Systango Technologies Ltd Management Discussions

This Management Discussion and Analysis Report presents Systangos perspective on the industry environment, the opportunities and risks facing the business, our people and talent initiatives, financial performance, and the strategic priorities that shape our journey as a digital engineering partner focused on AI, Cloud, Data Engineering and Web3. With consolidated revenue growth of over 34% and improved profitability in FY 2025-26, we continued to invest in technology capabilities, talent and client relationships, positioning the Company for its next phase of growth.

We remain committed to building a sustainable business that stays relevant to our clients evolving needs, creates opportunities for our employees, delivers profitable growth for our investors and contributes positively to the communities in which we operate. A detailed discussion of the risks and challenges facing our business is provided in the Risk Management Report section of this Integrated Annual Report.

A. INDUSTRY STRUCTURE AND DEVELOPMENT

Global Economic Overview

During FY 2025-26, the global economy remained resilient despite trade tensions and geopolitical uncertainty. Global inflation continued to moderate through the year, though it remained above target in some advanced economies, including the United States. Against this backdrop, global technology spending continued to be supported by investment in software, cloud infrastructure and AI platforms, driven by enterprise AI adoption, agentic AI and digital transformation initiatives.

IT Industry Outlook & Overview

The Indian technology industry remained resilient during FY 2025-26, with the sector continuing its transition from scale-led growth towards value, innovation and specialised technology capabilities. According to NASSCOMs Strategic Review 2026, the Indian technology sector is estimated to cross USD 315 billion in revenue in FY 2025-26, a growth of approximately 6.1% over the revised FY 2024-25 base of USD 297 billion, with direct technology employment approaching 6 million and an estimated net addition of approximately 135,000 employees.

Artificial Intelligence emerged as a fundamental driver of change across the technology services industry during the year. The industry increasingly moved from experimentation and proof-of-concepts towards enterprise-scale and domain-specific AI adoption, including agentic AI and AI-enabled productivity. This transition is also reshaping traditional technology services delivery models, with providers increasingly focusing on outcome-oriented engagements, specialised capabilities and higher-value solutions rather than conventional scale-based delivery.

Source: NASSCOM, Technology Sector in India: Strategic Review 2026.

B. COMPANY OVERVIEW

Systango Technologies Limited is a publicly listed digital engineering and technology services company serving clients across global markets through its operations in the UK, United States and India. The Company partners with businesses to build, modernise and scale digital products and technology platforms.

Systangos core capabilities include Artificial Intelligence and Machine Learning, Data Engineering and Analytics, Cloud, Digital Product Engineering, and Blockchain & Web3. Its delivery model combines specialised technology expertise, agile execution and access to engineering talent in India, enabling the Company to support clients across the technology lifecycle.

C. FINANCIAL OVERVIEW

Financial and operational performance

Standalone Performance: During the year under review, your Company has reported a good rise in revenue from Operations amounting to Rs. 7,589.11 lakhs for the year 2026 as compared to Rs. 6,132.96 lakhs earned in the previous financial year.

The Company has recorded Profit Before Tax (PBT) of Rs. 3,635.92 lakhs as compared to Rs. 2,831.95 lakhs earned in previous financial year and Profit After Tax (PAT) at Rs. 2,988.63 lakhs as compared to Rs. 2,320.33 lakhs earned in the previous financial year.

Consolidated Performance: During the year under review, your Company has reported a good rise in revenue from Operations amounting to Rs. 9,037.86 lakhs for the year 2026 as compared to Rs. 6,714.44 lakhs earned in the previous financial year.

The Company has recorded Profit Before Tax (PBT) of Rs. 3,917.78 lakhs as compared to Rs. 2,909.51 lakhs earned in previous financial year and Profit After Tax (PAT) at Rs. 3,187.67 lakhs as compared to Rs. 2,373.11 lakhs earned in the previous financial year.

D. CONSOLIDATED FINANCIAL RATIOS

Particulars	As of 31st March 2026	As of 31st March 2025	% of changes if compared to preceding year	(Mandatory Remarks Variation >25%
1. Debt Equity Ratio	NA	NA	NA	NA
2. Current Ratio	7.19	9.24	(22.14%)	NA
3. Trade Receivable Turnover Ratio	6.64	5.36	23.80%	NA
4. Net Capital Turnover Ratio	0.97	0.81	20.63%	NA
5. Net Profit Ratio	35.27%	35.34%	(0.21%)	NA
6. Return on Investment Ratio	=RIGHT>2.78%	15.46%	(82.05%)	Due to higher realised gains on investments during the previous financial year and an increase in investments during the current financial year, there are gains which are yet to be realised
7. Inventory turnover ratio	NA	NA	NA	NA
8. Return on Capital employed	28.97%	28.51%	1.59%	NA
9. Operating Profit Margin	37.66%	34.15%	10.28%	NA
10. Return on Net Worth	23.53%	23.20%	1.42%	NA

E. RISK AND CONCERNS

This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including continued global trade and tariff-related uncertainty, cautious discretionary IT spending by clients, currency fluctuations, wage inflation, attrition, cybersecurity threats, and rapid technological change including the pace of AI adoption within the industry.

F. RISK MANAGEMENT

The Board continues to provide guidance to the Company in terms of ascertaining the risk factors applicable to the Companys business and providing direction to assess and mitigate the same. The Company periodically assesses the risks involved in the business and reports to the Board for them to take necessary steps in mitigating them.

G. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company acknowledges the necessity of a robust internal control framework, given its global presence and significant network of associates. The Companys internal control systems are tailored to its size and scope of operations, aiming to ensure reliable financial and operational information, compliance with laws, asset protection, proper transaction execution, and policy adherence. A clearly defined plan governs the delegation of authority for revenue and expenditure approvals for the Company.

The Companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The Audit Committee reviews reports presented by the internal auditors on a routine basis. The Committee makes note of the audit observations and takes corrective actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively.

H. HUMAN RESOURCES / INDUSTRIAL RELATIONS

We strengthened diversity, equity, and inclusion (DEI) through gender-neutral POSH policies and an active Internal Complaints Committee, ensuring a safe and inclusive workplace. Flexible hybrid work models continued to balance employee needs with business goals, supporting productivity. These initiatives in talent development, DEI, and safety reinforced our competitiveness and position us for sustained growth in FY 2026-27.

I. FUTURE PROSPECTS OF THE COMPANY

The Company believes that strategic agility, service diversification and disciplined cost management will remain important levers for selectively participating in clients increasing investments in AI-led modernisation. In line with these evolving market trends, the Company intends to continue strengthening its capabilities in Generative AI, Cloud and Web3, while investing in talent development and maintaining an agile delivery model. The Company also intends to continue evolving its commercial and delivery approaches in line with the industrys shift towards higher-value and outcome-oriented engagements.

Going forward, the Company will focus on scaling its emerging technology capabilities, strengthening and expanding client relationships, pursuing opportunities across global markets and maintaining a disciplined and agile operating model. Through these initiatives, the Company aims to position itself to participate in emerging technology-led opportunities while pursuing sustainable and scalable growth.

J. DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

CAUTIONARY STATEMENT

This management discussion and analysis contain forward-looking statements that reflect your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forward-looking statements as a result of many factors. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and not to regard such statements to be a guarantee of our future performance.

Yours faithfully,

For and on behalf of the Board of Directors of
Systango Technologies Limited
Vinita Rathi	Nilesh Rathi
Managing Director and	Whole Time Director and
Chief Executive Officer	Chief Financial Officer
DIN: 00427239	DIN: 00430725
Place: Indore
Date: 7th September, 2026