Signpost India Ltd Management Discussions

COMPANY OVERVIEW

Signpost manages and operates key urban touchpoints of a city including street furniture, smart-transit media & digital screens - powered by its proprietary AdTech engine, Captura. This provides leading brands with access to Indias largest high-dwell public spaces network, in an urban environment where prime media space is finite and tightly regulated.

Signpost India Limited is Indias first vertically integrated Urban Experience Platform - an operating system for how brands engage with cities. The enterprise runs the physical nodes through which urban India consumer life cycle revolves - network of Bus Queue Shelters, EV/CNG bus Fleets, metro station architecture, Skywalks, billboards and digital screens - and layers them with its proprietary AdTech engine, to deliver high-yield, programmatic advertising at scale (beta testing mode).

This combination of scarce physical real estate and proprietary technology is the core of the Companys moat: high-dwell urban space is limited in supply and regulated by civic authorities, and Signposts long-term concessions give it privileged access to it.

Network at a Glance

Three Strategic Pillars

1. MSME & Local Brand Acceleration: Mid-market and regional brands with market capitalizations under Rs.5,000 crore possess rapid growth potential driven by operational agility and local market strength. Aligned with the broader "Vocal for Local" momentum, our platform democratizes access to prime physical displays for these emerging enterprises—spanning Fashion & Lifestyle, Retail, Education, Real Estate, and Travel-while continuing to serve leading corporate accounts.

2. Expanding Realisation & Asset Productivity. The strategic conversion of digitisation is the real play and pricing them optimised revenue contribution - digital nodes are only 7.5% of the network by count and 2.4% of it by display area, yet already contributed 26% within total revenue, at an average realisation of ~Rs.1,364 per sq. ft.

3. Asset-Light Expansion plan. Under implementation of Asset Light model has multiple opportunities to grow the network and capabilities to serve the existing client base in bigger geographical areas and more matured relationships to grow further.

A. Industry Structure and Developments

Indias advertising industry grew 9% in 2025 to Rs.2.78 trillion (FICCI-EY Media & Entertainment Report 2026). Out-of-Home (OOH) media was the fastest-growing physical advertising segment, up 13% to Rs.67.0 billion, and is projected to reach Rs.79.1 billion by FY28.

• Advertisers are shifting budgets toward formats that cannot be skipped or blocked, as digital advertising fragments and online acquisition costs rise — led by Real Estate, Organised Retail, Consumer Services, FMCG and BFSI.

• Transit media — metro systems, bus networks and transport hubs — is the single largest OOH category, as captive commuter dwell time delivers reliable, measurable attention.

• Digital screens are replacing printed panels industry-wide, as they can be booked, priced and measured the way digital media is, while remaining impossible to skip.

B. Network Footprint

I The networks edge lies less in any single asset and more in the breadth of its footprint across regions and formats — and in how much more each digital sq. ft. earns than a static one.

Source: Company asset records, FY26.

West and South together account for the large majority of the networks physical footprint, while the North region is fully digital - illustrating how the Company mixes market-specific formats: large-format static assets where reach matters most, and fully digital nodes where programmatic yield can be maximised.

C. Opportunities

I The opportunities below are specific to how Signpost monetises its existing footprint — not generic industry tailwinds.

MSME Penetration & Repeat Business

The Company serves ~700 active clients, of which 44% are repeat advertisers and 41 % are new to the network in FY26. By client type, MSME and regional brands account for 371 clients (53%) against 294 corporate accounts (42%) — evidence that the MSME-focused channel is now a majority of the client base by count, not a side channel.

Programmatic Yield Expansion

Automating inventory, dynamic pricing and booking through Captura is ability to add revenue, currently in beta testing, with incremental gains each quarter as the model matures and enable access to digital budget spends of brands into OOH via programmatic placements which is normally consumed by digital mediums like social media and smart screens including Smartphones, CTV, DOOH, etc.

Model of fixed period to pulse in Digital Conversion Roadmap

The Adtech is supporting to trigger the sales from monthly plans to slot plans, enabling aspirational impulsive brands to Digital OOH which they use to shy away from due to budget constraints. This model has succeeded well in testing markets specially Puri, Bhubaneswar & Nagpur. This would propel the current contribution of digital revenue constituting 2.4% of the Companys total display area beyond the existing share of 26% of net revenue. The network is adding digital capacity at a monthly average of ~2,255 sq. ft. — of which ~775 sq. ft. comes from converting existing static panels, and ~1,480 sq. ft. from new digital additions.

Projected digital share of display area = (Current digital area + monthly net digital addition x months) -r- (Current total area + monthly new-digital addition x months)

Conservative, straight-line projection at the current monthly run-rate, with no assumed acceleration. Source: Company asset records, FY26. Experiential Activations

Pairing high-footfall transit locations with sampling, interactive installations and pop-up activations adds further high-margin revenue on top of standard media sales.

Cash Conversion Discipline

The business and client servicing teams have continued to tighten the collection cycle — through continually improving and structured strategic invoicing cycles with closer coordination with ground operations and joint formulation of client SOPs — this has started to shorten the time between revenue recognition and cash realisation, enabling better cash flow and rating. The CRISIL has rated the enterprise in "A" family.

Geographic Mix

88% of the Companys display area sits in Tier-1 metros, where institutional ad budgets are concentrated; the remaining 12% spans Tier-2, spiritual and tourism destinations that see high, steady year-round footfall from pilgrims and tourists, giving national brands deeper regional reach without a proportionate rise in cost.

D. Key Risks and How They Are Managed

Risk governance is aligned with the charter of the Risk Management Committee.

E. Segment-wise and Operational Performance

In accordance with Ind AS 108, the Company operates in a single reportable segment: Out-of-Home Media and Civic Infrastructure Commercialisation.

F. Business Performance

The financial statements for the year ended 31 March 2026 have been prepared under Indian Accounting Standards (Ind AS), as prescribed under the Companies (Indian Accounting Standards) Rules, 2015, and Section 133 of the Companies Act, 2013.

Revenue

Consolidated revenue from operations rose 27.07% to Rs. 57,593.43 lakhs (FY25: Rs.45,322.41 lakhs), driven by legacy and emerging client base aggregating ~ 400 clients and blending new asset commissioning, the higher digital monetisation with slot base mechanics will expand the larger client base and spend commitments and operating leverage on newly launched transit corridors.

Profitability

Consolidated PAT more than doubled to Rs. 7,021.00 lakhs (12.19% of revenue), up from Rs.3,390.35 lakhs (7.48% of revenue) in FY25 — a 107.09% increase. Operating EBITDA grew 64.89% to Rs. 14,660.10 lakhs, with margin improving to 25.45% from 19.62%, reflecting the operating leverage that comes from adding digital, higher-margin revenue onto an existing cost base.

Balance Sheet

Current assets rose to Rs.38,487.13 lakhs (FY25: Rs.25,151.91 lakhs), largely on higher trade receivables, cash and deferred revenue expenses tied to expanded operations. Non-current assets were broadly stable at Rs.30,284.12 lakhs (FY25: Rs.30,350.02 lakhs), as capital work-in-progress was commissioned into active assets.

Paid-up equity capital was unchanged at Rs.1,069.00 lakhs. Other equity rose to Rs.27,699.82 lakhs (FY25: Rs.20,951.81 lakhs) on higher retained earnings. Non-current liabilities declined to Rs.9,056.61 lakhs (FY25: Rs.9,297.00 lakhs) on scheduled debt repayment, while current liabilities rose to Rs.30,618.26 lakhs (FY25: Rs.23,866.25 lakhs), mainly on trade payables and statutory dues linked to newly activated civic projects.

G. Outlook

• Deepen MSME and self-serve demand: expand digital media buying from fixed slot based to dynamic impression based to attract aspirational brand spends, regional advertisers and digital-first marketers.

• Accelerate digital conversion: continue converting static inventory and onboarding third-party asset owners onto Captura tech stack, particularly in Tier-2 and Tier-3 hubs.

• Sharpen cash conversion: tighten collections cycles and billing discipline to support internally funded growth.

• Protect balance sheet strength: maintain low leverage and embed ESG standards across new deployments.

F. Internal Control Systems and Their Adequacy

The Company has an adequate internal control system commensurate with the size and nature of its business. Pursuant to Section 138 of the Companies Act, 2013, and the rules made thereunder, Arun S Goel & Company, Chartered Accountants, has been appointed as Internal Auditor of the Company to review its operations and report findings to the Audit Committee.

H. Material Developments in Human Resources / Industrial Relations

The Company follows a policy of building a strong team of talented and experienced professionals, and provides a stress-free, healthy working environment for employees. Headcount is commensurate with the size, nature and scale of the Companys operations. As on 31 March 2026, the Company employed 485 people.

I. Details of Significant Changes in Key Financial Ratios

Pursuant to Schedule V(B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, the table below sets out key financial ratios for FY 2025-26 compared with FY 2024-25.

J. Details of Change in Return on Net Worth (RoNW)

Pursuant to the provisions of Schedule V of the SEBI Listing Regulations, details of the change in Return on Net Worth are set out below:

• FY 2025-26 Return on Net Worth: 24.40%

• FY 2024-25 Return on Net Worth: 15.18%

• Change: +922 bps (+60.74% relative increase)

The expansion in Return on Net Worth is attributable to a 107.09% increase in Consolidated Profit After Tax, which reached Rs.7,021.00 lakhs in FY26 compared with Rs.3,390.35 lakhs in FY25. This earnings growth was driven by:

• Accelerated digital monetisation: DOOH revenue contribution expanded from 19% to 26% of overall revenue, delivering higher gross realisations per display.

• Transit asset maturity and capacity utilisation: operating leverage realised across large-scale civic transit concessions.

• Operating cost efficiency and deleveraging: Operating EBITDA margin expansion to 26.31%, supported by improved interest coverage and strong internal cash conversion.

Disclosure of Accounting Treatment

In the preparation of the financial statements, applicable Accounting Standards have been followed to present the facts in a true and fair manner.

Disclaimer

Certain statements made in this Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, estimates and similar matters may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from such estimates or projections, whether expressed or implied. Several factors - including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, and exchange rate fluctuations, over which the Company has no direct control - could significantly affect the Companys operations. This report should be read in conjunction with the Companys financial statements and the notes thereto.