Synoptics Technologies Ltd Management Discussions

The Management of Synoptics Technologies Limited is pleased to present the Management Discussion and Analysis Report (MDAR) for the financial year ending March 31, 2026, in accordance with the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations 2015.

This report aims to provide a comprehensive analysis of the companys performance, industry dynamics, operational highlights, and future outlook. This outlook is based on assessment of current business environment. It may vary due to future economic and other developments both in India and Abroad.

It contains financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction with the Companys Audited Financial Statements for the year ended on March 31, 2026.

Forward looking statement - Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

1. COMPANY OVERVIEW

Synoptics Technologies Limited is an IT Services company headquartered in Mumbai, providing technology-led and innovation-driven solutions to enterprises, small businesses and Government organizations across India. The Company assists its customers in their digital transformation journey by designing, implementing and managing technology solutions aligned with their specific business requirements and industry use cases.

The Company provides comprehensive solutions across key areas of IT infrastructure, cloud, IT security and data centre technologies. Its principal areas of service include:

IT Infrastructure and Network Connectivity:

The Company provides end-to-end IT infrastructure solutions, including connectivity solutions for branch offices and distributed locations. It undertakes the supply, implementation, configuration and support of network equipment required for IT environments, including routers, switches and other networking infrastructure. The Company designs solutions based on the customers requirements and provides on-site support across India.

Cloud Solutions and Application Migration:

Synoptics assists customers in designing and implementing solutions for hosting their applications on cloud platforms. Its services include cloud solution design, application migration, implementation and ongoing management of cloud environments, enabling customers to leverage the scalability, flexibility and efficiency of cloud technologies.

IT Security Solutions:

The Company provides IT security solutions designed to help customers secure their IT infrastructure and applications. Its services include firewall installation, configuration, implementation and management, together with associated support services to address the evolving security requirements of its customers.

Data Centre Design and Solutions:

Synoptics provides data center design and technology solutions with a focus on adopting newer technologies to optimize infrastructure investments and improve operational efficiency. Its solutions are designed to reduce space and power requirements while delivering clearly defined technology and business outcomes.

Technology-led Digital Transformation:

The Company works with enterprises, small businesses and Government organizations to support their digital transformation initiatives through technology-led and innovation-driven solutions. Synoptics develops and implements solutions for various industry-specific use cases, with an emphasis on understanding customer requirements and delivering solutions that provide optimal functionality, value for money, flexibility and operational support.

The Company is currently operating across India and has a team of approximately 393 employees. With its pan-India presence and on-site support capabilities, Synoptics is positioned to serve its B2B (Business-to-Business) customers across multiple locations. The Company seeks to provide its customers with a combination of optimal functionality, value for money, commitment and flexibility, supported by its ability to deliver implementation, management and on-site support services across India.

Through its integrated service capabilities, industry-oriented approach and technology expertise, Synoptics aims to be a trusted technology partner for its customers, helping them build, modernize, secure and manage their IT environments while supporting their evolving digital and business objectives.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian IT industry continues to witness structural growth, driven by increasing digitisation across enterprises, small businesses and Government organisations. Growing adoption of cloud computing, cybersecurity, data analytics, artificial intelligence and digital applications is resulting in increased investments in IT infrastructure, network connectivity, data centres and managed technology services. According to NASSCOM, Indias technology sector is expected to cross US$315 billion in FY2026, reflecting the continued expansion of technology adoption and digital transformation in the country. The industry is also witnessing a shift towards technology solutions that provide measurable business outcomes, greater operational efficiency and cost optimisation.

Cloud adoption remains one of the key growth drivers for the industry. Organisations are increasingly migrating applications and workloads from traditional on-premise environments to public, private and hybrid cloud platforms. Gartner estimates that end-user spending on public cloud services in India is expected to reach approximately US$17.5 billion in 2026, representing growth of around 28% over the previous year. This trend is creating opportunities for service providers offering cloud migration, implementation, integration and managed cloud services.

The increasing digitisation of business operations has also resulted in greater emphasis on cybersecurity. Rising cyber threats, regulatory requirements and the increasing complexity of hybrid IT environments are driving demand for network security, firewalls, managed security and other cybersecurity solutions. Gartner expects information security spending in India to reach approximately US$3.4 billion in 2026.

India is also witnessing significant expansion in data centre infrastructure, supported by cloud adoption, digital services, AI workloads and increasing data generation. Government data indicates that Indias data centre capacity increased from approximately 375 MW in 2020 to around 1,500 MW in 2025. The industry is increasingly adopting technologies focused on higher computing density, energy efficiency, space optimisation and improved power utilisation.

The emergence of Artificial Intelligence and Generative AI is expected to further accelerate investments in technology infrastructure. AI adoption is creating demand for high-performance computing, enhanced network infrastructure, scalable storage, cloud infrastructure and modern data centre capabilities.

These developments provide a favourable environment for IT infrastructure and technology solution providers. Companies with capabilities spanning network infrastructure, cloud migration and management, cybersecurity, data centre solutions and managed IT services are positioned to benefit from the continuing digital transformation of Indian businesses and Government organisations.

For Synoptics Technologies Limited, the increasing adoption of digital technologies and the growing need for secure, scalable and efficiently managed IT infrastructure continue to provide opportunities for the Company to expand its customer base and strengthen its presence across India.

3. SEGMENT - WISE OR PRODUCT- WISE PERFORMANCE

The Company at present is engaged in the Information Technologies Services which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS –17 are not applicable to the Company.

We offer our customers a comprehensive range of Managed IT Services and Solutions. Our Go-to-Market (GTM) strategy and Market Positioning: For internal purpose, we have classified our customers as below:

• Shifting focus from being an IT Services organization to technology organization.

• Standardizing and productizing offerings.

• GTM focus on Small and Medium Businesses.

• Developing international business.

• Setting up offshore Centre of Excellence (CoE) for cloud migration.

• Software outsourcing (cloud native apps) as a mature Line of Business.

• Focus on high profitability, recurring and SaaS based deals.

• Lean and thin organization based on tech competencies and remote delivery of the solutions across the globe.

• Digital Marketing as a key driver for the generation of the leads and building up brand in to tech space.

Managed IT Services and solutions services consist of the solution as follows:

• IT Networking Solution

• LAN and WAN Solution

• Software based networking.

• Datacenter Solution

• IT Security

• Data backup and recovery

• Cloud Architecture

4. INTERNAL CONTROL SYSTEM

Our company has put in place standard operating procedures that ensure effective and transparent internal controls for efficient delivery of services. As part of the Corporate Governance Report, CFO certification is provided, for assurance on the existence of effective internal control systems and procedures in the Company. The Audit Committee of the Board oversees the internal audit function. The Audit Committee is regularly apprised by the internal auditors through various presentations. The internal audit function provides assurance to the Board that a system of internal control is designed and deployed to manage key business risks and is operating effectively.

We have been refining our management methodologies by way of periodical reviews so as to realign our tactics to meet the changes on the ground. The Company has adopted policies and procedures for ensuring orderly and efficient conduct of the business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures. The internal control system is commensurate with the nature of business, size and complexity of operations and has been designed to provide reasonable assurance on the achievement of objectives, effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. Financial discipline is emphasized at all levels of the business and adherence to quality systems and focus on customer satisfaction is critical for the Company to retain and attract customers and business and these are followed rigorously.

5. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

For the year ended March 31, 2026, our business performance in terms of revenue witnessed a moderate growth. This was true at both Standalone and Consolidated level.

On Standalone basis, the Company registered a total revenue at Rs 5,699.35 Lakhs, for the year 2026 as compared to Rs 4,322.37 Lakh in financial year 2025. Company registered Profit After Tax at Rs408.54 Lakhs in financial year 2026 as against Rs 403.76 Lakhs in financial year 2025.

On Consolidated basis, the Company registered a total revenue at Rs 5705.30 Lakhs, for the year 2026 as compared to Rs 4327.17 Lakh in financial year 2025. Company registered Profit After Tax at Rs409.28Lakhs in financial year 2026 as against Rs 404.11Lakhs in financial year 2025.

6. OPPORTUNITIES, THREATS, RISKS AND CONCERNS:

The Company operates in a rapidly evolving technology environment, presenting opportunities arising from increasing digital transformation, cloud adoption, cybersecurity requirements, data centre expansion and growing adoption of Artificial Intelligence and other emerging technologies. The Companys capabilities across IT infrastructure, network connectivity, cloud solutions, IT security and data centre solutions, together with its pan-India presence and on-site support capabilities, provide opportunities to expand its customer base, offer integrated solutions and strengthen relationships with existing customers.

At the same time, the Company operates in a highly competitive and technology-intensive industry and is exposed to risks such as intense competition and pricing pressure, rapid technological changes, dependence on technology vendors, availability and retention of skilled manpower, cybersecurity threats and supply-chain disruptions. Changes in customer technology spending, vendor arrangements, regulatory requirements or economic conditions may also impact the Companys business and margins. The Company seeks to manage these risks through continuous enhancement of its technology capabilities, strong customer relationships, vendor management, skilled resources and focus on delivering reliable and cost-effective solutions.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. The Company aims to develop the potential of every individual associated with the Company as a part of its business goals. The Company focuses on providing individual development and growth in a work culture that ensures high performance and remains empowering. The Company has employed over 393 strong and dedicated workforce travel abreast of the latest trends.

8. KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to give details of significant changes (Change of 25% or more as compared to the immediately previous year) in key sector specified financial ratio.

PARTICULARS	STANDALONE F.Y. 26	STANDALONE F.Y. 25	Variation	Reason for Variation
Current Ratio	1.98	1.96	1.01%	Current Assets have increased as compared to the previous year, resulting in a marginal improvement in the Current Ratio.
Debt-equity ratio	0.44	0.48	-6.96%	Long-term borrowings have marginally decreased as compared to the previous year, resulting in a marginal improvement in the Debt-to-Equity Ratio.
Debt service coverage ratio	2.76	2.65	4.43%	Improved as earnings available for debt service grew faster than total debt service obligations.
Return on equity ratio	0.06	0.06	-4.45%	Broadly unchanged; marginal decline in profit after tax relative to average equity
Inventory turnover ratio	6.94	8.27	-16.11%	Declined on account of lower cost of goods sold and/or higher average inventory held during the year
Trade receivables turnover ratio	2.70	2.45	10.21%	Improved, reflecting lower average trade receivables relative to revenue.
Trade payables turnover ratio	3.40	4.27	-20.25%	Declined due to higher average trade payables and/or lower net credit purchases during the year.
Net capital turnover ratio	1.68	1.27	31.93%	The ratio increased by 31.93% as average working capital contracted proportionately more than the movement in revenue from operations, thereby increasing the revenue generated per unit of net working capital.
Net profit ratio	0.07	0.09	-23.26%	The net profit margin declined owing to margin compression from higher input/purchase costs not fully recovered through selling prices.
Return on capital employed	0.10	0.07	44.17%	ROCE declined as profit before interest and tax reduced on account of lower revenue, while average capital employed increased.