS OVERVIEW:

Your Company, SAITL, operates in the Information Technology, software and hardware sector, offering a broad portfolio of products and services. The Company is engaged in the trading and distribution of computer systems, peripherals, hardware, software, data processing equipment, telecommunication products, networking solutions, LAN infrastructure, and related IT products.

The Company also provides services in the areas of computer education and training, database management, system integration, network integration, software development, and e-commerce solutions. Its capabilities extend to the design, development, customization, implementation, maintenance, and support of software applications, web-based platforms, mobile applications, portals, and other digital solutions.

In addition, SAITL undertakes IT and telecom project implementation, annual maintenance services, and the distribution of IT hardware, software, cybersecurity solutions, and enterprise technology products. The Company offers end-to-end technology solutions to both consumer and business segments, supported by a wide range of allied IT services. Leveraging its industry expertise, technical capabilities, and strategic partnerships, SAITL delivers integrated solutions that address evolving business requirements. Its service offerings span consulting, solution design, engineering, deployment, and operational support, enabling customers to build secure, scalable, and future-ready businesses.

The Companys IT Services division provides a comprehensive range of services, including application development, infrastructure management, customer experience solutions, cybersecurity, data analytics, research and development, and hardware and software design. The IT Products division offers leading third-party technology products such as computing and storage systems, networking equipment, enterprise security solutions, databases, and operating systems. These capabilities strengthen the Companys ability to deliver complete system integration and digital transformation solutions.

SAITL continues to focus on expanding its consulting and digital services portfolio while adopting a selective and value- driven approach towards system integration opportunities. Guided by a culture of excellence, innovation, and growth, the Company remains committed to the highest standards of integrity, ethics, and corporate governance, fostering long-term trust among its customers, business partners, and investors.

RISKS AND CONCERNS:

In a rapidly evolving business environment, the ability to respond quickly to market changes is essential for sustainable growth and competitiveness. One of the key risks businesses face is the failure to adapt to changing customer expectations and industry trends. To address this, the Company focuses on continuous innovation, maintaining a diverse portfolio of quality products and services, and adopting competitive pricing strategies. Regular monitoring of market developments enables the Company to identify opportunities and respond proactively.

The Company is also committed to sustainable business practices and long-term value creation. Its robust risk management framework helps identify, evaluate, and mitigate risks arising from both internal and external factors. Risk assessments are conducted regularly, and significant matters are reviewed and reported to the Board of Directors to support effective governance and decision-making.

Ensuring the health, safety, and well-being of employees, visitors, and surrounding communities remains a core priority. The Company continuously strengthens its safety culture through well-defined policies, regular training programs, adherence to safety standards, and the use of advanced systems and processes. Safety performance and policies are periodically reviewed by the Board to ensure ongoing improvement and compliance.

The Company also maintains a strong focus on regulatory compliance. Supported by an experienced in-house team and external experts, it ensures adherence to applicable laws, regulations, and industry standards. Compliance processes are regularly monitored and updated to address changes in the regulatory environment. This commitment to ethical business practices and compliance is embedded across the organization and is subject to regular oversight by the Board of Directors.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established a comprehensive internal control framework that is appropriate to the scale and nature of its operations. The framework comprises well-defined policies, procedures, and control mechanisms designed to ensure efficient business operations, compliance with applicable laws and regulations, protection of assets, prevention and detection of fraud and errors, and the accuracy and reliability of financial reporting.

The internal control system supports effective governance, risk management, compliance, financial management, and operational performance, while ensuring that business activities are aligned with the Companys strategic objectives.

The Audit Committee periodically reviews the effectiveness and adequacy of the internal control environment. Significant findings and recommendations arising from such reviews are communicated to the management, which undertakes necessary corrective actions to strengthen the control framework wherever required.

Based on its review and evaluation in accordance with the provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee is of the opinion that the Companys internal financial controls were adequate and operating effectively as at March 31, 2026.

FINANCIAL PERFORMANCE :

Key Highlights of Overall Financial Performance (Rs. In lacs):-

• During the current financial year 2025-2026 ended 31st March 2026, the Companys total Revenue from operation is Rs. 1885.66/- as against Rs. 1,479.47/- in the corresponding previous financial year 2024-2025 ended 31st March 2025.

• Income from other sources is Rs. 280.76/- as against Rs. 288.20/- in the corresponding previous financial year 2024- 2025 ended 31st March 2025.

• The Profit after tax (PAT) for the financial year 2025-2026 ended 31st March 2026 is Rs. 1055.29/- as against Profit of Rs. 970.36/- of the corresponding previous financial year 2024-2025 ended 31st March 2025.

Key financial ratios:

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

At SAITL, our employees are our greatest strength and play a key role in supporting business growth. We continue to focus on building a skilled, agile, and future-ready workforce through technology, training, and employee-focused initiatives.

The Company is increasingly using digital tools and AI to improve HR processes, enhance employee experience, and support better workforce planning. We also continue to invest in training and development programs to strengthen skills in key areas such as cloud computing, cybersecurity, data engineering, and artificial intelligence.

During the year, the Company aligned its compensation structure with the new Labour Codes and conducted awareness sessions to help employees understand the changes and benefits. We also focused on leadership development, performance management, and career growth opportunities to build a strong talent pipeline.

Employee safety, well-being, and workplace respect remain top priorities. The Company complies with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and has a POSH Policy and Internal Complaints Committee in place for timely resolution of complaints.

Going forward, we will continue to focus on skill development, employee engagement, talent retention, and workforce productivity to support sustainable growth and meet evolving business needs.

ROAD AHEAD:

SAITL continues to focus on high-value and profitable service offerings in Indian markets. The Company works closely with customers to explore new opportunities in digital transformation across both private and public sectors.

As part of its growth strategy, SAITL is investing in emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to deliver innovative, scalable, and business-focused solutions. Leveraging its technology expertise and industry knowledge, the Company aims to meet the evolving needs of enterprises.

The Company has also strengthened its Infrastructure Services portfolio, recognizing the growing importance of reliable and secure IT infrastructure in supporting digital transformation initiatives.

The Company provides a wide range of technology solutions, including cloud computing, cybersecurity, data management, networking, and enterprise IT infrastructure. These solutions help organizations improve efficiency, flexibility, and business continuity.

With increasing cybersecurity risks, the Company offers services such as identity and access management, threat detection, endpoint security, and cyber threat monitoring to protect critical digital assets. It is also expanding its capabilities in infrastructure modernization, hybrid cloud solutions, and managed services to meet the growing demand for scalable and cost-effective IT solutions.

Operating across domestic markets, SAITL delivers integrated technology solutions that support digital transformation and business growth. With continued investments in AI, machine learning, cybersecurity, cloud technologies, and modern infrastructure solutions, SAITL is well positioned to support customers evolving technology needs and drive sustainable long-term growth.

CAUTIONARY STATEMENT:

The statements made in this Management Discussion and Analysis relating to the Companys future plans, expectations, objectives, or projections are forward-looking in nature. Actual results may differ from those expressed or implied due to various factors, including changes in government policies, tax regulations, economic conditions, political developments, market trends, and other factors beyond the Companys control.