TAC Infosec Ltd Management Discussions

The discussion hereunder covers Companys performance and its business outlook for the future. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.

The Managements views on the Companys Performance and outlook are discussed below:

ECONOMIC REVIEW:

Global Economy:

Global economic growth is projected to remain moderate at 3.3% in both 2025 and 2026, below the historical average of 3.7% from 2000 to 2019. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO). Global headline inflation is expected to decline to 4.2% in 2025 and further to 3.5% in 2026, with advanced economies anticipated to reach their inflation targets earlier than emerging and developing markets. According to the International Monetary Fund (IMF), the outlook faces medium-term downside risks and requires careful policy management to balance inflation and growth.

The global economic landscape in 2025 presents a mixed outlook, characterized by subdued growth, easing inflation, and increasing geopolitical and trade-related uncertainties. According to the January 2025 Chief Economists Outlook, 56% of economists anticipate a weakening global economy, with significant regional divergence. While the U.S. and South Asia, particularly India, are expected to deliver robust growth, Europe and China face a more sluggish outlook. Inflation is projected to ease to 4.3% globally, although elevated services inflation persists. U.S. policy developments are expected to exert a long-term impact on global trade, fiscal policy, and market dynamics. Rising fragmentation in trade, labor mobility, and technology flows·driven by geopolitical tensions·is expected to increase operational costs and disrupt global supply chains.

Indian Economy Outlook:

India is expected to remain one of the fastest-growing major economies in 2025 and 2026, with GDP growth forecasted at around 6.2% to 6.3%, significantly outpacing the global average of 2.8% to 3.0%, according to IMF estimates. This strong and resilient growth is supported by steady consumer spending, sustained government investment, and ongoing structural reforms focused on infrastructure development, digital innovation, and financial inclusion. Despite global challenges such as rising trade tensions, increased tariffs·particularly from the U.S.·and disruptions to supply chains, Indias robust economic fundamentals and proactive policies provide a stable foundation for continued expansion. The countrys expanding digital economy and improved regulatory environment create new opportunities, especially in technology and cybersecurity sectors. The IMFs projections reaffirm Indias role as a key driver of global economic activity, highlighting its rising global influence and capacity to navigate external risks while sustaining long-term growth.

The governments sustained focus on Digital India, Make in India, and Atmanirbhar Bharat continues to transform the economic landscape by accelerating digital adoption across industries, public services, and financial inclusion. The increasing penetration of smartphones, high-speed internet, and cloud-based solutions has expanded the attack surface for cyber threats, thereby significantly elevating the importance of robust cybersecurity measures.

Amid this digital expansion, the Government of India has intensified its efforts around data protection, cyber hygiene, and national cybersecurity preparedness through initiatives like the Digital Personal Data Protection Act, 2023, and proposed updates to the National Cybersecurity Strategy. These policy frameworks, combined with the growing threat landscape, have led to increased demand for advanced, scalable, and proactive cybersecurity solutions across both private and public sectors.

Indias burgeoning startup ecosystem and rising investments in emerging technologies such as Al, loT, and blockchain have also created new vectors for cyber threats, further underlining the critical role cybersecurity companies will play in securing the countrys digital growth.

As regulatory frameworks evolve and enterprise awareness increases, cybersecurity is no longer viewed as a cost center but a strategic enabler of trust, compliance, and digital transformation. This presents a strong runway for growth for cybersecurity solution providers.

In summary, the Indian economys growth trajectory in 2025·powered by digital acceleration, policy momentum, and technology-led innovation·provides a favorable environment for cybersecurity entities to scale operations, develop differentiated solutions, and partner with stakeholders across industries to build a safer digital India.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian technology industry is on a strong growth trajectory and is projected to achieve a significant revenue milestone of US$

300 billion by FY26, according to NASSCOMs Annual Strategic Review 2025. In FY25, the industry is estimated to generate US$ 283 billion in revenue, reflecting a 5.1 % year-on-year growth and an addition of US$ 13.8 billion over the previous year. This growth is primarily driven by advancements in engineering R&D and the rapid expansion of Global Capability Centres (GCCs), which now exceed 1,750 in number and position India as a high-value hub for services and product engineering. Employment in the sector is also expanding, with an estimated 126,000 new jobs added in FY25, bringing the total workforce to 5.8 million. The domestic technology sector continues to show strong momentum, expected to reach US$ 58.2 billion with a 7% annual growth rate, outperforming export growth for the second consecutive year. Key enablers include increased adoption of enterprise software, cloud technologies, and a 21 % rise in data centre capacity, which has further attracted investment. Artificial Intelligence, especially the rise of Agentic Al, is reshaping business models and driving digital transformation, with 82% of CXOs planning to boost digital investments by over 5% in 2025. Looking ahead, 77% of technology service providers anticipate higher growth in FY26, supported by ,

expanding digital adoption, Al-driven demand, and emerging market opportunities. Additionally, e-commerce is witnessing a rapid 35% annual growth, with gross merchandise value expected to approach US$ 200 billion. The broader digital economy now contributes approximately 12% to Indias GDP, with digital public infrastructure adding an extra 1 %, underscoring the sectors pivotal role in driving inclusive, resilient, and innovation-led economic growth.

OUR BUSINESS:

Our Company was originally incorporated as TAC Infosec Private Limited on August 1,2016, operates as a leading cybersecurity solutions provider. TAC Security, a global cybersecurity company specialising in vulnerability management, is a publicly listed cybersecurity company that made headlines with its oversubscribed IPO worth $1 billion. TAC Securitys flagship product, ESOF [Enterprise Security in One Framework), excels in cyber scoring, cyber risk quantification, and leveraging advanced Al for vulnerability assessment and penetration testing. TAC Security holds prestigious certifications like CREST, and ISO 27001 and partner with tech giant Google. Serving a diverse global clientele, TAC Security is committed to innovation and excellence in cyber security for Fortune 500 companies, start-ups, and Governments Globally.

We are a SaaS and Al-based cybersecurity company offering Risk-Based Vulnerability Management (RBVM), helping organizations prioritize vulnerabilities by severity, making cybersecurity cost-effective and efficient, while providing a customized approach to secure IT infrastructure.