Skytech Infinite Platform Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial for the financial year ended on 31st March 2026, 31st March 2025 and 31st March 2024 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this red herring prospectus. You should also see the section titled "Risk Factors" beginning on page 24 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could impact our financial condition and results of operations. The following discussion relates to our Company, unless otherwise stated, is based on restated audited financial statements.

These financial statements have been prepared in accordance with Ind GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated June 18, 2026 which is included in this Red Herring Prospectus under the section titled "Financial Information as Restated" beginning on page 187 of this red herring prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 24 and 18 respectively, and elsewhere in this red herring prospectus.

Accordingly, the degree to which the financial statements in this Red Herring Prospectus will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 16 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as a Private Limited Company in the name of "Skytech Infinite Platform Private Limited" on May 28, 2009 under the provisions of the Companies Act, 1956 bearing Corporate Identification Number U51506KA2009PTC049970 issued by the Registrar of Companies - Bangalore. Subsequently, our company was converted into Public Limited Company under the provisions of the Companies Act, 2013 and the name of our Company was changed to "Skytech Infinite Platform Limited" vide a fresh Certificate of Incorporation consequent upon conversion from Private Company to Public Company dated July 09, 2024 bearing Corporate Identification Number U51506KA2009PLC049970 issued by the Registrar of Companies - Central Processing Centre.

Skytech Infinite Platform Limited specializes in providing comprehensive turnkey automation solutions, encompassing Design, Engineering, Supply, Installation & Commissioning (I&C), and Maintenance of various types of Control Panels from conceptualization to completion.

Our company is engaged in the manufacturing of Automation Control Panels, with a focus on integrating Programmable Logic Controllers (PLCs), drive systems, switchgear, and sensors to streamline industrial automation processes and optimizing commissioning solutions for enhanced performance. These panels are meticulously designed and assembled to include components such as PLCs, drives, switchgears, sensors, and actuators. Each element is precisely wired to ensure seamless operation, efficient troubleshooting, and optimized commissioning of automated systems.

Functioning as a centralized hub, these panels manage and monitor industrial machinery, enhancing both performance and reliability. Our expertise lies in developing robust control solutions that serve a wide spectrum of industries, including Power, Water, Energy, Machine Tools, Infrastructure, Motor Management, Food & Beverages, HVAC, Chemicals & Pharmaceuticals, Automotive, and Process Industries. We are committed to ensuring operational efficiency, improved productivity, and long-term system sustainability.

Skytech Infinite Platform Limited is an ISO-certified company with a robust operating history of over 15 years. We are a technology-driven organization with a strong emphasis on quality, design, and product development, enabling us to deliver customized solutions tailored to our clients needs. Operating from a 10,000 sq. ft. in-house manufacturing facility, we are equipped to design, manufacture, and distribute a wide range of high-quality electrical panels and control systems. Our diverse product portfolio includes PCC Panels, MCC Panels, VFD Panels, APFC Panels, PLC Panels, and Control Desk Panels. We serve multiple industrial sectors, both in India and internationally, with a global footprint extending to countries such as Bhutan, Thailand, China, Singapore, and the USA.

At Skytech Infinite Platform Limited, we take pride in offering quality workmanship backed by a skilled and experienced team dedicated to engineering products that meet the highest industry standards. Our dedicated team of engineers are experts in designing and developing advanced solutions, which enable us to manufacture Techno Modular Design panels a distinctive approach that sets us apart from traditional welded panel manufacturers, with a strong focus on quality, flexibility, and durability. The Techno Modular Design is based on a 200 mm modular grid that allows panels to be configured, expanded, or re-arranged efficiently and supports layouts such as U-shape, L-shape, and back-to-back configurations. It enables multiple cable entry options and flexible busbar positioning, allowing adaptation to different switch room layouts. The system is compatible with leading circuit breaker brands and has undergone type testing to meet applicable safety and reliability standards. The panels are manufactured using steel treated with zirconium nano pretreatment and finished with RAL 7035 powder coating to enhance corrosion resistance. The modular construction provides structural strength while maintaining lower overall weight compared to traditional welded panels.

Our infrastructure is thoughtfully designed to foster productivity and collaboration. We are equipped with conference rooms and dedicated training facilities that support continuous learning and strategic planning. The office is structured into clearly defined departments including Marketing, Projects, Design, Accounts, and more- working cohesively to ensure seamless operations, effective communication, and timely project execution.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD

In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e. March 31, 2026 as disclosed in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION

1. COVID-19 like pandemic.
2. Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;
3. Any failure to comply with the financial and restrictive covenants under our financing arrangements;
4. Our ability to retain and hire key employees or maintain good relations with our workforce;
5. Impact of any reduction in sales of our services/products;
6. Rapid Technological advancement and inability to keep pace with the change;
7. Increased competition in industries/sector in which we operate;
8. General economic and business conditions in India and in the markets in which we operate and in the local, regional and national economies;
9. Changes in laws and regulations relating to the Sectors in which we operate;
10. Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;
11. Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;
12. Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition and
13. Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability.

SIGNIFICANT ACCOUNTING POLICIES:

Our significant accounting policies are described in the section entitled "Financial Statements as Restated" beginning from page 187 of the Red Herring Prospectus.

(The page number "1" appears at top; content is a continuation of Business Overview from Page 1 — no new table. The page begins mid-section with "Panels. We serve multiple industrial sectors..." and repeats the Business Overview paragraphs. No corrupt data — content is readable.)

Content on this page duplicates the business description found at the end of Page 1 (portfolio listing and international footprint). Note: this page appears to be a duplicate/continuation; no new financial data.

FINANCIAL KPIs OF THE COMPANY

Particulars	31-03-2026	31-03-2025	31-03-2024
Total Income	5,214.10	4,520.81	4,414.85
Growth (%)	15.34%	2.40%	25.58%
Revenue from Operation	5,164.50	4,514.01	4,412.85
EBITDA (Operating Profit)	664.66	612.68	308.72
EBITDA Margin (%)	12.87%	13.57%	7.00%
PAT	420.47	371.41	135.09
Growth (%)	13.21%	174.95%	-22.82%
PAT Margin (%)	8.14%	8.23%	3.06%
EPS (Basic & Diluted) - (As per end of Restated period)	6.12	5.40	21.61
EPS (Basic & Diluted) - (Post Bonus with retrospective effect)	6.12	5.40	1.96
Total Borrowings	925.45	539.06	389.68
Total Net Worth (TNW)	1,901.94	1,481.46	1,110.05
RONW (%)	22.11%	25.07%	12.17%
ROCE (%)	25.45%	33.10%	17.48%
Debt Equity Ratio (Total Borrowing/TNW)	0.49	0.36	0.35

SUMMARY OF THE RESULTS OF OPERATION

(? in lakhs except as otherwise mentioned)

Particulars	31-03-2026	% of Total Turnover	31-03-2025	% of Total Turnover	31-03-2024	% of Total Turnover
Income
Revenue from Operations	5,164.50	99.05%	4,514.01	99.85%	4,412.85	99.95%
Other Income	49.60	0.95%	6.80	0.15%	2.00	0.05%
Total Income	5,214.10	100.00%	4,520.81	100.00%	4,414.85	100.00%
Expenditure
Cost of Material Consumed	3,616.64	69.36%	2,959.80	65.47%	3,198.01	72.44%
Change in Inventories	-133.83	-2.57%	85.34	1.89%	43.65	0.99%
Employee Benefit Expenses	755.44	14.49%	637.84	14.11%	597.61	13.54%
Other Expenses	261.58	5.02%	218.36	4.83%	264.86	6.00%
Total Expenses	4,499.84	86.30%	3,901.33	86.30%	4,104.13	92.96%
Profit Before Interest, Depreciation and Tax	714.27	13.70%	619.48	13.70%	310.72	7.04%
Depreciation & Amortisation Expenses	59.56	1.14%	43.25	0.96%	48.49	1.10%
Profit Before Interest and Tax	654.70	12.56%	576.23	12.75%	262.23	5.94%
Financial Charges	68.22	1.31%	67.82	1.50%	58.70	1.33%
Profit before Taxation	586.49	11.25%	508.41	11.25%	203.53	4.61%
Provision for Taxation	176.91	3.39%	138.99	3.07%	69.86	1.58%
Provision for Deferred Tax	-10.90	-0.21%	(2.00)	-0.04%	(1.41)	-0.03%
Total	166.01	3.18%	136.99	3.03%	68.44	1.55%
Profit After Tax but Before Extraordinary Items	420.47	8.06%	371.41	8.22%	135.09	3.06%
Extraordinary Items	-	-	-	-	-	-
Net Profit after adjustments	420.47	8.06%	371.41	8.22%	135.09	3.06%
Net Profit Transferred to Balance Sheet	420.47	8.06%	371.41	8.22%	135.09	3.06%

In the Fiscal 2026, Fiscal 2025 and Fiscal 2024, we generated total income of 5,214.10 Lakhs, 4,520.81 Lakhs and 4,414.85 Lakhs respectively, EBITDA (operating profit) of 664.62 Lakhs, 612.56 Lakhs and 308.71 Lakhs respectively and net profit after tax of 420.47 Lakhs, 371.41 Lakhs and 135.09 Lakhs. We have reported Return on Net Worth of 22.11%, 25.07% and 12.17% for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively.

Revenue from operations grew from 4,412.85 Lakhs in FY 2023-24 to 5,164.50 Lakhs in FY 2025-26, marking an increase of 751.65 Lakhs (17.03% for the said period). Correspondingly, Profit After Tax (PAT) surged from 135.09 Lakhs to 420.47 Lakhs, as per the restated financial statements. This strong performance is attributable to the increase in operational volumes which has been a key factor driving the overall growth in both revenue and profitability. These factors are discussed in detail in this chapter.

Details of Revenue from Operations

Particulars	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
Revenue from Manufacturing Activities	4,052.48	78.47%	3,755.63	83.20%	3,646.62	82.64%
Revenue from Trading Activities	778.65	15.08%	452.61	10.03%	263.83	5.98%
Revenue from Service Activities	333.37	6.46%	305.77	6.77%	502.40	11.38%
Total	5,164.50	100.00%	4,514.01	100.00%	4,412.85	100.00%

Category-wise Revenue Bifurcation

Particulars	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
EPC Contract	4,126.21	79.90%	3,829.51	84.84%	3,967.37	89.90%
Supply of Products	769.96	14.91%	452.61	10.03%	263.83	5.98%
Services - AMC & Migration	268.34	5.20%	231.89	5.14%	181.65	4.12%
Total	5,164.50	100.00%	4,514.01	100.00%	4,412.85	100.00%

Details of Geography-wise Revenue

Particulars	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
Domestic	5,160.16	99.92%	4,486.44	99.39%	4,404.77	99.82%
Exports	4.34	0.08%	27.57	0.61%	8.08	0.18%
Total	5,164.50	100.00%	4,514.01	100.00%	4,412.85	100.00%

Details of State-wise Turnover

State	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
Chandigarh	3.93	0.08%	2.36	0.05%	4.84	0.11%
Kerala	5.60	0.11%	11.41	0.25%	8.16	0.18%
Maharashtra	337.88	6.54%	48.61	1.08%	125.67	2.85%
Odisha	6.44	0.12%	1.87	0.04%	1.72	0.04%
Tamil Nadu	459.08	8.89%	452.24	10.02%	865.08	19.60%
Telangana	189.66	3.67%	138.61	3.07%	84.12	1.91%
Andhra Pradesh	173.59	3.36%	125.09	2.77%	358.00	8.11%
Delhi	2.42	0.05%	579.41	12.84%	84.62	1.92%
Goa	23.40	0.45%	7.04	0.16%	0.15	0.00%
Gujarat	23.87	0.46%	35.65	0.79%	78.15	1.77%
Haryana	26.61	0.52%	35.87	0.79%	12.43	0.28%
Himachal Pradesh	7.83	0.15%	1.90	0.04%	5.69	0.13%
Karnataka	3,893.67	75.39%	2,849.56	63.13%	2,574.40	58.34%
Puducherry	-	0.00%	136.18	3.02%	70.00	1.59%
Rajasthan	1.71	0.03%	5.35	0.12%	33.76	0.77%

(The page header shows "2020-2021" — this appears to be a stray/erroneous artifact. The table is a continuation of State-wise turnover and other tables.)

State	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
Uttar Pradesh	0.52	0.01%	0.35	0.01%	19.32	0.44%
West Bengal	3.78	0.07%	54.96	1.22%	78.66	1.78%
Madhya Pradesh	0.06	0.00%	-	-	-	-
Chhattisgarh	-	0.00%	-	-	-	-
Punjab	-	0.00%	-	-	-	-
Total	5,160.05	99.91%	4,486.44	99.39%	4,404.77	99.82%

Details of Country-wise Turnover

Country	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
India	5,160.16	99.91%	4,486.44	99.39%	4,404.77	99.82%
Bhutan	0.89	0.02%	15.50	0.34%	3.57	0.08%
Thailand	-	-	-	-	4.51	0.10%
China	-	-	0.08	0.00%	-	-
Singapore	0.68	0.01%	11.92	0.26%	-	-
USA	1.38	0.03%	-	-	-	-
Bangladesh	1.50	0.03%	0.08	0.00%	-	-
Total of Revenue	5,164.59	100.00%	4,514.01	100.00%	4,412.85	100.00%

Details of Sector-wise Turnover

Particulars	March 31, 2026 (? in lakhs)	% of Total Turnover	March 31, 2025 (? in lakhs)	% of Total Turnover	March 31, 2024 (? in lakhs)	% of Total Turnover
Government	262.72	5.09%	964.67	21.37%	424.14	9.61%
Private	4,901.78	94.91%	3,549.34	78.63%	3,988.71	90.39%
Total of Revenue	5,164.50	100.00%	4,514.01	100.00%	4,412.85	100.00%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

Total Income — Our total income comprises of Revenue from Operations and Other Income.

Revenue from Operations — Our operational revenue is primarily generated from the EPC Contracts, Sales of Services - AMC & Others and Sale of products.

Other Income — Our other income comprises of Interest Income and Other non-operating income.

Expenditure — Our total expenditure primarily consists of Cost of Material Consumed, Change in Inventories, Employee Benefits Expenses and Other expenses.

Cost of Material Consumed — Cost of Material Consumed consists of Opening Stock, purchases of raw materials and closing stock.

Changes in Inventories — Changes in Inventories comprises of difference in opening and closing balance of Finished Goods & WIP.

Employee Benefit Expenses — (continues on Page 6)

Employee benefit expenses comprise of Salaries and wages, Staff welfare expenses and Contributions to provident and other funds.

Financial Charges — Financial Charges comprises of Interest Expense on Term Loans, Overdraft, Others, Net gain/loss on foreign currency transactions and translation.

Depreciation and Amortization Expenses — Depreciation and Amortization Expenses comprises of depreciation on the Tangible/Intangible assets of the company.

Other Expenses — Other Expenses comprises of Power, Water and Fuel, Insurance, Freight and forwarding, Communication expenses, Rates & Taxes, Bad Debts, Legal and professional charges, Payments to auditor (refer note 32), Donations and contributions, Rent, Miscellaneous expenses, Travelling and conveyance, Printing and stationery, Hire charges, Office expenses, Building Repairs & Maintenance, Computer Repairs & Maintenance, Vehicle Repairs & Maintenance, Late Delivery Charges, Loss of derecognition of fixed asset.

Provision for Taxation — The provision for current tax is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2026 WITH FISCAL 2025

Particulars	31-03-2026 (? Lakhs)	% of Total Income	31-03-2025 (? Lakhs)	% of Total Income	Total Increase/(Decrease) (? Lakhs)	% Increase/(Decrease)	Reasons/Justification
Income
Revenue from Operations	5,164.50	99.05%	4,514.01	99.85%	650.49	14.41%	Refer Note-1
Other Income	49.60	0.95%	6.80	0.15%	42.80	629.27%	Refer Note-2
Total Income	5,214.10	100.00%	4,520.81	100.00%	693.29	15.34%	Refer Note-3
Expenditure
Cost of Material Consumed	3,616.64	69.36%	2,959.80	65.47%	656.84	22.19%	Refer Note-4
Change in Inventories	(133.83)	-2.57%	85.34	1.89%	(219.16)	-256.83%	Refer Note-4a
Employee Benefit Expenses	755.44	14.49%	637.84	14.11%	117.60	18.44%	Refer Note-5
Other Expenses	261.58	5.02%	218.36	4.83%	43.23	19.80%	Refer Note-6
Total Expenses	4,499.84	86.30%	3,901.33	86.30%	598.50	15.34%
Profit/(Loss) Before Interest, Depreciation, Exceptional & Extraordinary Items and Tax	714.27	13.70%	619.48	13.70%	94.78	15.30%
Depreciation & Amortisation Expenses	59.56	1.14%	43.25	0.96%	16.31	37.70%	Refer Note-7
Profit/(Loss) Before Interest, Exceptional & Extraordinary Items and Tax	654.70	12.56%	576.23	12.75%	78.48	13.62%
Financial Charges	68.22	1.31%	67.82	1.50%	0.39	0.58%	Refer Note-8
Profit/(Loss) before Exceptional & Extraordinary Items and Tax	586.49	11.25%	508.41	11.25%	78.08	15.36%
Exceptional Item	-	-	-	-	-	-
Extraordinary Item	-	-	-	-	-	-

Based on the image provided, here is the extracted table and text:

Particulars	Amount (? in lakhs)	% of Total Income	Amount (? in lakhs)	% of Total Income	Amount (? in lakhs)	% of Total Income	Remarks
Profit before Taxation	586.49	11.25%	508.41	11.25%	78.08	15.36%	Refer Note-9
Provision for Taxation	176.91	3.39%	138.99	3.07%	37.92	27.28%
Provision for Deferred Tax	(10.90)	-0.21%	(2.00)	-0.04%	(8.90)	445.58%
Total	166.01	3.18%	136.99	3.03%	29.02	21.19%	Refer Note-10
Profit After Tax	420.47	8.06%	371.41	8.22%	49.06	13.21%	Refer Note-11

(Note: The column headers for the three financial years are cut off at the top of the image, but based on the context of previous pages, they represent 31-03-2026, 31-03-2025, and the Differential/Increase.)

Note:1 -
Revenue from Operations increased by ?650.49 lakh from ?4,514.01 lakhs in Fiscal 2025 to ?5,164.50 lakhs in Fiscal 2026. The increase was primarily attributable to the acquisition of new contracts and higher order volumes from existing customers, resulting in increased revenues from the Companys core manufacturing business. The growth was further supported by increased contribution from key geographical markets, particularly Karnataka. In addition, increased revenue generated from trading activities during Fiscal 2026 also contributed to the overall increase in Revenue from Operations.

The increase was primarily attributable to the acquisition of new contracts and higher order volumes from existing customers, resulting in increased revenues from the Companys core manufacturing business. The growth was further supported by increased contribution from key geographical markets, particularly Karnataka. In addition, increased revenue generated from trading activities during Fiscal 2026 also contributed to the overall increase in Revenue from Operations.

Note 2 — The increase in other income is primarily attributable to the increase in interest income and gain on sale of PPE during the current fiscal.

Note 3 — The increase in total income was mainly due to increase in Revenue from Operation during the current year.

Note 4 — The increase in Cost of Materials Consumed during the current fiscal was primarily due to the higher purchases corresponding with the increase in Revenue from Operations and overall business activity during the fiscal.

Note 4a — The movement reflects changes in production levels, procurement patterns, sales volume, and inventory management practices during the years. Inventory levels fluctuate based on project execution schedules.

Note 5 — This increase was mainly due to increase in overall Salaries paid during the fiscal year and increase in actuarial provision due to change in labour laws.

Note 6 — Other Expenses increased, primarily due to higher legal and professional charges, increased rent, CSR expenditure, and sitting fees paid to directors, along with an increase in other administrative expenses associated with the growth of the Companys operations.

Note 7 — This increase was due to the depreciation on additional assets purchased during the year.

Note 8 — This increase was mainly due to increase in interest expenses as per utilizations.

Note 9 — Despite an increase in material consumption costs, employee benefit expenses, depreciation and other operating expenses associated with higher business activity, the Companys profitability improved during Fiscal 2026, primarily due to growth in Revenue from Operations and a significant increase in Other Income, which positively contributed to Profit Before Tax.

Note 10 — This increase was mainly due to increase in Profit before Tax as mentioned above.

Note 11 — This increase was mainly due to increase in Profit before Tax as mentioned above.

Detailed rationale for marginal increase in total income but significant increase in PAT in FY 2026

Particulars	31-3-2026	31-3-2025	Differential	Remarks
(This table is incomplete on Page 7 — it continues on Page 8)

2026 total revenue increased from 4,520.81 lakhs in FY 2025 to 5,214.10 lakhs, registering a growth of 15.34% driven by new contracts secured during the year and higher offtake from existing customers. Profit After Tax increased from 371.41 lakhs (8.22% of total revenue) in FY 2025 to 420.47 lakhs (8.06% of total revenue) in FY 2026, an increase of 13.21% in absolute terms.

Unlike FY 2025, where the improvement in profitability arose principally from a reduction in cost ratios, the growth in FY 2026 has been driven primarily by an expansion in the scale of operations, with the net margin being broadly maintained at the previous years level. The movement is explained by the following factors:

Revenue from Operations grew by 14.41% from 4,514.01 lakhs to 5,164.50 lakhs. Sale of products increased by 12.82% (from 4,282.12 lakhs to 4,831.21 lakhs) and sale of services increased by 43.72% (from 231.89 lakhs to 333.29 lakhs). Cost of Material Consumed and Changes in Inventories: This cost improved further from 67.36% of total revenue in FY 2025 to 66.80% in FY 2026, a reduction of 0.56%. The Company has continued to benefit from the progressive shift in procurement of HMI panels from Emerson Automation Solutions Intelligent Platforms (P) Ltd. to Mitsubishi Electric India Private Limited, which commenced in FY 2025 and was substantially completed during FY 2026. Employee Benefit Expenses: These increased from 14.11% to 14.49% of total revenue, an increase of 0.38%. Of the total increase of 117.60 lakhs, 39.25 lakhs is attributable to higher actuarial provisioning towards gratuity (18.05 lakhs to 41.53 lakhs) and leave encashment (Nil to 15.78 lakhs) consequent to the revised labour codes, with the balance representing annual increments and additions to the workforce. Other Expenses: These increased from 4.83% to 5.02% of total revenue, an increase of 0.19%, aggregating 43.23 lakhs. The increase is primarily on account of costs associated with the proposed listing and the Companys transition to a public limited company - legal and professional charges (5.52 lakhs to 20.68 lakhs), payments to auditors (6.25 lakhs to 13.25 lakhs), CSR expenditure (Nil to 6.14 lakhs) and directors sitting fees (Nil to 2.40 lakhs) - together with higher rent on additional space taken during the year (37.27 lakhs to 53.79 lakhs). These were partly offset by lower travelling and conveyance (72.37 lakhs to 53.87 lakhs) and the non-recurrence of stamp duty of 11.65 lakhs incurred in FY 2025 on increase in authorised capital. Bad debts remained at a normalised level of 4.02 lakhs (FY 2025: 4.53 lakhs).

Depreciation Expenses: These increased from 0.96% to 1.14% of total revenue, on account of assets added during the year; the net block increased from 579.20 lakhs to 629.20 lakhs notwithstanding the depreciation charge of 59.56 lakhs. Finance Costs: These remained flat in absolute terms at 68.22 lakhs (FY 2025: 67.82 lakhs) and consequently declined from 1.50% to 1.31% of total revenue.

Accordingly, total expenses increased marginally by 0.15% of total revenue, from 91.78% in FY 2025 to 91.94% in FY 2026, the reduction in material and finance cost ratios having been offset by higher employee, other and depreciation expenses. Profit After Tax consequently increased by 49.06 lakhs, or 13.21%, over the previous year.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2025 WITH FISCAL 2024

Particulars	31-03-2025 (? Lakhs)	% of Total Income	31-03-2024 (? Lakhs)	% of Total Income	Total Increase/(Decrease) (? Lakhs)	% Increase/(Decrease)	Reasons/Justification
Income
Revenue from Operations	4,514.01	99.85%	4,412.85	99.95%	101.16	2.29%	Refer Note-1
Other Income	6.80	0.15%	2.00	0.05%	4.80	239.92%	Refer Note-2
Total Income	4,520.81	100.00%	4,414.85	100.00%	105.96	2.40%	Refer Note-3
Expenditure
Cost of Material Consumed	2,959.80	65.47%	3,198.01	72.44%	(238.20)	-7.45%	Refer Note-4
Change in Inventories	85.34	1.89%	43.65	0.99%	41.68	95.48%
Employee Benefit Expenses	637.84	14.11%	597.61	13.54%	40.23	6.73%	Refer Note-5
Other Expenses	218.36	4.83%	264.86	6.00%	(46.51)	-17.56%	Refer Note-6
Total Expenses	3,901.33	86.30%	4,104.13	92.96%	(202.80)	-4.94%
Profit/(Loss) Before Interest, Depreciation, Exceptional & Extraordinary Items and Tax	619.48	13.70%	310.72	7.04%	308.76	99.37%
Depreciation & Amortisation Expenses	43.25	0.96%	48.49	1.10%	(5.23)	-10.80%	Refer Note-7
Profit/(Loss) Before Interest, Exceptional & Extraordinary Items and Tax	576.23	12.75%	262.23	5.94%	314.00	119.74%
Financial Charges	67.82	1.50%	58.70	1.33%	9.12	15.54%	Refer Note-8
Profit/(Loss) before Exceptional & Extraordinary Items and Tax	508.41	11.25%	203.53	4.61%	304.88	149.80%
Exceptional Item	-	-	-	-	-	-
Extraordinary Item	-	-	-	-	-	-
Profit before Taxation	508.41	11.25%	203.53	4.61%	304.88	149.80%	Refer Note-9
Provision for Taxation	138.99	3.07%	69.86	1.58%	69.13	98.96%
Provision for Deferred Tax	(2.00)	-0.04%	(1.41)	-0.03%	(0.58)	41.27%
Total	136.99	3.03%	68.44	1.55%	68.55	100.16%	Refer Note-10
Profit After Tax	371.41	8.22%	135.09	3.06%	236.33	174.95%	Refer Note-11

Note 1 — The increase in Revenue from Operations during the current fiscal was primarily attributable to higher service revenue as compared to the previous year. In addition, a marginal increase in export sales of services further contributed to the overall growth in revenues.

Note 2 — The increase in other income is primarily attributable to the increase in interest income during the current fiscal.

Note 3 — The increase in total income was mainly due to increase in Revenue from Operation during the current year.

Note 4 — The decline in Cost of Materials Consumed during the current fiscal was primarily due to the lower purchases, utilization of opening stock and improved procurement efficiency from alternate suppliers during the fiscal year.

Note 5 — This increase was mainly due to increase in overall Salaries paid during the fiscal year.

Note 6 — The decrease in Other Expenses was mainly due to decrease in bad debts in comparison to previous fiscal.

Note 7 — This decline in depreciation in the current year was due to the derecognition of assets during the fiscal year.

Note 8 — This increase was mainly due to increase in interest expenses as per utilization.

Note 9 — The increase in Profit Before Tax (PBT) is primarily due to higher revenue and improved margins. Revenue earned from new projects came with a higher gross profit margin %, compared to the companys average margin. In addition, the service-type revenue increased during the current fiscal as compared to the last year which again resulted in higher margins and increased overall profitability. Further, reduced cost of materials consumed and other expenses impacted PBT positively. Furthermore, the shift from using different materials from different suppliers during the year contributed to improved profitability. Collectively, these factors explain the significant increase in PBT compared to the prior year. Details are as follows:

During FY 2024-25, the Company received two government orders from Karnataka Power Corporation Limited (KPCL) aggregating to 1,181.88 lakhs (incl. GST). One order pertained to renovation and modification of the relay logic system and electrical system of Stacker/Reclaimer-1 at the Coal Handling Plant (CHP) Stage-1 of Raichur Thermal Power Station (RTPS), with an order value of 735.00 lakhs. The second order, valued at 446.88 lakhs, related to Repair & Maintenance work of existing relay based control systems of RTPS CHP equipment with latest version PLC based control systems and establishment of centralized common control room at CHP-2 control room. These KPCL projects compared to the Companys other projects during the year, which resulted in relatively higher gross profit margins in FY 2024-25.

The comparative gross profit margins from KPCL projects and other projects executed during the year are set out below:

Particulars	Revenue booked by Syttech (? in lakhs)	Cost to the Company (? in lakhs)	Gross Profit (? in lakhs)	Gross Profit Margin (in %)
Revenue from KPCL Project (Coal Handling Plant)	825.49	464.03	361.46	43.79%
Revenue from remaining Projects	3,688.52	2,581.11	1,107.41	30.02%
Total	4,514.01	3,045.14	1,468.87	32.54%

As certified by our statutory auditor having peer review certificate M/s. Ranga & Co, Chartered Accountants vide their examination report dated December 23, 2025.

The comparative gross profit margins from Manufacturing, Trading and Service Activities during the year are set out below:

Products	FY 2024-25 Amount (? in lakhs)	% of Turnover	Gross Profit Margin (in %)	FY 2023-24 Amount (? in lakhs)	% of Turnover	Gross Profit Margin in (%)
Revenue from Manufacturing Activities	3,755.63	83.20%	30.90%	3,646.62	82.64%	20.30%
Revenue from Trading Activities	452.61	10.03%	22.17%	263.83	5.98%	15.59%
Revenue from Service Activities	305.77	6.77%	67.95%	502.40	11.38%	77.55%
Total	4,514.01	100.00%	32.54%	4,412.85	100.00%	26.54%

As certified by our statutory auditor having peer review certificate M/s. Ranga & Co, Chartered Accountants vide their examination report dated December 23, 2025.

Note 10 — This increase was mainly due to increase in Profit before Tax as mentioned above.

Note 11 — This increase was mainly due to increase in Profit before Tax as mentioned above.

Detailed rationale for marginal increase in total income but significant increase in PAT in FY 2025

Particulars	31-03-2025 Amount in Lakhs	% of Total Revenue	31-03-2024 Amount in Lakhs	% of Total Revenue	Differential % of Total Revenue	Remarks
Total Revenue	4,520.81	4,414.85	2.40%			Total revenue increased by 2.40% due to overall growth in demand
Expenditure
Cost of Material Consumed and Changes in Inventories	3,045.14	67.36%	3,241.66	73.43%	-6.07%	Cost decreased by 6.07% due to change in product mix, supplier and improved procurement efficiency and due to utilization of opening Inventory
Employee Benefit Expenses	637.84	14.11%	597.61	13.54%	0.57%	Cost increased by 0.57% due to hike in employee cost
Other Expenses	218.36	4.83%	264.86	6.00%	-1.17%	Cost decreased by 1.17% mainly due to reduction in bad debts in 2025
Depreciation Expenses	43.25	0.96%	48.49	1.10%	-0.14%	Cost decreased by 0.14% due to Depreciated value of assets
Financial Charges	67.82	1.50%	58.70	1.33%	0.17%	Cost increased by 0.17% due to More utilisation from borrowings
Tax Expenses	136.99	3.03%	68.44	1.55%	1.48%	Cost increased by 1.48% as per applicable tax provisions
Total Expenses	4,149.40	91.78%	4,279.76	96.94%	-5.16%	Net impact
Profit After Tax	371.41	8.22%	135.09	3.06%	5.16%	overall Cost decreased and Profit increased by 5.16% in FY 2025

In FY 2025, total revenue increased marginally from 4,414.85 lakhs in FY 2024 to 4,520.81 lakhs, driven by steady demand across projects. However, Profit After Tax increased from 135.09 lakhs (3.06% of total revenue) in FY 2024 to 371.41 lakhs (8.22% of total revenue) in FY 2025.

The improvement in profitability was primarily due to the following factors:

Cost of Material Consumed and Changes in Inventories: This cost declined substantially from 73.43% of total revenue in FY 2024 to 67.36% in FY 2025, resulting in a reduction of 6.07%. The improvement was driven by a favourable change in product mix, improved procurement efficiency, utilisation of opening inventory, and the transition to more cost-efficient suppliers for HMI panels.

The Company has progressively shifted procurement of HMI panels from Emerson Automation Solutions Intelligent Platforms (P) Ltd. to Mitsubishi Electric India Private Limited. This transition has resulted in improved pricing and procurement efficiency and has positively impacted material costs, particularly in FY 2025, as supported by procurement data provided in Point No. 11 and Exhibit-I of our earlier submission dated 20/11/2025.

Other Expenses: Other expenses reduced from 6.00% of total revenue in FY 2024 to 4.83% in FY 2025, primarily due to a lower provision for bad debts during the year.

While employee benefit expenses and finance costs increased marginally due to workforce expansion and higher utilisation of borrowings, these increases were more than offset by the reduction in material costs and other expenses. As a result, total expenses declined by 5.16% of total revenue, leading to a corresponding increase in Profit After Tax.

AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE IS GIVEN HEREUNDER:

1. Unusual or infrequent events or transactions
Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 24 in the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Expected Future changes in relationship between costs and revenues
Our Companys future costs and revenues will be determined by demand/supply situation, inflation, Government Policies and Taxation and Currency fluctuations.

5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices
Changes in revenue in the last financial years are as explained in the part "Comparison of the Financial Performance" of above.

6. Total turnover of each major industry segment in which our Company operates
The Company is engaged in the manufacturing of Automation Control Panels, with a focus on integrating Programmable Logic Controllers (PLCs), drive systems, switchgear, and sensors to streamline industrial automation processes and optimizing commissioning solutions for enhanced performance. These panels are meticulously designed and assembled to include components such as PLCs, drives, switchgears, sensors, and actuators. Each element is precisely wired to ensure seamless operation, efficient troubleshooting, and optimized commissioning of automated systems. Therefore, there are no separate reportable segments.

7. Status of any publicly announced New Products or Business Segment
Our Company has not announced any new product other than disclosed in this Red Herring Prospectus.

8. Seasonality of business
Our business is not seasonal in nature.

9. Competitive conditions
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 100 and 121 respectively of the Red Herring Prospectus/ Prospectus.

10. Details of material developments after the date of last balance sheet i.e. March 31, 2026
Except as mentioned in this Red Herring Prospectus/ Red Herring Prospectus/ Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.