TVS Electronics Ltd Management Discussions

Public capital expenditure continued its upward trajectory, with infrastructure investment reaching Rs12.2 lakhs Crores. Investment in transport networks and urban infrastructure is extending economic activity well beyond traditional metropolitan centres. The focus on strengthening Tier-2 and Tier- 3 cities, especially those with populations exceeding five lakhs, reflects their growing importance as emerging economic hubs.

For industries serving these markets, including electronics a and technology products, this A geographic broadening represents k a meaningful expansion of the addressable consumer base.

Complementing the fiscal push, monetary policy remained supportive yet cautious. The Reserve Bank of India (RBI) held the repo rate steady at 5.25% in April 2026. This was following a cumulative rate reduction of 100 basis points in 2025-26 to support domestic demand, while retaining a neutral stance that leaves room to respond to evolving conditions.

Inflation remained well-contained, with CPI projected at 2.1% for 2025-26, supported by stable food prices, strong agricultural output, and subdued core inflation.

The principal risk to this benign trajectory is external, including energy price volatility driven by the West Asia conflict. The RBIs calibrated stance reflects an awareness of that vulnerability.

The current policy stance reflects a balance between sustaining growth momentum and safeguarding macroeconomic stability in an uncertain global environment.

Digital India Programme

The Digital India Programme reached a defining phase in 2025-26, evolving into a robust, inclusive, and increasingly sovereign digital ecosystem. What began as an initiative to expand connectivity has now matured into a comprehensive framework for digital governance, with a strong emphasis on ultra-fast infrastructure and trusted artificial intelligence.

A central pillar of this transformation is the progress of the BharatNet project. As of April 2026, more than 2.18 lakh gram panchayats have been made service-ready, supported by an extensive optical fibre network exceeding 42.36 lakh kilometres. This infrastructure has enabled the rollout of rural 5G clusters, significantly narrowing the urban-

rural digital divide and ensuring that high-speed internet access is more widely democratised.

Building on this foundation, Indias Digital Public Infrastructure continued to set global benchmarks in scale and interoperability. The Unified Payments Interface (UPI) crossed one million monthly cross-border transactions in 2025-26 and operates across more than ten countries. At the same time, the Open Network for Digital Commerce (ONDC) has reshaped digital markets by integrating small retailers and enabling nationwide logistics support, including through the Department of Posts, thereby empowering rural entrepreneurs and artisans.

Efforts to deepen inclusion have also gained momentum. The PMGDISHA programme has surpassed its initial targets by training over 6.39 Crore individuals in rural digital literacy.

Complementing this, the Bhashini Al platform has advanced language accessibility, enabling citizens to interact with digital services in their native languages.

Alongside expanding access and usage, India has made strategic investments in future technologies to strengthen digital sovereignty.

The IndiaAl Mission received an allocation of Rs1,000 Crores in the Union Budget 2026-27 to build domestic computing capacity and advance Al capabilities. In parallel, the India Semiconductor Mission (ISM) 2.0 marks a significant shift towards self-reliance in hardware, with multiple semiconductor fabrication and assembly units expected to begin commercial production. Supported by targeted financial outlays, these initiatives signal Indias transition from a technology consumer to a key player in global electronics manufacturing.

Outlook

Indias GDP growth is projected at around 1% for 2026-27, according to the India Outlook report by BMI, a Fitch Solutions unit, following growth of 7.6% in the previous financial year. The outlook reflects a moderation in economic momentum, with weaker activity observed in early 2025-26. Additionally, ongoing geopolitical tensions, particularly involving Iran, are expected to disrupt global supply chains and weigh on external demand, contributing to a more cautious growth trajectory.

Industry Overview

IT Peripherals Market

The Indian IT peripherals market continues to play a vital role in enabling the countrys digital transformation, supporting critical sectors such as education, banking, manufacturing, and retail. As digital adoption deepens across the economy, peripherals such as keyboards, mice, mechanical printers, barcode scanners, and transaction accessories have become integral to both personal and enterprise computing environments.

The market is witnessing sustained momentum, driven by the growing penetration of PCs and laptops across urban and rural regions, alongside rising disposable incomes and increasing digital awareness.

This expanding digital ecosystem is creating strong and consistent demand for a wide range of peripherals, opening up significant opportunities for manufacturers and solution providers. The shift towards wireless, connected, and heavy-duty, performance-driven devices is further shaping consumer preferences, while government-led initiatives continue to accelerate digital adoption and e-commerce penetration.

Demand remains broad-based, with strong uptake across industries including banking, financial services, telecom, education, and retail. At the same time, the specialised terminal and billing automation segment is emerging as a high-potential growth area, driven by increasing engagement from smaller retail formats (Kirana stores) and the rising popularity of Unified Payments Interface (UPI) connected hardware.

While affordability of advanced peripherals can pose challenges for certain customer segments, the market continues to demonstrate resilience. Rapid technological advancements and shorter replacement cycles are encouraging frequent upgrades, ensuring sustained demand as users seek enhanced efficiency, functionality, and user experience.

Growth Drivers

Domestic Market Growth & Digital Economy Expansion

Strong domestic technology adoption, supported by one of the worlds largest internet user bases and affordable data access, continues to anchor industry growth. Expanding digital consumption is driving sectors such as e-commerce, fintech, and digital media, strengthening the domestic IT ecosystem and creating sustained demand.

A clear shift is underway in : IT investments and talent : deployment beyond : metropolitan centres into : Tier-2 cities. These emerging : hubs are expanding the : available talent pool, reducing operational costs, and fostering inclusive : growth, while enabling ; companies to scale : operations across a broader ; geographic footprint.

Skilled Workforce & Talent Advantage

Indias vast, highly skilled, and English-speaking workforce remains a core strength. Continuous investments in upskilling, particularly in high-demand areas such as artificial intelligence, data science, and cybersecurity, are enhancing productivity and ensuring long-term competitiveness.

Digital Transformation ; & Emerging Technologies

Union Budget 2026-27 Highlights

A proposed tax holiday until 2047 for foreign companies offering cloud services through India-based data centres is designed to attract sustained global investment. With approximately USD 70 billion already under implementation and an additional USD 90 billion announced, India is rapidly scaling its data centre infrastructure.

The India Semiconductor Mission (ISM) 2.0, backed by an allocation ofRs1,000 Crores for 2026-27, marks a strategic push toward building a self-reliant semiconductor ecosystem and reducing import dependency.

The allocation for the Electronics Components Manufacturing Scheme (ECMS) has been raised from 22,000 Crores to Rs40,000 Crores, reflecting strong industry participation and sustained policy momentum.

MeitY has been allocated approximately Rs21,633 Crores, signalling continued emphasis on digital infrastructure and innovation. On the skilling front, the Skill India Programme has received Rs2,800 Crores, alongside Rs600 Crores for a new Integrated Skilling Architecture initiative.

The Budget also proposes the establishment of a High-Powered Standing Committee on Education to Employment, recognising the transformative impact of Al on the workforce. The committee will assess Als implications on jobs and recommend measures to align workforce capabilities with the evolving demands of the digital economy.

PLatformisation & Sovereign Al

The industry is moving towards vertical-specific and localised Al solutions. The rise of Small Language Models tailored for sectors such as healthcare and banking, highlights this shift. In parallel, semiconductor initiatives are enabling tighter integration between software and locally designed hardware, particularly in EVs and edge computing.

Increasing Demand i for Cybersecurity : Solutions

With rising digitalisation, organisations are : increasingly prioritising : cybersecurity to safeguard : data and infrastructure.

This has led to growing : demand for advanced : threat detection systems,

while also increasing the ; importance of data science : and analytics, and : driving demand for : specialised talent.

Regulatory Maturity & Data Governance

The implementation of advanced data protection frameworks, accelerated by the operationalisation of Indias Digital Personal Data Protection (DPDP)

Act, is creating new growth avenues. Organisations are adopting privacy-by-design models and consent-driven architectures to comply with strict data fiduciary responsibilities, while IT firms are enabling global and domestic clients to meet evolving regulatory requirements around data security, transparency, and Al governance.

TVSE is Well Positioned

TVS Electronics is well aligned with the structural growth trends reshaping Indias IT peripherals and digital commerce landscape, creating significant opportunities for revenue expansion and market share gains. A key growth driver is the rising adoption of billing automation and UPI- enabled transaction ecosystems among small and medium retailers, including kirana stores. This trend is expanding demand for specialised point-of-sale terminals, barcode scanners, printers, and related transaction hardware, creating a significant addressable market for TVS Electronics product portfolio.

Indian Consumer Electronics Industry

The Indian consumer electronics market continues to witness steady expansion, driven by rising digital adoption and evolving consumer preferences. Growth is supported by increasing disposable incomes, a rapidly expanding middle class, and a tech-aware younger population actively embracing connected lifestyles.

Demand is being fuelled by the growing adoption of smartphones, wearables, and smart home appliances, alongside the rapid expansion of e-commerce platforms improving accessibility across urban and rural markets. Government-led initiatives and advancements in 5G and Al are accelerating market development and innovation.

Key Trends

Smart Home Devices Adoption

The adoption of smart home devices in India is gaining strong momentum, driven by rising awareness of connected living and increasing integration of Internet of Things (loT) technologies. Consumers are embracing products such as smart speakers, thermostats, security cameras, lighting systems, and voice assistants, as they offer enhanced convenience, energy efficiency, and improved home security. Urbanisation, coupled with a digitally savvy younger population, is further accelerating this trend, with smart appliances increasingly viewed as both lifestyle upgrades and status symbols.

Wearable Technology Growth

The wearable technology segment is witnessing robust expansion, led by increasing health awareness and a growing focus on personal well- being. Devices such as smartwatches and fitness trackers are becoming mainstream, offering users real- time insights into key health metrics including heart rate, activity levels, sleep patterns, and blood oxygen levels.

Hybrid and remote working have broadened the appeal of wearables beyond fitness tracking, with support for notifications, call management, and music control adding a layer of functional convenience.

Continuous technological advancements, including improved battery performance, enhanced sensors, and seamless smartphone integration, are strengthening product appeal. At the same time, a wide price spectrum ensures accessibility for mass-market consumers, while premium offerings cater to users seeking advanced features.

How

TVSE is Well Positioned

TVS Electronics is well positioned to benefit from the rapid expansion of the consumer electronics market through its growing Electronics Manufacturing Services (EMS) capabilities, advanced Surface Mount Technology (SMT) infrastructure, and engineering expertise. As demand for smart devices, wearables, and connected consumer products rises, the Company can support brands with localised manufacturing, design optimisation, and product assembly solutions.

Banking and Finance Industry

Indias banking sector has evolved into a global benchmark for financial resilience and digital capability, emerging as a key driver of the nations progress towards a developed economy. While challenges such as rising operational costs and evolving regulatory requirements remain, the sector has moved decisively from a reactive posture to one centred on innovation and integration. Indias financial transformation is now closely linked to the globalisation of its digital public infrastructure. UPI has extended beyond domestic usage to support cross-border transactions, reinforcing Indias position in the evolving global financial architecture.

Financial inclusion initiatives such as the Pradhan Mantri Jan Dhan

Yojana have progressed beyond account penetration to enable meaningful financial participation. This evolution is further supported by the rise of wealth-tech platforms, which are expanding access to investment opportunities across rural and underserved segments, making the ecosystem more inclusive and participative.

The RBI continues to play a critical role in maintaining systemic stability through a proactive regulatory approach. The sector remains well- capitalised and resilient, even amid global economic uncertainties.

Regulation is increasingly becoming predictive in nature, leveraging advanced analytics and data-driven insights to identify and mitigate risks at an early stage. This approach, combined with strong corporate governance and disciplined risk management practices, has strengthened the sectors ability to withstand external shocks while ensuring sustained credit flow to key sectors of the economy.

Differentiated banking models, including small finance banks and payments banks, have reached structural maturity, evolving into essential components of the financial system. These institutions effectively address high-volume, low-value transactions while expanding access to formal banking services.

The expansion of India Post Payments Bank has strengthened last-mile connectivity by transforming post offices into accessible financial service centres. This network, combined with the continued push towards a cash-lite economy, is enabling a more connected, inclusive, and resilient financial ecosystem.

TVSE is Well Positioned

As financial institutions continue to invest in digital infrastructure, branch modernisation, and financial inclusion initiatives, demand is increasing for secure transaction-processing hardware, authentication systems, and self-service banking solutions. TVS Electronics addresses these requirements through a diversified portfolio. The continued expansion of financial services into underserved and rural markets is creating additional opportunities for the Companys mobility and self-service offerings. Through products such as all-in-one tablets, kiosks, and transaction- enablement devices, TVS Electronics supports last-mile banking delivery models, helping financial institutions extend their reach while enhancing service accessibility and operational efficiency.

Retail Industry

Indias retail industry has transformed into a global powerhouse, projected to be valued at approximately USD 1.1 trillion in 2026. Growth is increasingly shifting beyond metropolitan hubs into Tier-2 and -3 cities, where rising incomes, rapid urbanisation, and a young, aspirational population are reshaping consumption patterns.

This shift has accelerated the adoption of quick-commerce models and omnichannel retail, blending physical and digital experiences.

As a result, consumers are moving steadily towards a more organised, technology-driven retail formats, driving greater formalisation across the industry.

Policy support has played a crucial role in this evolution. Government initiatives aimed at improving the ease of doing business, including simplified GST structures and the Jan Vishwas reforms, have reduced regulatory complexity. Liberalised FDI policies, including provisions for fully foreign-owned subsidiaries, have lowered entry barriers and enhanced investor confidence. These measures have positioned India as one of the most attractive and accessible retail markets for global players.

How TVSE is Well Positioned

TVS Electronics is favourably positioned to participate in Indias rapidly evolving retail technology ecosystem, leveraging its established product portfolio, manufacturing capabilities, and nationwide service network to support the increasing adoption of digital commerce and retail automation solutions. As consumption expands across Tier-2 and Tier-3 cities and retailers increasingly transition towards organised, technology-enabled formats, demand for transaction processing, inventory management, and customer engagement infrastructure continues to grow.

The ongoing formalization of the retail sector, supported by regulatory reforms, digital payment adoption, and rising investment in modern retail infrastructure, is further expanding the addressable market for the Companys products and services.

Shipping and Logistics Industry

Indias shipping and Logistics industry has emerged as a critical economic engine, projected to reach approximately USD 384 billion in 2026. The sector forms the backbone of trade and commerce, enabling the efficient movement of goods across domestic and international markets while strengthening economic resilience and supporting large-scale infrastructure development.

The sector is undergoing a significant structural shift, driven by agentic Al, digital twins, and autonomous supply chains. Platforms like the Unified Logistics Interface Platform (ULIP), combined with real-time predictive analytics, are improving operational efficiency, shortening transit times, and delivering end-to-end visibility.

At the same time, the emergence of hyper-local micro-fulfillment centres is transforming last-mile delivery, enabling faster, more responsive service as e-commerce demand grows across urban and rural regions alike.

Government-led initiatives continue to anchor this transformation, with the PM Gati Shakti National Master Plan and the National Logistics Policy accelerating infrastructure integration across dedicated freight corridors and multimodal cargo terminals. A parallel push towards green logistics is gaining traction, with electric vehicle fleets and energy-optimised routing increasingly deployed to reduce environmental impact.

How TVSE is Well Positioned

The structural evolution of Indias logistics and warehousing industry presents a significant opportunity for TVS Electronics to expand its footprint across technology infrastructure and support services. As logistics providers increasingly adopt automation, digital tracking, and integrated supply chain platforms, demand is rising for reliable data capture, labelling, and transaction- processing hardware across warehouses, distribution centres, and last-mile delivery networks. Supported by domestic manufacturing capabilities and an extensive nationwide service network, TVS Electronics offers an integrated value proposition that combines technology products with long-term support services, strengthening its position within Indias evolving logistics and supply chain landscape.

Government

Indian public sector undertakings (PSUs) continue to play a foundational role in the countrys economic framework, driving large- scale infrastructure development and supporting long-term social objectives. As of 2026, these state-owned enterprises remain dominant in strategic sectors such as energy, defence manufacturing, and transportation, serving as key vehicles for high-value capital expenditure. Their presence in remote and underserved regions also promotes balanced regional development and inclusive growth, reflecting a mandate that extends beyond profitability to safeguarding national interests and delivering essential services at scale.

The sector is undergoing significant transformation. The government is exploring a more flexible definition of government companies, allowing for a potential reduction of its stake to 26% in select listed entities while retaining management control. This shift aims to improve operational efficiency, introduce stronger private-sector governance practices, and unlock greater value from underutilised public assets. PSUs are simultaneously aligning with the Aatmanirbhar Bharat vision, with enterprises in electronics and semiconductors pivoting towards advanced manufacturing and global competitiveness.

The Government of India has adopted a more assertive fiscal approach to asset monetisation and disinvestment. In the Union Budget 2026-27, a consolidated target of Rs80,000 Crores has been set, marking a notable increase over previous estimates. This strategy is designed to expand private-sector participation, rationalise non-strategic holdings, and strengthen fiscal consolidation, while channeling resources into the record Rs12.2 lakh Crores infrastructure pipeline planned for 2026-27.

How TVSE is Well Positioned

As India accelerates investments in public infrastructure and digital governance, TVS Electronics is well positioned to benefit from rising demand for domestically manufactured technology solutions and managed services. In addition, the Companys extensive nationwide service and engineering network enables it to support large-scale deployments across diverse geographic locations. By offering installation, maintenance, and lifecycle management services,

TVS Electronics is well positioned to participate in long-term public sector technology programmes while generating recurring service revenues and strengthening customer relationships.

Electronics Manufacturing Services

Indias electronics manufacturing industry is undergoing a decisive transformation, driven by supportive government policies, rising domestic demand, and a focus on self- reliance under the Aatmanirbhar Bharat initiative. The Governments vision is to position India as a global electronics production hub by strengthening local capabilities through innovation, infrastructure development, and closer collaboration with private players.

As the sector expands, demand is expected to grow significantly, reaching USD 240 billion by 2030, in line with the countrys ambitious production targets. This growth trajectory is being enabled by targeted policy interventions such as the PLI schemes, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the development of Electronics Manufacturing Clusters (EMCs).

How TVSE is Well Positioned

TVS Electronics is strategically positioned to capitalise on Indias rapidly expanding electronics manufacturing ecosystem, leveraging its growing manufacturing capabilities to participate in one of the countrys most significant industrial growth opportunities. Beyond its traditional presence in IT peripherals, the Company is increasingly addressing opportunities in higher-value segments such as automotive electronics, telecommunications, and industrial equipment manufacturing.

Complementing its production capabilities, TVS Electronics offers Design for Manufacturability (DFM) expertise and an extensive nationwide service network, enabling customers to access end-to- end support across the product lifecycle. This integrated approach strengthens the Companys competitive positioning and allows it to benefit from the ongoing shift towards domestic electronics manufacturing and supply chain localisation in India.

Green Energy - Solar

Indias solar industry is advancing rapidly, driven by policy support and declining technology costs. As of April 2026, the country has emerged as the worlds third-largest solar power producer, with cumulative installed capacity reaching 150.26 GW. This milestone is part of a broader renewable energy surge, with India achieving 50% of its total power capacity from non-fossil fuel sources as early as June 2025, well ahead of its original timeline.

This strong momentum is backed by large-scale government initiatives, particularly the PM Surya Ghar: Muft Bijli Yojana, which has been allocated Rs22,000 Crores in the Union Budget 2026-27 to support rooftop solar adoption across one Crore households. At the manufacturing level, the PLI scheme has significantly expanded domestic solar module capacity from just 3 GW to 172 GW, marking a major leap towards self-reliance. Policy focus is now shifting upstream to strengthen capabilities in polysilicon and wafer production, further solidifying Indias position in the global solar value chain.

As energy demand continues to grow faster than in any other major economy, the sector is evolving to meet these needs through round-the-clock (RTC) renewable energy solutions. To enhance grid reliability, the government has increased support for Battery Energy Storage Systems (BESS), allocating Rs1,000 Crores in viability gap funding. This integration of storage with solar capacity is critical to ensuring consistent and sustainable energy supply.

Indias long-term vision remains anchored in its commitment to achieve net-zero emissions by 2070, alongside a near-term goal of 500 GW of non-fossil fuel capacity by 2030. Continued innovation, expanding Green Energy Corridors, and growing global investor interest position Indias solar sector to play a defining role in national energy security and the global transition to clean energy.

* How TVSE is Well Positioned

As the country continues to expand its solar power capacity and promote rooftop solar adoption through various initiatives, the need for reliable maintenance, monitoring, and lifecycle support services is increasing across both utility-scale and distributed solar assets.

The Company addresses this opportunity through its Green Energy Solutions vertical. With experience supporting solar installations across multiple locations,

TVS Electronics offers specialised field service capabilities for solar PV systems, inverters, and associated equipment, helping asset owners improve uptime and operational efficiency.

Green Energy - Electric Vehicles

Indias EV sector is accelerating rapidly, driven by policy support, rising consumer demand, and a push towards technological self-reliance. A key enabler has been the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme, which replaced FAME II with an outlay of Rs10,900 Crores. This policy momentum is reflected in market performance, with EV retail sales reaching 24.52 lakh units in 2025-26, marking a 24.6% year-on-year growth. Electric two-wheelers continue to lead adoption, crossing 14 lakh units, while electric passenger vehicles recorded a sharp 83.6% increase, indicating a broader shift in mobility preferences.

Looking ahead, the EV market is projected to reach approximately USD 110.7 billion by 2029, expanding at a CAGR of nearly 20%. This expansion is increasingly driven by the total cost of ownership (TCO) advantage, as lower operating and maintenance costs, combined with rising fuel prices, make EVs a more practical choice for both personal and commercial users.

Charging infrastructure has expanded significantly, with oil marketing companies (OMCs) transforming traditional fuel stations into integrated energy hubs equipped with fast-charging and battery- swapping capabilities.

The industry is strengthening through supply chain localisation and manufacturing efficiency. The PLI scheme for Advanced Chemistry Cells (ACC) is accelerating domestic battery production, reducing dependence on imports. In parallel, the Battery Waste Management Rules (2025) are establishing a circular economy framework, mandating a 90% recovery rate for battery materials by 2027. These measures, along with the emergence of a robust component ecosystem, are enhancing Indias competitiveness as a global EV manufacturing hub.

How TVSE is Well Positioned

TVS Electronics is strategically positioned to participate in Indias rapidly expanding electric vehicle (EV) ecosystem, leveraging its manufacturing capabilities and technology solutions to address emerging opportunities across the EV value chain. As EV adoption continues to accelerate, supported by government initiatives such as the E-DRIVE scheme, demand is rising for power management systems, electronic components, sub-assemblies, and charging infrastructure.

In addition, the expansion of EV charging networks and integrated energy infrastructure across the country is creating a significant opportunity for the Companys Green Energy Solutions business.

Company Overview

Founded in 1986, TVS Electronics Limited (‘TVSE or ‘the Company) has evolved into an established player in the IT peripherals and consumer electronics landscape. Over the decades, the Company has cultivated a robust and diversified portfolio, establishing a strong presence across two primary business verticals: Products & Solutions and Customer Support Services.

TVSE follows a lifecycle management approach, integrating product design, manufacturing, deployment, and aftersales support. From warranty services to end-of-life management, this integrated model ensures a consistent and

dependable customer experience at every touchpoint.

Central to its innovation is the Products & Solutions Group (PSG), which drives the design, development, assembly, and marketing of an extensive range of technology solutions. Its portfolio spans multiple categories, including input devices such as mechanical and membrane keyboards, optical mice, and advanced barcode and document scanners. In the computing segment, the Company offers point-of-sale systems, handheld computers, tablets, and electronic cash registers. Its validation devices include cash counters and biometric solutions, while its output devices range from impact and thermal printers to barcode and label printers, complemented by essential consumables.

The Customer Support Services (CSS) division delivers solutions tailored for both OEMs, Enterprises and end-users. Its offerings encompass break-fix services, repair engineering, installations, product demonstrations, extended protection plans, IT infrastructure management, remote diagnostics, call centre operations, green energy initiatives, and e-waste management.

TVSE also demonstrates strong capabilities in Electronics Manufacturing Services (EMS). The Company offers end-to-end solutions that include product design and development, sourcing, printed circuit board assembly, system integration, testing, logistics, and aftersales services.

Business Segments

Products & Solutions Group (PSG)

The PSG delivers a portfolio across four segments, each addressing specialised industry requirements.

Retail Hardware

The Company provides integrated solutions that enable seamless invoice and bill printing, efficient inventory and sales management, GST and tax reconciliation, and secure payment processing. These offerings are enhanced by the inclusion of POS terminals, tablets, and All-in-One (AIO) systems, and are complemented by its proprietary retail billing platform, TVS E-Pay, delivering a unified commerce experience.

Shipping & Logistics

TVSE supports logistics and supply chain ecosystems with advanced solutions for tracking and tracing, including Time-for-Trust (T4T) solutions and diverse AIDC products, real-time inventory management, and high- precision label printing, enhancing operational visibility and efficiency.

Government Services

The Company caters to critical public service requirements through solutions designed for ticketing, documentation, registration, and receipt printing, including handheld devices (HHDs) and specialised applications for India Post operations.

TVSEs manufacturing and assembly operations are anchored at its facility in Tumakuru, where precision engineering meets scalable production. The Company continues to strengthen its product management capabilities and engineering expertise while expanding its end-to-end solutions portfolio. Its strategic emphasis lies in delivering bundled offerings that integrate hardware, software, and services, enabling highly customised solutions for diverse customer segments.

The Company has consistently evolved its product portfolio in response to dynamic market shifts. The growing consumer electronics landscape, supported by rising disposable incomes, improved purchasing power, and wider product accessibility, presents strong growth potential. In alignment with the Government of Indias Make in India initiative, TVSE has taken decisive steps to enhance cost efficiencies and reduce import dependency through local sourcing and backward integration.

In recent years, TVSE has broadened its product portfolio with the introduction of touch display monitors, 2D embedded barcode scanners, advanced cash counting machines, and high-speed all- in-one receipt printers. Its range also includes electronic cash registers, self-checkout kiosks, and indigenously developed touch POS systems, alongside newly integrated tablets, AIO systems, AIDC products, HHDs, laser printers, and scanners.

The Company is positioning itself as a single-point solutions provider, leveraging emerging technologies to deliver integrated solutions under one framework, with an emphasis on customisation and execution.

TVSE continues to build on its distributor-led channels while expanding into AIDC partner ecosystems. The Company is accelerating its Key Accounts strategy, deepening engagement with these key retail accounts and enhancing brand visibility across priority markets. Strategic collaborations and a focus on automation in identification and data capture underpin its drive towards sustained innovation and long-term growth.

Growth Drivers

Continuous expansion ofthe product and solutions portfolio to integrate POS terminals, tablets, AIO systems, T4T solutions, AIDC products, HHDs, laser printers, and scanners to address evolving and diverse customer requirements Strengthened Key Accounts presence through engagement with top-tier retail accounts and strategic alliances Transition towards a single-point solutions model, integrating billing hardware, software, Al-driven analytics, terminal management, and loT-enabled retail solutions

Entry into the AIDC segment with industrial-grade mobile computing, handheld devices (HHDs), and advanced track-and-trace (T4T) capabilities. Brand positioning supported by deep domain expertise, enabling expansion into new industry verticals Accelerating digitalisation driving increased adoption of POS systems and billing software solutions

Rising demand for bundled, integrated solutions strengthening value delivery

Extensive and resilient distribution network, reinforced by a dedicated internal sales force Strong alignment with the Make in India initiative through localisation and backward integration Leadership in Government and BFSI segments through indigenised product offerings Growth in e-commerce driving demand for automation, tracking, and digital infrastructure solutions The Engineering Development Centre in Bengaluru enabling rapid product innovation and continuous value engineering across the portfolio

Customer Support Services (CSS)

Within its service vertical, TVSE delivers a comprehensive and future-ready portfolio spanning multiple specialised domains, including:

TVSEs Field Support Services set a strong benchmark in break-fix support and lifecycle management. Backed by a strong legacy of reliability, the Company offers end-to-end support for a wide range of IT and payment devices, covering installation to rapid issue resolution. Central to this capability is its proprietary ServiceTec Digital Platform (SDP), built on intelligent scheduling, stringent compliance protocols, and a customer-centric framework that ensures service efficiency and a consistent user experience.

Through its IMS portfolio, TVSE delivers enterprise IT support across workplace services, data centre and cloud environments, network management, and cybersecurity. At the core of this offering lies TVSE Aikya, a cognitive AlOps platform designed to shift enterprises from reactive maintenance to predictive,

insight-driven operations. The platform enhances user experience, strengthens system reliability, and enables high levels of automation, allowing organisations to operate with greater agility and precision. A state-of-the-art NOC & SOC facility has been established in Chennai to support enterprise customers.

TVSE has positioned itself to capitalise on the acceleration in electric mobility and renewable energy adoption. Its established ecosystem, trusted partnerships, and strong brand equity provide a solid foundation for sustained growth in these sectors.

The Company plays a critical role in bridging the gap between brands and end-users, particularly in the post-warranty segment, reinforcing its leadership within Indias service ecosystem.

Growth Drivers

Deep domain expertise across diverse product categories, enabling efficient lifecycle support and end-of-life management

Transition towards a unified aftersales lifecycle platform integrating partners, service networks, logistics, and spare parts management Proprietary digital Al OPS platform enabling reliable, efficient and experience-centric enterprise IT management

CRM capabilities powered by Al and ML, delivering consistent and personalised customer engagement

Solar & Green Energy Services

TVSEs Green Energy Business Unit supports the transition towards sustainable and energy-efficient solutions. The unit offers consultancy for solar projects, operation and maintenance services, and infrastructure development for EV charging and battery swapping.

GEBU ensures optimal performance and consistent energy output across solar installations, while also supporting the expansion of public EV charging networks.

Electronics Manufacturing Services

TVSE offers a deeply integrated, comprehensive suite of end-to-end EMS solutions spanning product design, development, strategic component sourcing, manufacturing, high-density PCBA, full turnkey box build, rigorous functional testing, global logistics, and aftersales support.

The Company has commissioned a facility in Tumakuru, Karnataka, strengthening its manufacturing footprint. Equipped with advanced Surface Mount Technology (SMT) lines, this facility reflects TVSEs commitment to precision engineering. The integrated ecosystem supports seamless supply chain management, high-quality PCB assembly, rigorous testing, and efficient system integration, enabling the Company to serve both domestic and global markets with agility and scale while delivering a truly unified, single-partner manufacturing experience.

Growth Drivers

Expanding opportunities in renewable energy driven by Indias increasing focus on sustainability and clean energy adoption Strong growth potential in EV and solar segments, with focus on operations and maintenance, EV charging infrastructure, and battery swapping solutions

>> Strengthened multi-layer and high-precision PCBA capabilities that cater to dense, complex electronic architectures across high-reliability applications

Strong tailwinds from the Government of Indias Make in India initiative, driving demand for domestic manufacturing, local sourcing, and deep component-level localisation

Expansion into power electronics, leveraging synergies with solar business relationships and advanced energy management systems Diversification across multiple industries including industrial electronics, consumer electronics, telecom, IT peripherals, automotive, and EV, unlocking massive sector expansion opportunities Uniquely positioned as an integrated, end-to-end EMS partner offering absolute accountability from design to logistics and aftersales support

Repair & Refurbishment Management Services

The Companys RMS focuses on extending product lifecycles through advanced L3 repair capabilities, detailed diagnostics, and precision board-level servicing for critical components such as PCBs, complex PCBA assemblies, and display panels. Its sustainability-focused lifecycle extension and refurbishment solutions cater to secondary markets, supporting sustainability and circular economy principles across an expanded product footprint that includes EV products, servers, laptops, payment devices, speakers, and peripherals.

E-Auction

TVSE operates Auction India, a dedicated digital platform for surplus asset management. Designed for B2B clients, it enables transparent and competitive disposal of excess inventory, scrap, and used equipment, ensuring optimal value realisation.

Advanced technical expertise in diagnostics and L3 repairing of complex PCBA assemblies, including server and laptop motherboards Rapidly scaling infrastructure to meet the increasing demand for EV charger and comprehensive EV product repair alongside manufacturing capabilities

Growth in display repair and board-level servicing for payment devices, speakers, and peripherals supported by clean-room environments and specialised diagnostics

Rising market demand for sustainability-focused lifecycle extension services that maximise the value of multi-vendor hardware portfolios

Transition from offline to online disposal models, enhancing transparency and price discovery

? Focus on salvage and secondary steel disposal segments

Regulatory push towards digital e-waste management, unlocking new growth opportunities

TVSE Digital

TVSE Digital reflects the Companys pivot towards a digitally integrated enterprise, with technology as a core driver of operational excellence and scalable growth. The in-house platform has been architected to function as a cohesive digital backbone across business verticals, while retaining the flexibility to operate as modular, standalone systems tailored to the specific requirements of individual business units.

Originally conceived as a solution for electronics repair services, the platform has evolved into a broader digital ecosystem. It now extends its capabilities to IT computing and banking domains, facilitating accelerated onboarding, optimised cost structures, and seamless connectivity across an extensive nationwide partner network.

Within manufacturing, the platforms enhanced Manufacturing Execution System (MES) capabilities deliver real-time visibility into production cycles, quality parameters, and programme execution. These insights enable OEM partners to drive process efficiencies, strengthen quality assurance, and exercise greater control over operational outcomes.

The platform also enables the deployment of bespoke digital solutions that integrate product SKUs directly into customer environments. This capability reinforces the Companys transition from a conventional hardware provider to a value-added solutions partner, delivering integrated offerings aligned with evolving customer expectations.

Sustained investment in digital infrastructure and innovation continues to strengthen TVSEs technological foundation. This helps in enhancing agility, improving execution efficiency, and positioning the Company to capitalise on opportunities in a digital-first business landscape.

Financial Overview

During 2025-26, TVSE reported a total revenue of Rs455 Crores, marking a 6% YoY growth compared to 2024-25. Revenue from the ‘Products and Solutions segment rose by 3% to Rs9 Crores, while the CSS segment also rose by 13%, amounting to Rs15.6 Crores.

Key Ratios

Risk Management

TVSE recognises risk management as a critical enabler of long-term sustainability and organisational resilience. As an integral part of its strategic planning framework, the Company follows a structured approach to identifying, evaluating, and mitigating risks that may impact its operations or strategic objectives.

To reinforce governance and ensure effective oversight, the Risk Management Committee continuously monitors risk exposure and drives mitigation initiatives. Reporting directly to the Board of Directors, the Committee ensures that risk management remains embedded in the Companys highest level of decision-making and oversight.

By integrating risk management into its core organisational processes, TVSE enhances its ability to anticipate emerging challenges, respond with agility, and protect stakeholder value. During 2025-26, the Company identified and addressed several critical risks, further strengthening its operational resilience and strategic preparedness.

Human Resources

TVSE recognises its workforce as a critical enabler of sustained business performance and long-term value creation. The Company remains committed to fostering an inclusive, high- performance work environment that supports continuous learning, professional growth, and employee well-being. It attracts and retains a diverse talent pool through competitive, industry-aligned compensation structures and clearly defined career progression pathways, supported by progressive HR practices.

The organisational culture is anchored in integrity, collaboration, innovation, and customer-centricity, reinforced through leadership actions and day-to-day operations. The Company places emphasis on teamwork, knowledge sharing, and capability building, enabling employees to enhance their skills and contribute meaningfully to organisational objectives.

TVSE has institutionalised structured feedback mechanisms, including surveys, town halls, and an open-door policy, facilitating dialogue between employees and management across monthly, quarterly, and annual cycles. The Company also maintains a focus on recognising and rewarding employee contributions, fostering a culture of appreciation and motivation.

As of March 31, 2026, TVSE employed 1000+ individuals, reflecting a stable and committed workforce aligned with the Companys growth ambitions.

Internal Control Systems and their Adequacy

TVSE maintains an internal financial control framework that ensures the accuracy and reliability of its financial reporting. During 2025-26, the Company consistently operated in accordance with its defined control standards, demonstrating sustained effectiveness across all key processes. These standards are aligned with the essential components of internal control as outlined in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Throughout the year, the Companys internal control systems remained robust, with all material aspects functioning effectively and as intended.

Cautionary Statement

Certain statements in the Management Discussion and Analysis may be considered forward-looking under applicable securities laws and regulations. Actual outcomes may differ materially from those expressed or implied in such statements.

These forward-looking statements relate to the Companys growth strategy, financial performance, product potential, and development initiatives, and are based on current assumptions and expectations regarding future events. The Company does not undertake any obligation to publicly update, revise, or modify these statements in light of new information or subsequent developments.