Softtech Engineers Ltd Management Discussions

Management Discussion and Analysis Report

About This Report

This Management Discussion & Analysis Report (MD&A) has been prepared in accordance with Regulation 34(2)(e) read with Schedule V (Part B) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), and forms Annexure A to the Boards Report of SoftTech Engineers Limited ("SoftTech", "SEL" or "the Company") for the financial year ended 31 March 2026.

The financial information presented is drawn from the standalone and consolidated financial statements of the Company prepared under the applicable accounting standards notified under Section 133 of the Companies Act, 2013. Unless otherwise stated, all figures are presented on a standalone basis and in Indian Rupees (Rs.) in crore. One crore equals ten million. The financial year referenced as "FY 2025-26" or "FY26" is the twelve-month period from 1 April 2025 to 31 March 2026; "FY 2024-25" or "FY25" refers to the corresponding prior period.

Important cautionary note on forward-looking statements

This report contains forward-looking statements that involve inherent risks and uncertainties. Actual results may differ materially from those expressed or implied, on account of factors including global and domestic economic conditions, geopolitical developments, regulatory and policy changes, technology disruption, competitive intensity, foreign-exchange movements and the timing of government procurement and payment cycles. These statements are based on assumptions and expectations of future events that may not prove accurate. SoftTech Engineers Limited assumes no obligation to publicly amend, modify or update any forward-looking statement in the light of subsequent developments, information or events.

1. Overview of the Company

1.1 The Company

SoftTech Engineers Limited was incorporated in 1996 by Mr. Vijay Gupta, Master of Technology (M.Tech.) from IIT Mumbai , who serves as the Companys Chairman and Managing Director. The Company is headquartered at SoftTech Towers, S NO 1/1A/7 8 15 16 17, Plot No. BCD 1-Baner, Baner Road, Baner Gaon, Pune-411045, Maharashtra, India, with a further Indian location at Surat. Its equity shares are listed on the National Stock Exchange of India Limited (Symbol: SOFTTECH) and on BSE Limited (Scrip code: 543470).

Over three decades, SoftTech has evolved from an engineering-software company to a complete technology platform focused on the built environment. SoftTech develops and operates path breaking digital products and solutions for the entire Architectural, Engineering, Construction and Operations (AECO) industry ecosystem including government and urban-governance authorities, developers, architects, consultants, construction and infrastructure enterprises.

Its portfolio spans planning and design review, approvals and workflows, infrastructure and construction management, development-rights transactions, digital twins for operational simulations, safety and sustainability all powered through AI/ML. All the applications are run under a common data environment support by CIVIT platform connecting people, processes and data seamlessly across all application products.

SoftTechs strength lies in combining engineering domain knowledge, workflow automation, BIM, GIS, AI/ML, digital twins, analytics and implementation capability. Regulatory automation is an important part of this foundation, and the Companys broader proposition is to digitise and connect complex processes across the lifecycle of buildings, infrastructure and urban assets.

This accumulated capability supports SoftTechs transition towards a more scalable, platform-led model focused on connected digital solutions, recurring and transaction-linked revenues, AI-enabled decision support and expansion into adjacent built-environment and industrial applications.

Here is a glimpse of our company landscape :

1.2 Thirty years in outline

Over three decades, SoftTech has progressed from engineering software to regulatory automation, CAD/BIM-enabled solutions, digital platforms and increasingly AI-led, connected technologies. The timeline captures the key milestones in this journey, including product evolution, geographic expansion, public listing, international growth and the Companys transition towards a broader platform-led model.

1.3 Why SoftTech stands apart - strengths and achievements

The Companys competitive position rests on assets that were accumulated rather than purchased, and which are therefore difficult for a competitor to acquire quickly at any price.

What makes the Company different

• Regulation-centric foundation-Three decades of codifying building regulations across 18 or more states and more than 1,500 urban local bodies, producing what management believes to be the most comprehensive compliance dataset in the Indian market.

• Lifecycle coverage-Competitors typically address one stage of the asset lifecycle. The Civit Suite spans planning, permitting, construction, infrastructure operation and sustainability under a single data architecture.

• Innovation beyond products-Through AmpliNXT, the Companys corporate venture programme, SoftTech incubates next-generation technology start-ups in the AECO domain.

• Policy-level standing-The Companys systems contributed to Indias improvement in World Bank ease-of-doing-business performance for construction permits, positioning it as a policy enabler rather than a vendor.

• Sustainability embedded rather than appended-Through CivitSUSTAIN, sustainability and digital twin-based water and energy management are built into the core offering rather than sold as a separate module.

• Alignment-Technology partnerships with Autodesk, Dassault, Esri, SAP, Microsoft and Mitsubishi, combined with local regulatory depth.

1.4 Strategic pillars

The Companys strategy is anchored on five pillars, which together explain both the design of the product suite and the direction of the commercial model.

Pillar	What it means in practice
Platform-centric architecture	Lifecycle management from planning through permitting, building and operations, on a shared CivicCore data environment. Investment in the common layer benefits every product simultaneously.
Recurring revenue focus	Transition from one-time licensing to SaaS subscription, annual maintenance and pay-per-use transaction models, improving revenue predictability and shortening the collection cycle.
Domain and technology fusion	Three decades of AECO domain knowledge combined with artificial intelligence, geographic information systems and building information modelling-neither capability alone is sufficient in a regulated market.
Global and local scalability	A modular rule engine adaptable to city, state and national regulation across jurisdictions, so that entering a new market is a configuration exercise rather than a rebuild.
Stakeholder integration	A single system serving governments, urban local bodies, contractors, architects, developers and citizens-each with a different interface onto the same regulatory intelligence.

2. Economic and Industry Overview

This section covers only those indicators, programmes and technologies bearing on the market the Company addresses; aggregates describing construction or information technology at large have been excluded.

2.1 How demand for the Companys platforms is formed

The demand for Civit Products is derived, and forms in four stages:

1. Capital formation-construction and infrastructure investment creates built assets.

2. Regulatory events-each asset generates statutory events: plan scrutiny, building permission, plinth and completion checks, occupancy, transfer of development rights, operations and handover.

3. Digitisation mandate-governments convert those events to digital, rule-based processing, generally under a reform or funding-linked mandate rather than at a single authoritys discretion.

4. Platform procurement-the authority procures a platform, increasingly on subscription and at State rather than city level.

Construction volume becomes addressable revenue only where stage three compels digitisation. Policy, not sector growth, is the binding constraint.

The above figure sets out two different things side by side. The left panel shows how large each market is, narrowing from global construction output of approximately USD 17.3 trillion in 2026, through technology spend in construction and infrastructure at approximately USD 164 billion, to AEC software at approximately USD 14.2 billion and permitting and licensing software at approximately USD 3.8 billion, the Companys founding category. Each layer is a narrower slice of spending than the one above it, and it is these lower layers, rather than the headline construction figure, in which the Company actually competes.

The right panel shows how fast each of those markets is growing, measured as average growth per year in the size of the market itself. The segments the Company addresses are growing between 1.6 and 4.6 times faster than construction output: artificial intelligence in construction at approximately 26.9% a year, digital twins at 17.0%, AECO software at 15.5% and permitting software at 9.5%, against 5.8% for global construction output. India is shown separately because it grows faster than the world average, with construction technology spend rising at approximately 10.5% a year against 7.9% globally. Read together, the two panels describe the Companys position: a smaller but materially faster-growing layer above construction, in the geography where that layer is growing fastest.

2.2 Global demand environment

Construction is among the least digitised of the major sectors, and that gap defines the Companys opportunity. Global construction output stands at approximately USD 17.3 trillion in 2026 and is projected to reach USD 21.7 trillion by 2030, growing at 5.8% a year-steady, but slower than the technology layer forming above it. Spending on construction and infrastructure technology is projected to rise from approximately USD 164 billion to USD 325 billion by 2036, a rate of 7.9% a year, as digitalisation, BIM, cloud delivery and artificial intelligence are adopted across the sector. Narrowing further, AEC software is projected to grow from approximately USD 14.2 billion to USD 39.1 billion by 2033, at 15.5% a year, driven by design automation, digital twins and lifecycle solutions. Permitting and licensing software, the Companys founding category, is projected to grow from approximately USD 3.8 billion to USD 8.6 billion by 2034, at 9.5% a year, supported by regulatory digitisation, smart-city programmes and e-governance mandates.

The pattern matters more than any single figure. At each level the market becomes smaller but faster-growing, and the segments the Company addresses are compounding at between one- and-a-half and nearly three times the rate of construction activity itself. Demand in the permitting layer also behaves differently from the rest: it is procured by public authorities rather than contractors, so it follows public budgets and reform mandates rather than the construction cycle, and once deployed the system operates as a statutory record that is renewed rather than replaced.

Mapped to the Companys portfolio: permitting and plan scrutiny (CivitPERMIT, CivitTWIN, CivitPLAN, RuleBuddy PlanAssist); infrastructure lifecycle and works management(CivitINFRA); digital twin and immersive (CivitSUSTAIN, CivitMETAVERSE: development-rights transactions (CivitTDRx); construction management (CivitBUILD); and applied artificial intelligence across all of them (CivitAI), the fastest-growing segment addressed at approximately 26.9% compound annual growth.

2.3 Indian economic and urban environment

India remained the fastest-growing major economy through the reporting period. Real gross domestic product is estimated to have grown 7.4% in FY 2025-26 on the National Statistics Office first advance estimates published in January 2026; the International Monetary Fund projects approximately 7.3% for FY 2025-26 and 6.4% for FY 2026-27. Having overtaken Japan to become the worlds fourth-largest economy, India is projected to become the third- largest by approximately 2030.

The Union Budget as the Companys leading indicator

The Union Budget for 2026-27 set capital expenditure at Rs. 12.2 lakh crore, the highest ever, against total expenditure of Rs. 53.5 lakh crore-close to one rupee in every four that the Union Government spends is now capital in nature. Effective capital expenditure, which adds grants-in-aid to States for the creation of capital assets, is Rs. 17.15 lakh crore, or 4.4% of gross domestic product. Two features of this allocation matter more to the Company than its headline size.

• Its persistence. Budgeted capital expenditure has risen from Rs. 5.54 lakh crore in FY 202122 to Rs. 12.2 lakh crore in FY 2026-27-2.2 times in five years, a compound annual rate of approximately 17.1%-sustained across successive Budgets presented under materially different fiscal conditions (Figure 3). For a company selling multi-year platform contracts to public authorities, the consistency of the allocation matters more than its level in any single year, because it is what allows an authority to commit to a subscription beyond its current administrative term. [10,19]

• Its composition. Effective capital expenditure exceeds the headline figure because it includes grants to States for asset creation. Permitting, works-management and asset systems are procured at State and municipal level, not at Union level. The difference between Rs. 12.2 lakh crore and Rs. 17.15 lakh crore is therefore the portion of the allocation that flows closest to the Companys actual customers.

India-the demand engine for the Companys platforms

Construction, real estate and the urban base

The Indian construction industry reached approximately USD 1.21 trillion in 2025 and is projected to reach USD 2.13 trillion by 2030, a compound annual rate of approximately 12% (Figure 4). Construction gross value added expanded 7.6% and 7.2% in the first two quarters of FY 2025-26, following 9.4% in FY 2024-25; the sector employs approximately 71 million people and is projected to exceed 100 million by 2030. Real estate accounts for approximately 7% of gross domestic product and 18% of national employment, and is projected to contribute approximately 15% of gross domestic product with a market size of USD 5 trillion by 2047.

Beneath these values sits the volume. Indias towns and cities are projected to house approximately 600 million people, or 40% of the population, by 2036, contributing close to 70% of national output. Growth is fastest in tier-two and tier-three cities, and this is the commercially decisive fact for the Company: those urban local bodies represent the largest volume of unpenetrated permitting authorities in India; they are the least able to fund discretionary technology from their own revenues; and they are precisely the tier to which the Urban Challenge Fund and its Credit Repayment Guarantee Scheme have been extended. The constraint on converting them has been the Companys cost of entering each jurisdiction.

2.4 Structural trends in the Companys market

• From licence to subscription. Public authorities are moving from capital to operating budgets; cloud already accounts for the majority of revenue in the global permitting software segment.

• From grant-based to reform-linked funding. Central funds are increasingly released against demonstrated governance and digital reform, shifting the Companys proposition from efficiency to eligibility. This is the material change of the reporting period.

• Consolidating procurement. Tendering is moving from city-by-city to State-level and programmed-level frameworks, favoring vendors able to demonstrate multi-jurisdiction deployment.

• An expanding compliance perimeter. Regulation is extending from zoning, setbacks, fire and structure toward energy, embodied carbon, waste and water-enlarging the rule base rather than merely digitising it.

• From point tools to platform suites. Authorities increasingly procure integrated suites on shared data, favouring a single common architecture across products.

2.5 Regulatory developments and government programmes

Public programmes generating sector demand

The change in the character of this demand matters more than the change in its scale. Under the grant-based model that prevailed through the Smart Cities Mission period, a municipalitys decision to procure a permitting or works-management platform competed against every other claim on a constrained budget, and the proposition rested on efficiency. Under a reform- linked model, digital and governance reform is a qualifying condition for a substantially larger pool of central assistance and market finance, and the proposition moves from improving a process the authority already performs to enabling access to funding it cannot otherwise obtain. Management regards this as the most durable of the demand drivers described in this section, because it is embedded in the fiscal architecture rather than in a time-bound mission.

Alongside these, the National Infrastructure and Monetisation Pipelines sustain demand for CivitINFRA and linear-infrastructure twins, RERA raises the developer-side compliance burden supporting CivitPLAN, and Digital India remains the framework within which digital permitting procurement sits.

2.6 Technological disruptions and the Companys product response

Managements reading is that the current technology cycle favours incumbents holding a codified regulatory rule base and a statutory position inside public authorities, and disadvantages those without one. The exhibit below states each material shift, the platform in the portfolio that answers it, and what it changes in the Companys economics rather than in its feature list.

Technology trends and the Comoanvs response

The Companys product portfolio is being aligned with major technology trends reshaping the construction, infrastructure and urban-governance sectors. These trends include AI-based rule search and checking, computer vision for CAD/BIM, site intelligence, predictive asset analytics, digital twins, cloud-based interoperability and AI-enabled city operations.

The illustration shows how these emerging technology requirements correspond with platforms across the Civit ecosystem, including CivitCORE, CivitPLAN, CivitTWIN, RuleBuddy PlanAssist, CivitBUILD, CivitINFRA, CivitSUSTAIN, CivitTDRx and CivitMETAVERSE. The alignment reflects the Companys strategic direction and areas of product evolution, rather than implying that every capability shown is currently available in its final form.

References

(1) International Monetary Fund, World Economic Outlook, 2026 update.

(2) Oxford Economics, Global Construction Perspectives.

(3) Future Market Insights, Construction Tech Market: Global Industry Analysis and Opportunity Assessment to 2036.

(4) Grand View Research, Architecture, Engineering and Construction Software Market Report, 2026-2033.

(5) Grand View Research, Artificial Intelligence in Construction Market Report, 2024-2030.

(6) Dataintelo, Permitting and Licensing Software Market Research Report 2034.

(7) The Business Research Company, Digital Twin in Construction-Global Market Report 2026.

(8) Fortune Business Insights, Digital Twin Market 2026-2034.

(9) MoSPI/NSO, First Advance Estimates of National Income, FY 2025-26, January 2026.

(10) Government of India, Union Budget 2026-27-Budget at a Glance and Expenditure Profile.

(11) Government of India, Union Budget 2025-26.

(12) Press Information Bureau, "Cabinet approves Rs. One Lakh Crore Urban Challenge Fund to Drive Market-Led Urban Transformation" 14 February 2026.

(13) Press Information Bureau, "PM GatiShakti National Master Plan Evaluates 293 Infrastructure Projects Worth Rs. 13.59 Lakh Crore", 5 August 2025.

(14) MoHUA-Smart Cities Mission dashboard; AMRUT 2.0; PMAY-Urban 2.0 progress statements.

(15) MoHUA/Town and Country Planning Organisation, Model Building ByeLaws, 2016.

(16) Department of Land Resources-NAKSHA, under the Digital India Land Records Modernisation Programme.

(17) World Bank, India urban transformation; Registrar General, Population Projections for India and States 2011-36.

(18) IBEF; RICS; Mordor Intelligence (source of Figure 4 artwork); NextMSC, India Construction Market; ResearchAndMarkets, India Construction Industry Databook.

(19) Union Budget speeches 2021-22 to 2025-26-capital expenditure Budget Estimates as announced; PIB, Union Budget FY 2026-27: Strengthening the Capital Goods Sector, February 2026.

3. Competitive Landscape

3.1 Industry dynamics

The AECO technology market is an ecosystem of participants contributing different and often complementary capabilities. SoftTech occupies the specialised layer that connects technology platforms with jurisdiction-specific regulations, approval processes and public-authority workflows.

Participant group	Principal strengths	SoftTechs positioning
Global platform vendors	Companies such as Autodesk, Dassault Systemes, Bentley Systems and Esri provide established technologies for design, engineering, BIM, GIS and spatial analysis.	SoftTechs Civic products complement them by adding regulatory intelligence, approval workflows and authority-facing applications in the CAD, BIM, GIS and Digital Twin area. This provides a strong basis for technology alliances and integrated market offerings.
Regional and domestic e-government vendors	System integrators and software companies contribute government programme management, enterprise integration, stakeholder coordination and implementation reach.	SoftTech provides the product, regulatory and built-environment domain layer, while partners contribute wider programme execution. Delivery is generally project-specific and services-led, with limited product reuse or a common platform capable of supporting multiple regulatory workflows.
Emerging SaaS and AI companies	Newer technology companies bring cloud-native platforms, specialised AI capabilities, workflow automation and focused digital experiences.	SoftTech combines AI and SaaS capabilities with regulatory knowledge, operating deployments and public-sector implementation experience. It can integrate specialised technologies while providing the domain and workflow context required for practical adoption. Many lack the validated regulatory knowledge base, authority integrations, reference deployments and public-sector implementation experience required for large-scale adoption.

These participants are not necessarily direct substitutes for one another. Global vendors provide foundational technologies, system integrators provide implementation scale, and specialised companies contribute emerging digital capabilities. SoftTech connects these layers to the regulatory and operational requirements of the built environment.

This complementary positioning enables the Company to participate independently or through alliances, depending on the scale and requirements of an opportunity.

3.2 The Companys competitive defensibility

SoftTechs differentiation is not based on any single product or technology. It arises from the combination of domain knowledge, implementation capability, embedded government workflows, platform architecture and institutional experience. Individually, these capabilities can be replicated; reproducing them together, across multiple jurisdictions and operating environments, is considerably more difficult.

Table 3: How competitive advantage is sustained

Competitive lever	How it works	Competitive significance
Localisation capability	Regulations, processes, approval hierarchies and workflows vary substantially across authorities. SoftTechs experience allows its platforms to be configured for jurisdiction-specific requirements rather than deployed as a standardised generic application.	A new entrant must build not only the technology but also the implementation knowledge required to make it work within each authoritys operating environment.
Embedded operational workflows	The Companys solutions become part of day-to-day scrutiny, approval, transaction and administrative processes.	Once a platform becomes operationally embedded, replacement involves data migration, process redesign, retraining, integration changes and continuity risk—not merely procurement of alternative software.
Government implementation capability	Public-sector technology programmes require tender compliance, stakeholder coordination, agency integration, configuration, training, deployment and long-term support.	Execution capability and reference deployments become important alongside product capability, raising the practical entry threshold for less-established competitors.
Configurable platform architecture	CivicCore provides a common technology foundation while allowing products and regulatory logic to be adapted for different authorities, jurisdictions and use cases.	The Company can reuse core technology while localising the implementation, improving scalability without requiring every deployment to be built independently.
Qualification and institutional credibility	Experience with large public authorities, national institutions and CMMI Maturity Level 5 processes support participation in complex government technology programmes.	In many public-sector procurements, prior experience, process maturity and implementation credentials determine eligibility before technology is evaluated.
Interoperability ecosystem	The Company works with global technology platforms and partners across design, BIM, GIS, cloud, enterprise systems and related technologies.	This enables SoftTech to participate in broader digital ecosystems while retaining jurisdiction-specific domain capability at the application layer.
Ability to enter adjacent digital markets	Experience gained in regulatory and authority workflows can be extended into emerging areas such as digital TDR, AI-led review, digital twins and infrastructure management.	The existing domain and implementation base provides a lower-friction route into adjacent opportunities than building credibility in each market from the beginning.

3.3 Why the Companys position in India is sustainable

Indias built-environment technology market is structurally difficult to address through a single standardised product. Regulations, approval processes, administrative structures and technology maturity differ across states and urban authorities. This fragmentation creates a market in which domain knowledge and implementation capability are as important as the underlying software.

SoftTechs competitive position benefits from several characteristics of this market:

• High localisation requirement-regulatory and administrative variations make jurisdiction-specific configuration an essential part of implementation.

• Reference-driven procurement-experience of successfully executing government technology programmes strengthens qualification for subsequent opportunities.

• Mission-critical deployment environment-systems supporting approvals and regulatory processes require continuity, reliability, auditability and long-term support, increasing the importance of an established implementation partner.

• Process-maturity requirements-credentials such as CMMI Maturity Level 5 support participation in procurements where organisational capability is a threshold condition.

• Architecture that supports replication-the common CivitCore foundation allows the Company to carry technology and product learning from one deployment into another while adapting to local requirements.

• Expansion into adjacent workflows-emerging areas such as digital TDR, AI-assisted review and digital-twin-led management provide opportunities to apply existing domain and authority experience to new categories.

• Combination of technology and domain capability-global technology can be acquired or partnered for; local regulatory understanding and implementation experience accumulate over time. The combination is therefore more defensible than either capability independently.

4. Products and Services Portfolio

The Companys products were consolidated under the unified Civit brand during FY 2024-25 and FY 2025-26. The suite now spans the whole life of a built asset-Plan, Permit, Build, Operate and Sustain-on a single shared architecture.

SoftTechs recent initiatives demonstrate the growing breadth of its digital platform strategy across regulatory, infrastructure and industrial domains. These include CivitTDRx, CivitTWIN, CivitPERMIT, CivitINFRA, CivitSUSTAIN , and CivitMETAVERSE-reflecting expansion across government, construction enterprises, real estate , private consultants and industrial ecosystems producing construction materials.

New products, new markets and launches during the year

4.1 Coverage of the built-environment lifecycle

SoftTechs portfolio is structured as a connected platform family spanning the full built- environment lifecycle - from planning and validation to approvals, transactions, construction, infrastructure, sustainability and decision support. A common foundation of data, AI, interoperability, security and analytics enables continuity across stages, reduces fragmentation and supports scalable deployment across different stakeholders and use cases.

4.2 The Civit Suite at a glance

Platform	Function	Primary customer	Deployment status
CivitPERMIT (AutoCDR)	AI-driven building permit management with automated CAD and BIM code checking, digital workflow, GIS integration and mobile inspection.	Government and municipal authorities	Mature; 1,500+ cities, 18 states
CivitPLAN	AI-based building plan validation for CAD and BIM compliance reporting.	Architects, consultants and developers	Mature; pan-India, US pipeline
CivitTDRx	Digital exchange for the issuance, utilisation and management of Transferable Development Rights.	Government and real- estate developers	Launched FY26 (BMC; 18,000+ developers)
CivitTWIN	Pre-compliance simulation with twelve AI assistants and a predictive readiness score.	Government and international authorities	Launched FY26 (Germany; BMC letter of intent)
CivitINFRA	Unified infrastructure lifecycle management with AI-driven monitoring and BIM/GIS integration.	Government and public works agencies	Deployed FY26 (AAI, DDA, J&K, Gujarat)

4.3 Platform-by-platform review

CivitAI-domain-specific artificial intelligence

CivitAI is the Companys purpose-built artificial intelligence platform for the AECOO industry, trained on decades of regulatory and project data. It provides enterprise assistants, intelligent document analysis and workflow automation, and supplies the intelligence layer consumed by the other Civit products.

CivitPERMIT-the revenue foundation

CivitPERMIT, which carries the lineage of the Companys original AutoDCR product launched in 2006, remains the foundation of the business. It automates the building permit process end to end: the applicant submits a CAD drawing or BIM model; the rule engine evaluates it against the codified bye-laws of that jurisdiction; objections are raised and resolved digitally; departmental clearances are routed through an integrated workflow; and the sanctioned permit is issued with a complete audit trail.

Its principal functional components are automated scrutiny of drawings against jurisdiction- specific development control regulations;GIS-enabled zoning and land-use validation; configurable digital workflow with service-level tracking; integrated payment and fee computation; mobile field inspection with geo-tagged evidence; and a citizen portal for application status.

CivitPERMIT Concept: End-to-end digital permitting platform that manages applications, reviews, approvals, inspections, documents and communications through a single window.

Users: Architects, owners, builders, citizens, permit officials and government authorities.

Value Proposition: Simplifies permit processing, improves transparency and coordination, enables faster approvals, and delivers a better citizen and stakeholder experience.

CivitPLAN-Automated AI based Code Checking of CAD Plans and BIM Models

Concept: Al-powered compliance platform that checks CAD, BIM and GIS-based building proposals against applicable regulations and generates scrutiny outputs.

Users: Architects, consultants, developers, planners and approving authorities.

Value Proposition: Reduces design errors and rework, improves compliance accuracy, and supports faster, more predictable approval preparation.

CivitTDRx-a digital platform for transfer of development rights

Transferable Development Rights are a tradable instrument by which a landowner who surrenders land for a public purpose receives development rights usable elsewhere in the city. Their value depends entirely on provenance-on being able to establish that a right was validly issued, has not been previously used, and is being transferred by its rightful holder. Administered on paper, the instrument is slow to transact and vulnerable to dispute.

CivitTDRx, launched during FY 2025-26 and described by the Company as Indias first digital eTDR platform, combines blockchain-based provenance with Al-assisted processing to enable digital issuance, utilisation and management of development rights. It is in service with the Brihanmumbai Municipal Corporation, serving more than 18,000 developers. Extension to further municipalities is a stated priority.

CivitTDRx is commercially significant beyond its own revenue because it demonstrates that the Companys core competence transfers to adjacent regulatory instruments-not only to building approvals.

CivitTWIN-predictive compliance simulation

Launched during FY 2025-26, CivitTWIN allows an applicant to simulate the outcome of a submission before making it. The platform incorporates twelve AI assistants covering distinct aspects of the approval process, compliance simulation against the applicable rule set, and a predictive readiness score indicating the likelihood that a submission will be approved without objection.

During the year CivitTWIN was launched in the Brihanmumbai Municipal Corporation issued a letter of intent for an AI Permit Twin deployment. Productisation for the United States market and conversion of the BMC letter of intent are stated priorities for FY 2026-27.

Concept: AI-assisted digital twin that simulates the building approval journey across creation, review and submission before actual filing.

Users: Applicants, architects, consultants and approving authorities.

Value Proposition: Improves submission readiness, reduces rework and rejection, supports better guidance and tracking, and increases the likelihood of faster first-time approval.

CivitINFRA-infrastructure lifecycle management

CivitINFRA provides unified management of infrastructure assets across their lifecycle, combining AI-driven monitoring with integrated building information modelling and geographic information systems. It addresses the operational visibility problem in large multi-package infrastructure programmes, where progress and compliance across geographically dispersed sites are otherwise tracked only through periodic reporting.

Concept: Integrated works management platform covering the full infrastructure lifecycle— from planning and design to tendering, execution and asset management.

Users: Government authorities, consultants, contractors and specialty contractors.

Value Proposition: Improves planning, project visibility, cost and schedule control, coordination and lifecycle asset management through one integrated digital platform.

CivitBUILD-construction enterprise resource planning

CivitBUILD is an integrated construction ERP covering project planning and scheduling, procurement and materials management, subcontractor management, financial control and site management.

CivitSUSTAIN-assets operations, water, energy and fire safety management

CivitSUSTAIN extends the Companys reach into the post-occupancy phase, covering energy management, carbon monitoring, loT sensor integration and digital twin simulation of building performance. Its scope includes net-zero roadmaps, green-code compliance, construction waste management systems and fire prevention and disaster management applications.

The platform moved from research and development into order stage during FY 2025-26, with orders secured from Mitsubishi and a pipeline established at GIFT City. Management is also building a pipeline for construction waste management systems.

CivitMETAVERSE-Immersive digital twins

CivitMETAVERSE is an Al-powered immersive platform that combines AI, Digital Twins, and Metaverse technologies to transform ceramic design and selection. It enables users to create or import floor plans, visualize and customize ceramic products in realistic 3D environments, and make informed design decisions. The platform provides intelligent product recommendations based on project requirements, compliance, norms, and sustainability standards. It also supports real-time collaboration and stakeholder feedback, along with simulations of different lighting, weather, and time-of-day conditions. A mobile application further enables floor-plan creation, tile placement, and order management.

RuleBuddy Plan Assist - The AutoCAD embedded rule checking software

RuleBuddy PlanAssist is a compliance-checking application built on the AutoCAD OEM platform, addressed to architects, small practices and citizens rather than to authorities. Users draw inside a lightweight, branded CAD interface while their work is checked in real time against the same codified rule base underlying CivitPERMIT, with violations surfaced directly on the drawing. Its social significance is bundling CAD and compliance for parties who couldnt otherwise afford either. Its commercial significance is a direct relationship with individual professionals and a rule base embedded inside the drawing workflow itself.

4.4 Specialist Services

Alongside the platforms, the Company provides specialist engineering services which generate revenue in their own right and frequently serve as the entry point for a subsequent platform sale.

Service line	Scope
BIM Services	Three-dimensional compliance modelling, clash detection, model-based approval support, and conversion of legacy drawings into model-based assets.
GIS Services	Urban planning support, zoning and land-use analysis, spatial validation, and integration of spatial data with permitting and infrastructure systems
AI Services	Predictive analytics, compliance intelligence, document analysis and bespoke automation built on the Companys domain models.
Implementation and professional	Configuration, data migration, systems integration and change management for large government deployments.
services

BIM and GIS services revenue grew 18.6% during FY 2025-26

4.5 Product vision

Civit.AI-artificial intelligence for the AECO lifecycle

Civit.AI is intended as the intelligence core across the whole lifecycle, purpose-built for the AECO domain and trained on the Companys regulatory and project data rather than on general text.

CivitMETAVERSE-immersive digital twins for Industry 5.0

CivitMETAVERSE extends the Companys capability into immersive collaboration and operations: virtual walkthroughs of regulatory-compliant BIM models, AR-based design approvals and immersive training for the AECO industry; 3D city digital twins for urban simulation, traffic optimisation, energy planning and climate resilience modelling; and crossindustry applications in manufacturing, real estate, logistics and utilities.

4.6 Technology capabilities

SoftTechs technology capabilities span the full digital engineering stack, including cloud- native development, mobile applications, analytics, security, AI/ML rule engines, CAD/BIM, GIS, AR/VR, computer vision, databases and administration. This broad competency base enables the Company to design, integrate and scale domain-specific platforms across construction, infrastructure and government ecosystems.

Technology	Application	Products principally affected
Generative AI and Machine Learning	Automated scrutiny of plans, compliance validation, prediction of permit timelines, intelligent document analysis, workflow automation and fraud detection.	CivitAI, CivitPERMIT, CivitPLAN, CivitTWIN, RuleBuddy PlanAssist
Building Information Modelling	Three-dimensional compliance checking, clash detection, model-based approval of building permits.	CivitPLAN, CivitPERMIT (BIMDCR lineage)
Geographic Information Systems	Zoning validation, spatial analysis, infrastructure mapping, urban planning support.	CivitPERMIT, CivitINFRA, CivitPLAN
Digital Twin	Operational optimisation in the post-occupancy stage covering energy, water and HVAC; asset lifecycle management; ESG monitoring.	CivitSUSTAIN, CivitTWIN, CivitMETAVERSE
Blockchain	Secure document trail, tamper-evident audit logs, provenance of transferable development rights.	CivitTDRx, CivitPERMIT
Augmented and virtual reality	Virtual site inspection, immersive design review, stakeholder engagement and training.	CivitMETAVERSE, CivitINFRA
Internet of Things	Real-time sensor data layered onto threedimensional environments for live infrastructure performance monitoring.	CivitSUSTAIN, CivitMETAVERSE

4.7 Information security and intellectual property

The Company holds building plans, ownership records and approval histories for a substantial share of Indias urban built environment, and increasingly for international jurisdictions. Information security is therefore a first-order operational obligation rather than a support function. The Company operates under CMMI Maturity Level 5 (Development) certification and is ISO-certified, and management reports continuing investment in cloud-native platforms, cybersecurity frameworks and data-privacy compliance aligned with international standards.

4.8 Investments in technology and talent

Management has identified four areas of continuing investment.

• Al-first research and development-Investment in Al-driven regulation codification and predictive analytics to establish CivitAI as the intelligence core across the AECO lifecycle.

• Digital twins and metaverse-Development of metaverse-ready planning and immersive digital twin solutions enabling collaborative real-time simulation for smart cities, infrastructure and green buildings.

• Next-generation infrastructure-Cloud-native platforms, cybersecurity frameworks and data-privacy compliance aligned with international standards.

5. Business Model and Strategy

5.1 Evolution of the business model

Management characterises the Companys commercial history in four phases. The first three are historical; the fourth is forward-looking.

Phase	Period	Characteristics
Product era	Foundational years	Built a portfolio of standalone software products, including AutoDCR for building-plan scrutiny, BIM-based compliance tools and e-governance solutions for municipal authorities. The business was largely driven by licence-based products and project implementations, while establishing deep domain expertise, government relationships and market credibility.
Platform Consolidation	Transition period	Began bringing previously independent products onto the integrated Civit platform, supported by a common data and intelligence architecture. The business progressively shifted toward recurring and SaaS-based models while expanding its organisational and market presence internationally.
Platform-led growth	Current strategic phase	Marked a broader transition from product-led offerings toward platform-led, recurring-revenue businesses. CivitTWIN and CivitTDRx moved into commercial deployment, while CivitMETAVERSE and CivitSUSTAIN progressed from development into market opportunities. Greater emphasis was placed on productisation, recurring usage and improved operating efficiency.
Future trajectory	Going forward	Focused on increasing the contribution of recurring and pay- per-use models, extending Civit platforms across domestic and international markets, and progressively introducing subscription-led commercial models across the portfolio. The emphasis is on scalable platforms, deeper adoption and long-term recurring relationships.

5.2 Revenue model

SoftTech monetises the Civit Suite through several distinct revenue streams. The relative weight of these streams is the single most important driver of the Companys margin profile, cash generation and revenue predictability, and the deliberate rebalancing between them is the substance of the strategic shift described throughout this report.

Table 7: Revenue streams and their characteristics

Stream	Description	Revenue character
One-time licensing	Perpetual or term licence granted on procurement, typically to a state government or urban local body.	Lumpy; recognised on milestones; long collection cycle.
Pay-per-use/transactional	Charged per permit, per plan validated or per transaction executed on the platform.	Recurring; collected inperiod; scales with platform activity.
SaaS subscriptions	Periodic subscription for hosted access to Civit platforms.	Recurring and predictable annuity.
Annual maintenance contracts	Ongoing support, updates and regulatory rule maintenance for deployed systems.	Recurring; high retention; sticky.
Implementation and professional services	Configuration, data migration, integration and change management for large deployments.	Project-based; supports licence and SaaS conversion.
BIM and GIS Services	Specialist engineering services-3D compliance modelling, clash detection, spatial validation and urban planning support.	Project-based, repeat- oriented. 116

The disclosed FY 2024-25 mix-52% licensing, 25% pay-per-use and SaaS, and 21% annual maintenance-provides the base against which the FY 2025-26 mix of 64% licensing, 25% pay-per-use and SaaS, and 9% annual maintenance should be read. The movement over the year is therefore a twelve-percentage-point expansion in the one-time licensing share and a twelve-percentage-point contraction in the annual maintenance share, with the pay-per-use and SaaS share unchanged at 25%.

Why the revenue mix matters

Recurring share declined as one-time licensing grew faster than the recurring streams

Recurring revenue reduces the Companys dependence on winning new procurement each year, shortens the collection cycle, and-because the marginal cost of an additional transaction on a deployed platform is low-carries a higher incremental margin than implementation revenue. Management reports that recurring revenue accounted for 33% of the standalone sales mix during FY 2025-26, against 45% in FY 2024-25.

The recurring share therefore fell during the year. It fell because one-time licensing grew faster than the recurring streams, not because recurring revenue contracted: applying the disclosed mix percentages to standalone revenue, recurring revenue was broadly stable in absolute terms at approximately Rs. 42 crore in both years, while total revenue grew 37%. The strategic objective remains to raise the recurring share to 50% of total sales, and the FY 2025-26 movement runs counter to that objective for the year. Managements stated expectation is that the shift resumes as pay-per-use volumes build on platforms deployed under the licences won during the year.

5.3 Value creation model

The Companys value creation model describes how its capitals are deployed through its activities to generate outputs and, ultimately, outcomes for its stakeholders.

Stakeholder	Value delivered
Governments and urban local bodies	Transparent, rule-based and auditable approval processes; measurable reduction in approval timelines; improved ease-of-doing-business performance; reduced discretion and consequent reduction in process risk.
Developers and contractors	Faster and more predictable approvals; lower cost of compliance; integrated dashboards for project execution; reduced rework arising from objection and resubmission cycles.
Architects, consultants and citizens	Self-service compliance tools that make regulations legible without specialist intermediation; faster response cycles; access for small practices to capabilities previously available only to large firms.
Employees	Employment for 582 people as at 31 March 2026; structured learning and development; specialist career paths in AI, BIM, GIS and regulatory engineering.
Shareholders and investors	Growth in revenue and profit; an increasing proportion of predictable recurring revenue; improved working-capital efficiency; a business model with structurally high barriers to entry.
Communities	Faster delivery of housing and infrastructure; more sustainable urban development through embedded green-code compliance and net-zero tooling; digital records that improve accountability in urban governance.
Technology partners	Domain-specific application layer that extends the reach of partner platforms into regulated public-sector workflows.

5.4 The three-horizon strategic framework

Management has articulated its long-term strategy through a three-horizon framework, which provides a structured means of balancing near-term operational discipline against long-term platform and geographic expansion.

Horizon 1-Execute and stabilise

Horizon 1 concerns the operational foundation: delivering superior customer outcomes, improving project execution, optimising working capital, maintaining cost discipline and reinforcing governance through robust reporting frameworks and performance management. The reduction in the cash conversion cycle to 169 days during FY 2025-26 is the clearest evidence that this horizon is being executed. The improvement in employee cost as a proportion of revenue-from 26% in FY 2024-25 to 21% in FY 2025-26-is a second indicator.

Horizon 2-Platform leadership

Horizon 2 concerns establishing the Civit suite as an integrated, AI-first platform for the AECO ecosystem. Its components are the creation of a unified technology architecture through shared CivitCore components, the embedding of artificial intelligence across products and business operations, the commercialisation of next-generation solutions including CivitTWIN, CivitTDRx and CivitAI, and a continuing increase in the proportion of recurring and subscription-based revenue. The commercial launch of CivitTWIN and CivitTDRx during FY 2025-26, and the movement of CivitMETAVERSE and CivitSUSTAIN from research and development to order stage, represent material progress against this horizon.

Horizon 3-Scale growth

Horizon 3 concerns expansion into high-value domestic and international markets, leveraging digital twin, AI and smart-infrastructure capabilities to address large-scale infrastructure projects across airports, ports, highways and urban development. Execution is intended to be capital-efficient, relying on strategic technology partnerships and partner-led go-to-market models rather than on the direct establishment of large overseas sales organisations.

5.5 Strategic priorities for FY 2026-27

6. Growth and Market Expansion

6.1 Geographic presence

International operations moved from proof-of-concept to revenue generation during FY 202526. The Company now operates through subsidiaries in five countries in addition to its Indian base.

6.2 Strategic alliances

The Companys partner ecosystem provides reach without proportionate fixed cost and is central to the capital-efficiency of the Horizon 3 expansion strategy.

7. Opportunities, Challenges and Risk Management

7.1 Opportunities

Management identifies three distinct levers of growth. They differ materially in their capital intensity: widening the base requires new sales effort, deepening it requires almost none, and extending the perimeter requires codification investment ahead of revenue.

Domestic penetration of unserved authorities

The Company serves more than 1,500 cities and urban local bodies across 18 states. India has substantially more than 4,000 statutory urban local bodies and 28 states. The unserved remainder-principally smaller tier-two and tier-three authorities-represents the largest single addressable opportunity, and one for which the marginal cost of service is falling as the platform moves to SaaS delivery. Management has set a target of adding more than 300 new government clients.

Transaction volume growth within existing deployments

Where the Company has migrated a customer to a pay-per-use model, revenue grows with the volume of permits processed rather than requiring a new sale. Given projected construction growth of approximately 12% compound annually in India and the volume implications of PMAY-U 2.0, the installed base is itself a growth asset. This is the most capital-efficient growth available to the Company and explains managements emphasis on converting the base to transaction models.

Extension of the compliance perimeter

Historically the regulated perimeter covered zoning, setbacks, fire safety and structural provisions. It is extending to energy performance, embodied carbon, construction waste and water. Each extension enlarges the rule base the Company codifies and creates a new product surface-the commercial logic behind CivitSUSTAIN. The global green building market projected at USD 900-960 billion by 2030 is the addressable market for this extension.

Adjacent regulatory instruments

CivitTDRx applies the Companys competence to development rights; the NHEV initiative applies it to electric-vehicle charging infrastructure approvals. Each demonstrates that the underlying capability transfers to adjacent regulatory domains. Optionality of this kind is not the same as realised revenue, but it materially widens the range of markets the Company can address without rebuilding its core.

International markets

Germany, the United States, the Middle East and South-East Asia are the four markets in which the Company has established presence.

Partner-led distribution

The alliance with Autodesk, Esri, Dassault, SAP and Microsoft, provides reach without proportionate fixed cost.

7.2 Challenges

Government procurement and payment cycles

This is the Companys most material commercial exposure. Public-sector customers procure on extended timelines subject to budgetary and political cycles and pay on schedules that the vendor does not control. Days sales outstanding of 260 days quantifies the consequence. A high-interest-rate environment or a fiscal consolidation that reduces state or municipal capital expenditure would compress both new procurement and payment velocity.

Competitive intensity in AI-led compliance

New entrants applying general-purpose AI to compliance workflows do not currently possess the regulatory dataset or the deployment relationships the Company has accumulated. The threat is not that they replicate the dataset, but that improvements in general-purpose reasoning reduce the value of holding one. The Companys countermeasure is to apply artificial intelligence to its own dataset first.

Talent attraction and retention

The specialist combination the Company requires-engineers who understand both building regulation and machine learning-is scarce and is being bid for by better-capitalised employers.

Concentration risk

The Companys revenue is concentrated in a single customer type (government), a single geography (India) and a single regulatory domain (construction permitting). Each concentration is being actively reduced.

8. Financial Performance Review

8.1 Performance at a glance

Financial Year 2025-26 was a year of broad-based improvement for the Company, with revenue reaching Rs. 128.30 Cr, EBITDA at Rs. 34.39 Cr and PAT at Rs. 9.58 Cr. Growth was not limited to the top line alone-the quality of revenue also improved, with SaaS and pay-per-use income contributing Rs. 31.72 Cr and the cash conversion cycle shortening to 169 days.

This improvement in revenue quality reflects a deliberate shift towards recurring, transaction- led income streams rather than one-time project billing. The Companys growth is also well supported going forward, with a confirmed order book of Rs. 231.99 Cr and a pipeline of Rs. 436.23 Cr, alongside cumulative order wins of Rs. 143.20 Cr during the year. Together, these results demonstrate that FY26 growth was achieved with improving profitability, stronger cash discipline, and clear visibility into future revenue.

8.2 Revenue

The Company has delivered consistent revenue and EBITDA growth over the past five years, with revenue rising from Rs. 57.46 Cr in FY22 to Rs. 128.30 Cr in FY26. FY26 was a particularly strong year, with revenue growing 37.4% over FY25 (from Rs. 93.3 Cr to Rs. 128.3 Cr) and EBITDA growing 36.9% (from Rs. 25.1 Cr to Rs. 34.4 Cr). Importantly, this growth has been accompanied by margin stability, with EBITDA margins held above 27% through the year. This combination of scale expansion and margin discipline reflects the operating leverage inherent in the Companys platform-based business model. The five-year trend underscores a durable, structurally improving growth story rather than a one-off spike in performance.

Financial Performance-From FY 2021-22 to FY 2025-26 (Standalone & Consolidated):

Over the five years from FY 2021-22 to FY 2025-26, the Company has recorded a revenue CAGR of 17.4% on a standalone basis and 18.3% on a consolidated basis, reflecting sustained demand for its offerings. EBITDA has grown even faster, at a CAGR of 16.1% on both bases, outpacing revenue growth and pointing to improving operational efficiency and scale benefits. FY25 saw a temporary moderation in profitability, with PBT and PAT margins compressing to 6.5% and 4.4% respectively on a standalone basis, largely on account of transitional pressures during the year. FY26 marked a strong and complete recovery, with standalone PBT rising to Rs. 12.99 Cr and PAT to Rs. 9.57 Cr-the highest levels recorded in the five-year period. This rebound, with PBT and PAT indices reaching their highest points in the series, confirms that the FY25 dip was transient and that the underlying quality of the business remains strong.

Cash Flow Performance-SaaS/Pay-per-use Revenue

Pay-per-use revenue has grown consistently over the past five years, from Rs. 11.75 Cr in FY22 to Rs. 31.72 Cr in FY26, representing a five-year CAGR of 22%. This stream grew 38.6% in FY26 alone, rising from Rs. 22.89 Cr in FY25, and has consistently contributed more than 25% of the Companys total revenue. The steady scaling of this recurring, transaction-based revenue base reflects growing adoption of the Companys SaaS and platform offerings by its customers. As this revenue stream continues to grow as a proportion of the overall business, it is expected to bring greater predictability and resilience to the Companys earnings profile. This trend is a key pillar of the Companys broader strategic shift from a project-based model towards a platform-led, recurring-revenue business.

8.3 Working capital and cash generation

The Company has made significant progress in improving its working capital efficiency over the past five years, with Days Sales Outstanding (DSO) falling by 43%, from 462 days in FY22 to 260 days in FY26.

This improvement in collections, combined with a more moderate change in Days Payable Outstanding (down 100 days/10%, from 102 to 91 days), has driven the Cash Conversion Cycle down to 169 days in FY26-its lowest level in five years and a 58% reduction from FY22. As a result, free cash flow improved markedly during the year, moving from Rs. (4.85) Cr in FY25 to Rs. (0.09) Cr in FY26. This improvement has been driven primarily by the growing share of pay-per-use transactions, which enable more immediate cash realisation, along with milestone-linked billing and tighter credit controls. Continued reduction in the cash conversion cycle remains a stated priority for the Company going into FY27, with a target of bringing DSO below 200 days.

8.4 Capital management and financial ratios

The Companys liquidity position remains sound, with the standalone current ratio at 1.9 and the quick ratio at 1.8 in FY26, comfortably above the levels typically required to meet shortterm obligations. While these ratios have moderated gradually over the five-year period-from 3.1 in FY22-this reflects more efficient deployment of working capital rather than any strain on liquidity. The Companys debt/equity ratio has improved steadily over the same period, declining from 0.4 in FY22 to 0.2 in FY26, indicating reduced reliance on external borrowings. On a consolidated basis, liquidity remains stronger still, with a current ratio of 3.8 in FY26, reflecting the additional cash and current assets held at the group level. Overall, the balance sheet reflects a conservative capital structure that supports the Companys continued investment in platform development and expansion.

Return metrics followed the same pattern seen in profitability, dipping through FY24 and FY25 before recovering strongly in FY26. Standalone Return on Equity recovered from 2.3% in FY25 to 5.1% in FY26, while Return on Investment improved from 1.9% to 4.4% over the same period. Standalone Net Profit Margin similarly rebounded from 4.4% in FY25 to 7.5% in FY26, reflecting the broader profitability recovery discussed elsewhere in this report. Consolidated return ratios moved in the same direction, with Return on Equity improving from 0.8% to 3.1% and Net Profit Margin from 1.4% to 4.0%. This across-the-board recovery in return ratios reinforces that FY26 represents a genuine turnaround in the Companys ability to generate returns for shareholders, rather than a revenue-led improvement alone.

9. How We Create Value Beyond Financials

9.1 Human Capital

The Company had 582 employees as at 31 March 2026, against 530 as at 31 March 2025-a net increase of 52, or 9.8%. Headcount growth was concentrated in the two largest technical functions: implementation grew by 25 people to 315, and development grew by 21 people to 165. Together these two functions account for 82.5% of total headcount.

Table 18: Headcount by function

Function	As at 31 Mar 2026	As at 31 Mar 2025	Change
Management	10	13	-3
Implementation, Support, L2 Support	315	290	+25
Development	165	145	+20
QC and QA	30	27	+3
Sales, Pre-sales	20	16	+4
Marketing	5	5	-
Finance and accounts	8	7	+1
Admin, Purchase	8	8	-
IT Support	9	9	-
HR	10	8	+2
Total	582	530	+52

9.2 Diversity and inclusion

The Company is committed to fostering an employee-friendly, inclusive and respectful workplace where every employee feels valued, supported and empowered to contribute. It promotes equal employment and career-development opportunities for all genders, ensuring fairness and non-discrimination in recruitment, compensation, training, performance evaluation, promotions and leadership opportunities. The Company encourages diversity of backgrounds, perspectives and experiences while maintaining a workplace free from discrimination, harassment and bias. As at 31 March 2026 the Company employed 439 men and 143 women, a ratio of 3.06 to 1. As at 31 March 2025 the corresponding figures were 390 and 140, a ratio of 2.79 to 1. Women therefore constituted 24.6% of the workforce at the end of FY 2025-26, against 26.4% a year earlier.

This is a decline in the proportion of women in the workforce, notwithstanding an absolute increase of three. Of the 52 net additions during the year, 49 were men and 3 were women. The Company operates a Women in Tech programme with targeted leadership roles and states a focus on increasing global workforce diversity; on the FY 2025-26 numbers, that programme did not offset the composition effect of hiring concentrated in implementation and development roles. The Board considers it appropriate to state this directly rather than to present the absolute increase alone.

Table 19: Workforce composition by gender

As at	Male	Female	Total	Women as % of total
31 March 2026	439	143	582	24.6%
31 March 2025	390	140	530	26.4%
Change	+49	+3	+52	-1.8 pts

9.3 Engagement, retention and development

Managements stated approach is to develop retention strategies for critical roles and high- potential employees, and to identify skill gaps and create structured training, upskilling and reskilling plans aligned with business needs. Management reports that attrition is maintained at industry-competitive levels through employee stock option participation, flexible working and leadership mentoring, and that employee engagement and workplace culture are tracked through regular pulse surveys. The underlying data has not been supplied.

9.4 Health, safety and wellbeing

All employees are insured or covered under insurance in accordance with internal policies and applicable compliance requirements. As a software development and services organisation operating from office premises, the Companys occupational health and safety exposure is materially lower than in the construction industry it serves. Its principal safety obligations relate to workplace safety at its own premises, the safety of employees deployed at client and site locations for implementation and inspection work, and compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

9.5 ESG and sustainability

SoftTechs sustainability position has an unusual characteristic: the Companys environmental impact arises far more from what its products enable than from what its own operations consume. A software company operating from offices has a modest direct footprint. A platform that eliminates paper from two million building permits, that models the energy performance of buildings before they are constructed, and that embeds green-code compliance into the approval process itself, has an enabled impact of a different order.

Environment

• Carbon footprint mitigation-Paperless permitting platforms and SaaS delivery models displace physical document handling and the associated transport and storage.

• Energy and water management-Digital twin simulation for energy and water modelling in the post-occupancy phase through CivitSUSTAIN.

• Waste reduction-Net-zero roadmaps and construction waste management system capability within CivitSUSTAIN.

• Disaster resilience-Fire prevention and disaster management solutions built on digital twin technology.

10. Outlook and Way Forward

The Company enters FY 2026-27 with a confirmed order book of Rs. 231.99 crore, representing approximately 1.7 times FY 2025-26 revenue, and a qualified pipeline of Rs. 436.23 crore.

Managements stated focus for the year ahead falls into three areas. Operationally, the priority is to sustain the improvement in working-capital efficiency, targeting days sales outstanding below 200 days and continued reduction in the cash conversion cycle, while progressing profit after tax toward double-digit growth. Commercially, the priority is to convert the CivitTWIN letter of intent from the Brihanmumbai Municipal Corporation into full deployment, to scale CivitTDRx beyond Mumbai, to close at least two major CivitBUILD transactions in the Middle East, and to establish Germany as a flagship international market. Structurally, the priority is to resume the mix shift toward recurring revenue, targeting a 10-15% annual increase in the share of pay-per-use revenue and progressing toward 50% recurring revenue as a proportion of total sales.

• SaaS expansion into major cities and international markets.

• Deepening global alliances with Autodesk, Dassault and Esri.

• Scaling the AI, metaverse and ESG product lines from first orders into repeatable revenue.

• Increasing the recurring revenue share, with a stated ambition of 30%+ growth in that share over the next three years.

Each of the Companys seven Civit platforms enters FY27 with demonstrated traction from the year gone by and a clearly defined priority for the year ahead. CivitPERMIT/CivitPLAN secured a Gujarat order and launched in Germany during FY26, and the Company intends to expand its India pipeline while making Germany a flagship market. CivitINFRA was launched with the Airports Authority of India and built a strong local pipeline, with FY27 priorities focused on expanding into airports, ports, highways and railways. CivitBUILD, CivitSUSTAIN, CivitMETAVERSE, CivitTWIN and CivitTDRx each achieved similar milestones during the year-from Middle East traction and a Mitsubishi order to the Metawolf order and the Mumbai TDR launch-and each carries a specific growth target for FY27, ranging from geographic expansion to increasing transaction volumes. This platform-by-platform roadmap illustrates that the Companys growth strategy is built on a portfolio of businesses at different stages of maturity, each with a defined path to scale.

Business focus areas

SoftTechs next phase of growth will focus on expanding from individual software products into scalable, interconnected platforms serving the built environment, infrastructure and urban- management sectors. The Company will pursue three principal business focus areas.

1. Scaling the Existing Platform Portfolio

The Company intends to expand the platforms represented by CivitTWIN, CivitTDR and CivitMETAVERSE, including the AI Permit Twin, Development Rights Transaction and Manufacturing & Industrial platforms. The focus will be on converting initial deployments and market traction into reusable modules, reference implementations and repeatable rollouts.

The AI Permit Twin platform will be expanded across authorities and international markets, building on experience in Mumbai and Germany. CivitTDR will target replication across additional cities and states through transaction-based and platform-charge models. CivitMETAVERSE will support enterprise deployments, digital-factory experiences and configurable industrial solutions. Product integration, common architecture and SaaS, pay- per-use and transaction-linked revenue models will remain central to this expansion.

2. Large-Scale Digital Twin Projects

SoftTech plans to pursue large-scale Digital Twin opportunities across sectors such as ports, highways, airports, industrial areas and other complex infrastructure assets. These projects require the integration of BIM, GIS, IoT, artificial intelligence, asset information and operational workflows into a unified decision-support environment.

The Company will focus on practical use cases covering planning, construction monitoring, asset management, operational efficiency, maintenance, safety and risk management. SoftTech can participate as the domain and application-platform partner, complementing established engineering, geospatial, cloud and sensor technologies. Alliance-led participation with technology providers, engineering consultants and system integrators will enable the Company to address larger and more complex opportunities.

3. Introduction of CivitCity

The Company proposes to introduce CivitCity, an AI-based city-management platform designed to provide a unified operational and decision-intelligence layer for urban authorities. The platform will bring together city data, GIS, Digital Twins, regulatory workflows, infrastructure systems and existing departmental applications without requiring authorities to replace their current technology investments.

CivitCity will initially focus on high-value urban use cases such as road excavation management, water and non-revenue-water monitoring, flood and fire-risk assessment, infrastructure maintenance, development-plan implementation and city asset management. Its modular architecture will allow authorities to begin with priority use cases and progressively expand towards an integrated city-management environment.

Way Forward

Execution will centre on strengthening product architecture, security and interoperability; developing reference deployments; building strategic alliances; and adopting scalable, cash- efficient commercial models. Together, these initiatives are expected to broaden SoftTechs position from a regulatory-technology provider into an integrated platform company serving construction, infrastructure, industrial and urban-management markets.

Appendix A —Source Register A.1 External sources cited

Ref	Source	Reference
E-1	International Monetary Fund-World Economic Outlook	https://www.imf.org/en/Publications/WEO%20;%2 0https:/data.imf.org/en/Data-Explorer
E-2	Ministry of Statistics and Programme Implementation/National Statistics Office-First Advance Estimates of GDP, FY 2025-26	https://www.pib.gov.in/PressReleasePage.aspx Rs. PRID=2212087
E3	Government of India-Union Budget 2026-27	https://www.indiabudget.gov.in
E-4	NextMSC-India Construction Market	https://www.nextmsc.com/report/india- construction-market
E-5	ResearchAndMarkets-India Construction Industry Databook	https://www.researchandmarkets.com/reports/591 8199/india-construction-industry-databook-market
E-6	The Business Research Company/ResearchAndMarkets-Construction Market Report 2026	https://www.researchandmarkets.com/reports/593 9618/construction-market-report
E-7	Gartner-Global IT Spending Forecast 2026	https://www.gartner.com/en/newsroom/press- releases
E-8	Oxford Economics-Global infrastructure outlook	https://www.oxfordeconomics.com
E-9	World Green Building Council-Sustainable and affordable housing	https://worldgbc.org/article/sustainable-and- affordable-housing/
E-10	CII - Knight Frank-Affordable housing shortage projection	Reported in The Economic Times, article ID 115960911
E-11	Ministry of Housing and Urban Affairs-Smart Cities Mission dashboard	https://smartcities.gov.in
E-12	Ministry of Housing and Urban Affairs-AMRUT 2.0	https://mohua.gov.in
E-13	Pradhan Mantri Awas Yojana - Urban	https://pmay-urban.gov.in
E-14	World Bank-Doing Business reports	https://www.doingbusiness.org
E-15	NASSCOM-Annual Strategic Review 2026	https://nasscom.in/knowledge-center/publications
E-16	IDC-Technology spend forecast 2026	https://www.idc.com

VERIFICATION NOTE ON EXTERNAL SOURCES

The external sources listed above are those cited in the draft MD&A supplied by the Company. Each citation, each figure attributed to it and each URL should be independently verified against the current publication before this report is issued, since market-research figures are frequently revised between editions and URLs change.

Two citations in the source material carry query-string artefacts indicating they were retrieved through a third-party tool rather than directly from the publisher. These should be replaced with canonical publisher URLs. See Appendix C, item C-13.

Appendix B-Abbreviations

Abbreviation	Expansion
AECO	Architecture, Engineering, Construction and Operations
AAI	Airports Authority of India
AGM	Annual General Meeting
AI	Artificial Intelligence
AMC	Annual Maintenance Contract
AMRUT	Atal Mission for Rejuvenation and Urban Transformation
AOC	Annexure to the Companies (Accounts) Rules
AR/VR	Augmented Reality/Virtual Reality
BIM	Building Information Modelling
BMC	Brihanmumbai Municipal Corporation
BRSR	Business Responsibility and Sustainability Report
BSE	BSE Limited
CAD	Computer-Aided Design
CAGR	Compound Annual Growth Rate
CCC	Cash Conversion Cycle
CIN	Corporate Identity Number
CMMI	Capability Maturity Model Integration
CSR	Corporate Social Responsibility
CWMS	Construction Waste Management System
DDA	Delhi Development Authority
DPDP	Digital Personal Data Protection Act, 2023
DSO	Days Sales Outstanding
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortisation
ECL	Expected Credit Loss
EGM	Extraordinary General Meeting
EoDB	Ease of Doing Business
ERP	Enterprise Resource Planning
ESG	Environmental, Social and Governance
ESOP	Employee Stock Option Plan
EV	Electric Vehicle
FY	Financial Year (1 April to 31 March)
GDP	Gross Domestic Product
GDPR	General Data Protection Regulation
GIS	Geographic Information System
GVA	Gross Value Added
HVAC	Heating, Ventilation and Air Conditioning
loT	Internet of Things
JNPA	Jawaharlal Nehru Port Authority
LODR	Listing Obligations and Disclosure Requirements
MD&A	Management Discussion and Analysis
MIDC	Maharashtra Industrial Development Corporation
MITL	Maharashtra Industrial Township Limited
ML	Machine Learning
MoHUA	Ministry of Housing and Urban Affairs
MoSPI	Ministry of Statistics and Programme Implementation
NHEV	National Highways for Electric Vehicles
NIP	National Infrastructure Pipeline
NSE	National Stock Exchange of India Limited
PAT	Profit After Tax
PBT	Profit Before Tax
PMAY-U	Pradhan Mantri Awas Yojana - Urban
RERA	Real Estate (Regulation and Development) Act, 2016
ROE	Return on Equity
Saas	Software as a Service
SDG	Sustainable Development Goal (United Nations)
SEBI	Securities and Exchange Board of India
SEL	SoftTech Engineers Limited
TDR	Transferable Development Rights
ULB	Urban Local Body
YoY	Year-on-Year

Approval

This Management Discussion and Analysis Report forms Annexure A to the Boards Report of SoftTech Engineers Limited for the financial year ended 31 March 2026.

For and on behalf of the Board of Directors of

SoftTech Engineers Limited

Vijay Gupta

Chairman, Managing Director and CEO

DIN: 01653314

Date: August 12, 2026

Place: Pune