Updater Services Ltd Management Discussions

Global Economy

During the year the global economy showed mixed performance, marked by uneven momentum across regions. The United States stood out with strong consumption and a solid 2.8% growth, while key economies in Asia and Europe, like China and Germany, underperformed due to weak domestic demand and manufacturing slowdowns.

Inflation gradually cooled through the year, though progress varied—core goods prices eased, but services inflation remained sticky, especially in the U.S. and euro area. Labor markets began to normalize, with wage growth showing early signs of moderation. Meanwhile, trade policy uncertainty surged, fueled by new tariffs and geopolitical tensions, tightening financial conditions in emerging markets and strengthening the U.S. dollar. Political instability in parts of Asia and Europe also shook investorconfidence, to an already uncertain macroeconomic environment The year 2024 was shaped by a mix of economic and geopolitical developments that impacted global stability. While the U.S. economy remained resilient, several advanced and emerging economies faced headwinds from weak industrial activity, sluggish consumption, and political uncertainty. Trade tensions escalated, with new tariffs and shifting alliances fueling market volatility. Inflation began to moderate globally, though services kept pressures alive in some regions. At the same time, global productivity growth remained tepid, with structural bottlenecks, underinvestment in key sectors, and ongoing adjustments from the pandemic era continuing to weigh on output efficiency, especially in manufacturing-heavy economies.

Outlook

Looking ahead, the global economy is expected to maintain a modest growth pace of 3.3% in both

2025 and 2026, remaining below its pre-pandemic average. While the U.S. is projected to continue showing robust demand and investment momentum, growth in other advanced and emerging economies remains uneven, with Europe facing manufacturing slowdowns and China grappling with weak consumer confidenceand a sluggish property market. Inflation is gradually retreating, aided by cooling labor markets and easing energy prices, though core services inflation remains high in some regions

Monetary policies are diverging, with some central banks cautious about easing too quickly.

Trade policy uncertainty and geopolitical risks - especially in the Middle East and Europe - add to the fragile outlook, while risks of renewed inflation or financial instability remain elevated. Medium - term growth prospects remain dim, and the IMF emphasizes the need for structural reforms and multilateral cooperation to strengthen resilience and lift potential output.

Sources: IMF

The Indian Economy

During the Year the Indian economy maintained its position as the fastest-growing major economy, with real GDP expanding by 6.4% despite a slowdown from the previous three years of over 7% growth. The moderation was mainly driven by weaker investment momentum, particularly in gross fixed capital formation, which decelerated due to reduced capital expenditure by both Union and State governments. While private sector investment remained tepid, high-frequency indicators showed signs of a rebound in the second half of the year

Consumer demand was mixed - urban consumption gained traction, buoyed by e-commerce and a modest pickup in demand for household staples, while rural demand improved following a strong kharif harvest and higher rabi sowing. Headline inflationeased towards the end of the year, helped by seasonal declines in fruit and vegetable prices, yet food inflation remained persistently high, with some essential items witnessing double-digit price increases This, combined with rising rural wages and corporate salary revisions, raised concerns about potential second - order inflation effects. Despite global headwinds and geopolitical tensions, Indias services sector remained robust, green energy investments surged and the economy continued to show underlying resilience through the year.

Outlook on the Indian Economy

Looking ahead, the Union budgets strategic tax stimulus to boost economic activity. The tax exemptions announced in the budget will increase consumer spending and may boost GDP by 0.6% to 0.7%. Evolving global trade relations are expected to influence Indias economic trajectory: Indias . strong trade relations with the United States, which is also the nations largest trading partner,will likely

*Note these estimates are on Current Year Basis and not Financial Year basis impact the nations trade balance and economic growth significantly due to the shifting global trade landscape. Q4 25 growth and y. the high-frequency indicators such as e-way bills, toll collections, and petroleum consumption point toward a broad-based pickup in activity. Corporate earnings, particularly in the banking, finance, and insurance sectors, are anticipated to improve, with unlisted firms also expected to post robust revenue growth. The rural economy isbenefiting from a strong agricultural output, while urban consumption is being boosted by rising disposable incomes and growing demand in housing and e-commerce. Inflation is likely to remain within the RBIs comfort zone, though food prices will require close monitoring due to their volatility. On the investment front, the governments push for infrastructure and renewable energy is set to continue, with the green energy sector expected milestones in solar, wind, and achievesignificant nuclear capacity.

RBI Bulletin/Published reports ear 2024-25 is

Segment Wise Performance

UDS Operations can be broadly classified under the following categories:

1. Integrated Facilities Management (IFM) – 66% of Revenue in FY 2024-25

Businesses are increasingly turning to the outsourcing of facilities management services as a strategic approach to enhance their competitive edge and achieve goals related to market retention and leadership. Our long-standing presence in India has provided us with deep market insights, which we believe have been key contributors to the growth ouroperationsand

In the Integrated Facilities Management (IFM) and Other Services segment, our Company operates across a diverse range of service lines. These include soft services, production support services, engineering services, warehouse management, pest control, and horticulture - each of which has been developed organically over time. Additionally, we have expanded our offerings to include the procurement and supply of consumables, machinery, and related items catering to the facilities management industry.

As of FY 2024-25, we had a presence across 35 locations in India, serving a wide spectrum of industries such as manufacturing, automotive, IT/ITeS, healthcare, education, BFSI, consumer products, FMCG, and retail. The performance of the Integrated Facilities Management (IFM) segment for thefinancial below:

	Consolidated (In Millions)
Particulars	March 31, 2025	March 31, 2024
Total Income	18,584.69	17,049.13
Profit Before Tax	1,178.36	525.65
Segment Assets	13,499.90	13,277.24
Segment Liabilities	4,506.05	5,325.43
Capital Employed	8,993.85	7,951.81

2. Business Support Services (BSS) – 34% of Revenue in FY 2024-25 Sales Enablement Services:

Denave India Private Limited and Athena BPO Private Limited, subsidiaries of Updater Services Limited, provide services to global clients across various industries such as information technology,

IT-enabled services, telecommunications and more.

These services are delivered through global delivery centres located in India, Singapore, Malaysia, the UK, and South Korea, as well as through partner networks in other regions. Their BPO offerings include both inbound and outbound telecalling, with a strong focus on chatbot and virtual assistant support. The revenue for the FY 2024-25 is 70% of the total revenue derived from Business Support Services (BSS) segment.

Audit & Assurances:

Matrix Business Services India Private Limited, a subsidiary of Updater Services Limited, offers a range of services including supply chain audits—such as warehouse and depot audits, distributor audits, and retail point audits. Additionally, the company provides back-office support for global clients, focusing on marketing program management and channel partner claim processing. The revenue for the FY 2024-25 is 8% of the total revenue derived from Business Support Services (BSS) segment.

Employee Background Verification Check Services:

Matrix Business Services India Private Limited, a subsidiary of Updater Services Limited, delivers services such as address and various verification identity verification, verification of educational qualifications, employment history checks, and legal case history screening, among others. In the fiscal year 2024–25, these services accounted for 6% of the total revenue within the Business Support Services (BSS) segment. and

Mailroom Management and Niche Logistics and Transport Solutions:

Avon Solutions & Logistics Private Limited, a subsidiary of Updater Services Limited, is a leading service provider in India and a pioneer in the mailroom and asset movement sector. Building on this strong foundation, the company also offers services such as office supplies management, courier and transportation, and warehouse handling, among others. In the fiscal year 2024 25, these services contributed 11% to the total revenue of the Business Support Services (BSS) segment.

Airport Ground Handling Services:

Global Flight Handling Services Private Limited, a subsidiary of Updater Services Limited, provides a range of services including baggage and cargo handling, passenger movement, and aircraft turnaround. The company also offers meet-and-greet services at various airports across India and currently operates at 21 airports. Additionally, it runs an advanced aviation training center under the Global School of Aviation, aimed at developing a skilled workforce for the industry. For the fiscal year

2024–25, these services accounted for 5% of the total revenue generated from the Business Support Services (BSS) segment.

	Consolidated (In Millions)
Particulars	March 31, 2025	March 31, 2024
Total Income	9,535.36	8,140.31
Profit Before Tax	576.37	488.21
Segment Assets	4,775.16	4,486.43
Segment Liabilities	2,288.10	2,198.47
Capital Employed	2,487.06	2,287.96

Market Opportunities

The company remains mindful of the environment in which it operates, the broader business context, and emerging trends that it believes could influence our future operations. Some of these key trends include:

Increased Focus on Core Business Functions:

Organizations across sectors are increasingly outsourcing non-core operations such as facility management, housekeeping, security, and support services to specialized vendors. This allows them to allocate internal resources more efficiently on strategic priorities like innovation, customer experience, and growth. IFM providers are stepping in as trusted partners, delivering reliable, end-to-end service solutions that reduce management complexity for businesses.

Rapid Urbanization and Infrastructure Development: With ongoing development in urban infrastructure and a boom in commercial and industrial real estate, especially in emerging economies, the demand for facilities management and support services is rising. Large campuses, business parks, retail malls, and logistics hubs require continuous upkeep, operations support, and compliance management - areas where IFM players add significant value.

Digitalization and Smart Technologies: The integration of smart technologies like Internet of Things (IoT), Building Management Systems

(BMS), AI-based energy monitoring and mobile-driven service requests is revolutionizing how facilities are managed. These tech-led solutions enable real-time insights, predictive maintenance and enhanced user experiences. IFM firms that embrace digital transformation are well-positioned to offer differentiated and value-driven services.

Cost Optimization and Flexible Workforce Solutions: In uncertain or cost-sensitive economic environments, businesses look for ways to reduce fixed costs. Outsourced and business services provide a variable cost model, reducing the burden of in-house hiring, training, and supervision. Service providers also offer flexibility in workforce deployment, allowing clients to scale up or down based on demand fluctuations.

Regulatory and Labor Law Formalization:

Increasing enforcement of labour laws, occupational safety norms, and statutory compliance (such as PF, ESI, minimum wages, and contract labour regulations) is making it or informal players to difficult operate. Organized IFM and business service providers, with systems in place to ensure compliance and transparency, are gaining credibility and market share.

Shift in Global Manufacturing to India: Amid rising trade tensions, higher tariffs and a global push to diversify supply chains, many multinational companies are reducing their reliance on China and turning to India as a key manufacturing destination. The Indian governments push through initiatives like

‘Make in India and production-linked incentives

(PLIs) is further accelerating this shift. As a result, several new industrial and manufacturing facilities are being established across the country.

These large-scale operations require professional management of infrastructure, utilities, safety and workforce amenities creating a significant growth opportunity for Integrated Facilities Management (IFM) and business services providers.

Rising Demand for Smarter, Tech-Enabled Sales Operations: In todays competitive landscape, organizations are under pressure to drive revenue growth while improving productivity and customer experience. This has led to a surge in demand for Sales Enablement

- a function that equips frontline teams with the right tools, content, training and insights to sell more effectively. With increasingly complex buyer journeys, remote selling models, and data-driven decision-making, companies are investing in digital platforms and business services that streamline sales processes and enhance customer engagement. This growing need for scalable, tech-enabled sales support-ranging from CRM management to lead qualification and IFM performance analytics-is fuelling the expansion of the sales enablement industry.

Increased Emphasis on Workforce Credibility and Compliance: As organizations scale and workforce models become more distributed - with gig workers, remote employees and third-party staff - ensuring employee authenticity and compliance has become a top priority. Background verification services are seeing strong demand across sectors, driven by the need to mitigate risks related to fraud, safety, and data security. Companies are seeking comprehensiveverificationsolutions that cover identity, education, employment history, criminal records and even social media behaviour. With rising regulatory scrutiny and a heightened focus verifica is onworkplaceintegrity,background becoming a critical component of the onboarding process, creating growth opportunities for professional business service providers.

SWOT Analysis Strengths:

Established Market Position: With 40 years of experience, UDS has evolved into a prominent player in the Integrated Facilities Management (IFM) and Business Support Services (BSS) sectors.

Diverse Service Portfolio and bouquet of service offerings: UDS offers a comprehensive range of services like housekeeping, pest control, mechanical, electrical, plumbing, production support and business support services in the areas of sales enablement, background verification, audit and assurance, field marketing service, call centre operations etc., catering to all sectors.

Technological Leadership: Leveraging automation, digital tools and data analytics to enhance operational and cost efficiency in an already highly cost-competitive market.

Quality Service: Retention of over 95% of clients for over 5 years through the quality services helps sustainable growth.

Weaknesses:

Cost Pressures & Competition due to industry fragmentation: Intense competition leading to pressure on pricing and margins from unorganised sector and competition

High Employee Attrition:High attrition among staff could lead to increased hiring costs and affects service consistency.

Slow Technology Adoption Among Clients:

While UDS may invest in technology driven solutions, client readiness to adopt services can be limited, slowing return on innovation efforts.

Inflexible Service Contracts: Rigid contract terms may make it difficult to adapt to changing client needs or offer flexible solutions, limiting the ability to upsell or cross-sell services.

Opportunities:

Rise in Demand for Integrated Solutions:

Companies are increasingly seeking comprehensive, integrated solutions for facility management, security, cleaning and other business services, creating affected its results ofopportunities for providers to bundle and deliver end-to-end services.

Increased Demand for Specialized IFM Service offerings: With UDS capabilities across multiple segments, it can tap into the growing demand for specialized IFM services, offering tailored solutions for sectors like healthcare, data centers, and manufacturing, ensuring industry-specific needs being met and operational efficiency.

Growth of Real Estate, IT Parks, GCCs, E-commerce and Warehousing: efficiency, reducedThe boom in segment has createdopportunities for not just IFM, Business Support Solutions but also our Niche Logistics business aiming provide specialized services for this segment.

AI and Technology being adopted in Sales Enablement: With the growing adoption of AI and machine learning in sales, our ability to leverage these technologies to optimize sales strategies and provide data-driven insights positions us as a competitive advantage, attracting clients looking for innovative and efficient sales enablement solutions.

Threats:

Economic Downturns: Economic recessions can lead to reduced spending by corporates on services.

Further Industry Fragmentation: Increased Industry Fragmentation would lead to margins to further fall due to increased pricing pressure and unviable contracts.

Risk of Changes in Labor Laws: Frequent changes in labour laws and regulations pose a risk to UDS, as non-compliance or delayed adaptation to new labour requirements can lead to legal issues, increased costs, and potential disruptions in service delivery.

Risk of Obsolescence: Rapid AI advancements may render traditional sales enablement and background verification methods outdated, pushing companies to adopt new tech or risk losing efficiency and relevance in a competitive market.

Significant Factors influencing Results of Operations and Financial Condition

The company believes that the following factors have significantly and financial condition during the periods under review and may continue to affect our results of operations and financial condition in the future:

Margin Expansion Driven by Strategic Contract Rationalization and Tech Enablement: We have seen strong improvements in our EBITDA margins driven by strategic decisions to exit low-margin and unviable contracts, allowing us to focus on more profitable contracts. This margin been further supported by our continued investment in technology and process automation, which have manual enhanced operational dependencies, and streamlined service delivery. These initiatives have collectively contributed to a consistent upward profitability . Going trend in forward we continue to maintain the current margins and grow.

Market Leadership in Industrial IFM: Industrial FM, which includes managing customer manufacturing plants, warehouses, and other industrial-related facilities, continues to be a driver significant for us. The IFM segment as a whole is highly diversified across various customer sectors, which reduces concentration risk. This strong focus on Industrial FM sets us apart from other players in the market, acting as a key differentiator. We expect this contribution to remain robust and continue to be a competitive advantage in the years ahead.

Launch of GenAI-Enabled Sales Intelligence Platform: Denave our wholly owned subsidiary launched our GenAI-enabled Sales Intelligence service with a major global conglomerate during the year, marking a shift towards a more technology-driven approach. This transition from people-heavy to tech-led processes has significantly enhanced operational efficiency and is expected to continue driving scalability and performance.

Airports Business Achieves Break-Even, Poised for Strong Profitability: Our airport ground handling business has gainedsignificanttraction, with many contracts now actively generating revenue. We achieved break-even in this segment in FY25, marking a key milestone in its turnaround. With operational stability in place and contracts maturing, we expect substantial improvement in profitability from the Airports business in the coming years. We are currently present in 23Airports as on Date.

Market Reach with Logistics and Warehousing Services: Avon has now increased its total addressable market size by foraying into logistics and warehousing, in addition to its existing mailroom management services. The booming e-commerce sector in India presentssignificantopportunity, as the growing demand for efficient logistics and storage solutions becomes critical to e-commerce operations. With this strategic pivot, Avon is poised to capitalize on this rapidly expanding sector, positioning itself . The entry significantgrowth for into full truck and part truck transportation, logistics and warehousing opens up a large runway for expansion, tapping into new business opportunities and enhancing the companys service portfolio to meet evolving market demands.

One point of contact for various Services: UDS Group with related other companies, the entire gamut of services starting from security, housekeeping and facility management, mail room management, courier, production support, warehousing, transport &logistics, audit and assurance, sales enablement etc., are all provided under one umbrella of UDS and provides customers ease of doing business.

What Value is UDS bringing to the Industry?

UDS is redefining the standards of Integrated Facilities Management (IFM) and Business Support Services (BSS) by offering a unique blend of deep domain expertise and cutting-edge technology. By integrating advanced solutions such as AI-powered sales enablement and data-driven decision-making into its operations, UDS helps clients drive operational efficiency, lower costs, and implement sustainable practices. This holistic approach not only simplifies vendor management but also ensures consistency and quality across diverse service needs.

Going beyond traditional service models, UDS is delivering high-impact value through technically complex contracts in critical areas like Mechanical, Electrical, and Plumbing (MEP) and Industrial Facility Management for manufacturing facilities.

These contracts reflect UDSs capability to manage intricate, high-stakes environments with precision and reliability. On the BSS side, UDS offers revenue-enhancing services like sales enablement, along with essential support offerings such as employee background verification and mailroom management. This end-to-end offering positions UDS as a trusted, strategic partner capable of supporting both the core operations and growth agendas of modern enterprises.

Industry Structure and Developments Market Opportunities and Industry Trends (IFM)

The India Integrated Facility Management Market size is estimated at USD 4.78 billion in 2024, and is expected to reach USD 7.76 billion by 2029, at a

CAGR of 10.18% during the forecast period (2024-

2029).

The market size reflects the revenue generated by market vendors offering Integrated facility management services such as Hard FM and HVAC, and Soft FM services to various End-User industries, including Commercial, Retail, Restaurants, Manufacturing and Industrial, Government, Infrastructure & Public Entities, Institutional sectors across North, West, South and East regions across India.

The India integrated facility management market is driven by several factors, including the growing infrastructural developments, rising commercial real estate and residential buildings, sustainable economic growth, and government initiatives such as smart cities and Housing for All. In addition, the significant presence of several local as well as international vendors, technological advancements in the facility management landscape, and the growing emphasis on sustainability and energy efficiencyin India are supporting the growth of the integrated facility management market in India.

Soft Services:

The market size of the Soft FM segment in the Indian integrated facility management market in terms of revenue was valued at USD 3.06 billion in 2024 and is expected to reach USD 4.77 billion by 2029, registering a CAGR of 9.3% over the forecast period (2024-2029). Soft Facility Management (FM) services - which include landscaping, janitorial, catering, pest control and others - hold a significant share in the Indian IFM market, driven by increasing outsourcing across industries, heightened hygiene and safety standards and rapid urbanization. The growing expansion of commercial and industrial infrastructure, especially in Tier 1 cities, is fuelling demand for these services. Developments like Bengaluru Airport City Limiteds plan to build a business park at Kempe Gowda International Airport further exemplify this trend. The rise of IT and business parks has created a sustained need for services like cleaning, landscaping and catering to maintain operational efficiency. Additionally, urban development and large-scale infrastructure projects have heightened the need for secure and healthy environments, further driving demand for soft services. Among end-users, the commercial, retail, and restaurant sectors are leading contributors to soft FM demand, particularly for services in corporate offices nationwide. This is illustrated by deals like CBREs USD 3 million contract in October 2024 to manage integrated facilities for NetApps

1.07 million sq. ft. office portfolio in India, which includes services such as janitorial work, cleaning, catering, and procurement. As companies seek comprehensive FM partners, the market for soft services continues to grow rapidly in both scope and scale.

Source: Mordor Intelligence Report

Hard Services Industry:

The Hard FM and HVAC segment in India is growing rapidly, expected to to reach Rs. USD 2.98 billion by 2029 from USD 1.72 Billion growing at a CAGR of 11.62%. The demand for Hard FM and HVAC services in India, which includes Mechanical, Electrical and Plumbing (MEP), as well as HVAC maintenance and asset management, is growing steadily. This growth is driven by the need for efficient building management, rapid urbanization, infrastructure development, and rising standards for safety and energy efficiency. Green initiatives such as Indias Net Zero goal by 2070 and certifications like LEED and IGBC are encouraging the adoption of energy-efficient HVAC increases, especially in commercial and industrial sectors, there is a growing need for maintaining complex infrastructure, boosting the demand for MEP and HVAC maintenance services. Government and public infrastructure projects are major contributors to this demand, with new tenders being issued for HVAC installations in both public and private buildings. Key initiatives like PMAY, Smart Cities Mission, National Infrastructure Pipeline and Bharatmala are further accelerating the need for MEP services. Additionally, the ‘Make in India push has led to the development of new factories, warehouses, and logistics hubs - all of which require robust HVAC and MEP systems for smooth operations. Overall, as the Indian facility management market evolves, there is a clear shift toward intelligent, sustainable, and integrated building solutions to support the countrys growth and modernization.

Warehouse Management Industry:

The Indian warehousing sector is on the brink of a remarkable transformation. As supply chains evolve, the demand for warehouse space is projected to reach approximately 1.2 billion sq. ft by 2027 across Grade A, B & C warehouses across all Indian cities. This growth is not just about quantity, but quality as well. The report highlightssignificantshift towards

Grade A warehousing, with stock expected to grow to an impressive 400 million sq. ft by 2027 from 248 million sq. ft in 2024.

Grade wise projected s tock

Institutional Catering Services Industry:

The India catering market is projected to grow at a compound annual growth rate (CAGR) of approximately 6.1% between 2025 and 2030. This growth is primarily driven by the increasing frequency of events and celebrations, such as weddings, festivals, and corporate functions, which are integral to Indias cultural and social fabric. As disposable incomes rise, more families and organizations are investing in premium catering services to enhance their events. Additionally, the expansion of the corporate sector has led to a consistent demand for catering services at business meetings and events. Health and safety concerns have also prompted a preference for professional caterers who can ensure quality and hygiene standards. Furthermore, the growing awareness of health and wellness is preferences, with an increased influencing demand for nutritious and customized meal options. These factors collectively contribute to the robust growth trajectory of the catering industry in India.

Source: https://www.marknteladvisors.com/research-library/ india-catering-market.html

Market Opportunities and Industry Trends (BSS) Sales Enablement:

The Indian sales enablement platform market generated revenue of USD 236.6 million in 2024 and is projected to grow significantly, reaching USD 762.7 million by 2030. Within this market, platform-based offerings currently contribute the largest share of revenue, while services are emerging as the fastest-growing segment, reflecting increasing demand for value-added support. In 2024, India accounted for approximately 4.5% of the global market and is expected to lead the Asia Pacific region in terms of revenue contribution by 2030. This strong growth outlook underscores Indias strategic position in the global sales enablement ecosystem and signals continued opportunities for technology-driven solutions.

Audit and Assurance:

The global Business Assurance Market size was valued at US$ 158.5 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.2% from 2023 to 2030. Business assurance enables the organizations to address various challenges that include overall risk management, audit management, compliance maintenance and effective governance of an organization. This allows the businesses to maintain effective control over various functional departments within an organization.

Source: UDS Internal Report

Employee Background Verification Industry

(Global):

The global Employee Background Verification market was valued at USD 6.7 billion in 2023 and is projected to reach USD 16.06 billion by 2032, growing at a CAGR of 10.2% over the forecast period. This growth is being driven by the increasing need for comprehensive background checks across sectors, particularly in recruitment, where safety, compliance, and risk mitigation have become critical priorities. As organizations place greater emphasis on secure hiring practices and regulatory adherence, background verification is becoming essential part of workforce onboarding and integrity assurance. The evolving legal and compliance landscape has further reinforced the importance of robust screening processes to safeguard against reputational and operational risks.

Source: https://www.skyquestt.com/report/background-check-market

Airport Ground Handling Services Industry:

The airport ground handling industry plays a pivotal role in ensuring seamless and safe aircraft operations on the ground. It encompasses services such as passenger assistance, baggage handling, cargo loading, aircraft refueling, marshalling, and maintenance. Driven by surging global air traffic, the expansion of e-commerce, and rapid airport infrastructure development, the sector is projected to grow from $32.4 billion in 2023 to $83.8 billion by 2033, at a CAGR of 10.1%. Key market dynamics include the rising demand from low-cost carriers, increasing airline outsourcing, and ongoing airport modernization projects. Technological advancements

- such as autonomous baggage systems, AI-driven logistics, and electric ground support equipment - are further transforming the sector, while stringent regulations and high capital costs remain critical challenges. The market is increasingly focused on sustainability, with growing adoption of eco-friendly equipment and carbon-reduction initiatives. With both independent providers and airline-owned entities competing for market share, the industry is poised for consolidation, innovation, and significant investment in digital infrastructure.

Source: Allied Market Research Report

Strategic Acquisitions boosting further growth

While the Company has continued to grow steadily through organic initiatives - driven by operational excellence, client retention and service innovation

- it has also achievedsignificantprogress through inorganic growth. Strategic acquisitions have played a key role in expanding our operational scope, service capabilities and geographic presence. These acquisitions have added high-margin services such as employee background verification, audit and assurance, feminine hygiene care, sales enablement, and airport ground handling to our portfolio. Funded primarily through internal accruals, they have helped diversify revenue streams, enhance competitiveness, and attract specialized talent. As the Indian IFM and BSS market continues to consolidate with increasing demand for organized and professional service providers, the company remains focused on selectively pursuing value-accretive acquisitions to strengthen its market position and extend its value chain presence. We will look to do acquisitions only if:

1. The business is managed by experienced promoters who continue to work with the company both to build their original business and add value to the overall organization.

2. We will look to acquire businesses which will add capabilities and are complementary to the entire group company as a whole.

3. The business we acquire will be margin accretive in nature and improve the profitability of the consolidated company.

4. They should be asset light and offer opportunity for cross sales or cost synergies which will help further unlock company value.

Acquisitions bring with them a set of multifaceted challenges. These include financial implications arising from the historical liabilities and obligations of acquired entities, as well as the complexities of integrating business operations, management teams and organizational cultures. Ensuring continuity in leadership, aligning technology systems, and harmonizing internal processes can be resource-intensive and time-consuming. Retaining key personnel and ensuring a smooth transition for existing customers of the acquired business also pose considerable risks. Additionally, there are legal, regulatory, and compliance considerations

- particularly during operational restructuring or cross - border transactions - that require careful navigation. While the Company remains confident that the integration of acquisitions and the consolidation of their performance will strengthen overall financial outcomes, it is mindful of the possibility that the realization of anticipated benefits may be delayed or not fully materialize as planned.

Company Strategy going forward

Retain, strengthen and grow the customer base: We focus on strengthening long-term customer relationships through renewable contractual engagements, which support a stable and predictable revenue stream. Our strong brand equity and consistent service quality contribute to high customer retention and provide opportunities for cross-selling additional solutions.

Grow market share in key segments: We are actively pursuing growth in strategic segments such as commercial real estate and industrial facilities, leveraging a customer-centric approach to account mining and business development.

Our dedicated 70-member sales and marketing team plays a pivotal role in driving new customer acquisitions while deepening existing client relationships.

Introduce new service offerings: We look to enter new, higher value-added and system-critical service offerings. We aim to enhance our overall product and service portfolio while driving improvements in profitability. These offerings, which demand greater technical expertise and integration into clients core operations, position us as a more indispensable partner in their value chains. By moving up the service value curve, we expect to deepen client relationships, command better pricing, and reduce competitive intensity. Furthermore, this evolution supports margin expansion, improves revenue visibility through longer-term contracts, and aligns with our broader objective of building a resilient, future-ready business model.

Continue to improve operating margins: Our focus on high value added and highly technical services combined with cost synergies and improving operating leverage should help us scale margins by 25-30 bps per year for the upcoming years.

Pursuing inorganic growth: We aim to achieve inorganic growth through strategic acquisitions of high-margin businesses that complement our existing operations. Our successful track record of identifying, acquiring, and seamlessly integrating such businesses has not only strengthened our market presence but also broadened our capabilities. These acquisitions enable us to diversify our service portfolio, allowing us to offer a wider range of higher value - added, higher-margin solutions to our customers. Through this approach, we accelerate access to new geographies, deepen domain expertise, and enhance our customer value proposition. Additionally, this strategy contributes to operational synergies, economies of scale, and improved financial performance - positioning us for sustainable, long-term growth.

Internal Control Systems and their Adequacy

Our Company maintains all records and processes all approvals through a robust Enterprise Resource Planning (ERP) system, ensuring centralized control and operational efficiency.

Adequate systems and well-defined procedures have been established to ensure effective internal financial controls appointed to periodically assess and monitor these control mechanisms. Internal audit findings are presented and discussed at Audit Committee meetings, which also include management responses and the final observations of the internal auditors.

The Board of Directors has adopted a range of policies and implemented controls and monitoring mechanisms to ensure the orderly and efficient conduct of the Companys operations. These measures are aimed at safeguarding assets, preventing and detecting fraud and errors, ensuring the accuracy and completeness of accounting records, and facilitating the timely preparation of reliable financial information.

The Company has engaged firmof an external

Chartered Accountants to evaluate the adequacy and effectiveness of the internal financialcontrol systems. The external evaluators have expressed satisfaction with the current systems in place.

The statutory auditors, in their report to the shareholders, have also expressed satisfaction with the Companys internal financial controls.

In compliance with the Companies (Accounts) Rules, 2014 (as amended), the Company and the components have used accounting software for maintaining its books of account which have the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in the accounting software except mentioned below:

The feature of audit trail (edit log) was not enabled at the database layer of the accounting software for the entire audit period.

The feature of audit trail (edit log) was not enabled at the application layer for certain fields of tables for payroll, procurement, revenue, property, plant and equipment and financial reporting processes.

In respect to components, the audit trail has been enabled throughout the year.

Further, where audit trail (edit log) facility was enabled for the respective accounting software, we and the other auditors did not come across any instance of the audit trail feature being tampered with during the course of our audit. Additionally, except where audit trail (edit log) facility was not enabled in the previous year, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

Additionally, the Company has implemented a comprehensive daily data backup process, with backups stored securely in remote locations to ensure data integrity and disaster recovery preparedness.

Discussion on Standalone Financial Performance with Respect to Operational Performance

	Standalone (In Millions)
Particulars	March 31,	March 31,
	2025	2024
Revenues from Operations	15,917.29	14,525.58
Other Income	251.17	288.31
Total Income	16,168.46	14,813.89
Profit Before Tax,
Finance Charges/Income,
	1,386.27	729.52
depreciation, and
Exceptional Items
Finance Charges (Net)	54.84	139.64
Provision for Depreciation	112.16	163.87
Exceptional Items	224.65	-
Profit Before Tax	994.62	426.01

Material Developments in Human Resources/ Industrial Relations Front, including Number of People Employed

The relationship between the management and employees remained cordial and constructive throughout the year under review. As of the reporting date, the Company employs a total of 71,104 individuals across various levels and functions.

Financial Ratios

The details of significant changes (ie., change of 25% or more as compared to the immediate previous financial year) in key financial ratios, along with detailed explanations, therefore:

Ratio	Formula	As on March 31, 2025	As on March 31, 2024	% of Variance	Reason for Variance
					The increase is on account of
	Current Assets/
Current Ratio (Times)		2.07	1.62	27.77%	increase in Trade Receivables as
	Current Liabilities
					of March 31, 2025.
	Net Credit Sales/
Debtors Turnover
	Average Trade	4.48	4.87	(8.01%)	-
Ratio (Times)
	Receivable
					Increase in net profitratio is on
	Net Profit/
					account of increase in net profit
Net Profit	Revenue from	4.98%	2.57%	93.67%
					after tax during the year ended
	Operations
					March 31, 2025.
Inventory Turnover
			Not Applicable
Ratio
Debt-Equity Ratio	Gross Debt/Total
		0.05	0.07	(19.62%)	-
(Times)	Equity
Trade Receivables	Sales /Average
		4.24	4.49	(5.75%)	-
Turnover Ratio	trade receivables
					Increase in Interest Coverage
					ratio is on account of increase in
Interest Coverage
	EBIT/Finance Cost	19.14	4.05	372.59%	Earnings Before Interest and Tax
Ratio
					during the year ended March 31,
					2025.
					Increase in Operating Profit Margin
Operating Profit	PAT/Average				is on account of increase in net
		9.77%	6.81%	43.46%
Margin	Equity				profit after tax during the year
					ended March 31, 2025.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Ratio	As on March 31, 2025	As on March 31, 2024	% of Variance	Reason for Variance
				Increase in return on equity ratio is on account of
Return on Net Worth	9.77%	6.81%	43.46%	increase in net profit after tax and average total equity
				during the year ended March 31, 2025.