Value 360 Communications Ltd Management Discussions

Global economic outlook //

The global economic environment in 2026 presents a mixed picture, balancing moderate growth opportunities with persistent challenges. According to the IMFs World Economic Outlook, global GDP growth is projected at 3.3% annually for 2026 and 3.2% for 2027, slightly below the historical average of 3.7% from 2000 to 2019, reflecting a period of slower global growth. The outlook remains regionally divergent, with the United States experiencing significant downward revision while other major economies face ongoing headwinds.

Advanced economies are anticipated to stabilize at 1.8% in 2026 and 1.7% in 2027, whereas emerging markets and developing economies (EMDEs) are forecasted to grow just above 4%. Meanwhile, global disinflation continues, with inflation expected to decline to 3.8% in 2026 and 3.4% in 2027. Inflation is projected to converge toward targets earlier in advanced economies than in most EMDEs, underscoring persistent macroeconomic disparities.

Growth Outlook Across Regions

The global economy remained resilient during FY2025–26 despite geopolitical and macroeconomic challenges. Advanced economies witnessed moderate growth, with the U.S. projected to grow at around 2.4% in 2026, while the euro area is expected to grow at approximately 1.3% amid weak demand and manufacturing softness.

Emerging Markets and Developing Economies (EMDEs) continued to drive global growth, supported by improving domestic demand and easing inflation. India is projected to grow at around 6.4%, while China is expected to expand by approximately 4.5% in 2026.

The MENA region, particularly Saudi Arabia and the UAE, continued to benefit from digital transformation and economic diversification initiatives, supporting investment, innovation, and long-term growth prospects.

Source: International Monetary Fund World Economic Outlook, January 2026

Indian Economic Outlook

India continues to remain one of the fastest-growing major economies globally, supported by strong domestic demand, infrastructure spending, digital transformation, and policy reforms. The economy is estimated to grow at around 6.5%–7.4% in FY26, driven by resilient consumption, rising investments, and a strong services sector.

Key Economic Drivers

Key growth drivers include robust domestic consumption, rising public and private investments, continued infrastructure development, and structural reforms aimed at improving ease of doing business. Expansion in digital infrastructure, financial inclusion, and formalisation of the economy is further supporting productivity and long-term growth.

The renewable energy sector continues to witness strong expansion, while resilient services exports, healthy foreign investment inflows, and a stable financial system are strengthening Indias macroeconomic outlook and reinforcing its position as an attractive global investment destination.

Source: Economic Survey 2025-26 Source: https://www.ey.com/en_in/newsroom/2025/08/india-may-emerge-as-second-largest-economy-by-2038-with-34-2-trillion-gdp

Global PR Industry Overview

The global public relations (PR) industry continues to evolve as an integral component of corporate communication and brand strategy. Increasing focus on reputation management, stakeholder engagement, digital communication, and crisis management is driving demand for integrated PR solutions across industries. The adoption of advanced analytics, AI-driven sentiment analysis, influencer marketing, and digital-first campaigns is further transforming the industry landscape.

Key sectors such as technology, healthcare, financial services, and consumer brands continue to increase investments in strategic communication and targeted PR campaigns. The growing importance of digital engagement and data-driven communication strategies is expected to support sustained growth in the global PR market.

Indian PR Industry Overview

The Indian PR industry has emerged as one of the fastest-growing segments within the communications and media sector. Estimated at approximately INR 2,500 crore in FY23, the industry accounted for nearly 17% of the Asia-Pacific PR market, reflecting Indias increasing importance in the regional communications landscape.

Over the past decade, the Indian PR industry has recorded strong growth, supported by rising corporate communication requirements, rapid digital adoption, and increasing demand for integrated communication strategies. The industry is projected to continue its growth trajectory, with revenues expected to reach approximately INR 4,570 crore by FY30.

Key Growth Drivers

• Diversified Client Base: Increasing demand from corporates, startups, NGOs, and government organisations is expanding the scope of PR services across sectors.

• Digital and Social Media Transformation: Growth in influencer marketing, digital media, and social media engagement is reshaping communication strategies and accelerating digital-first PR campaigns.

• Regional Market Expansion: Rising demand from Tier II and Tier III markets, along with regional language communication, is creating new growth opportunities for PR firms.

EMERGING SEGMENTS IN THE PR INDUSTRY:

ESG Communications:

Rising focus on sustainability, stakeholder transparency, and regulatory disclosures such as BRSR is driving demand for ESG-focused communication and reputation management services.

IPO and Capital Markets PR:

Increasing IPO activity in India is accelerating demand for investor communication, media management, leadership positioning, and capital market advisory services.

Healthcare and Pharma PR:

Growing investments in healthcare, pharmaceuticals, diagnostics, and wellness are increasing the need for specialised communication and reputation management solutions.

Regional and Vernacular PR:

Rising internet penetration and digital adoption across Tier II and Tier III cities are driving demand for regional language campaigns and localised communication strategies.

AI and Technology-led Communication:

Adoption of AI, analytics, and digital tools is enabling data-driven, personalised, and measurable communication campaigns across industries.

These emerging segments continue to create significant growth opportunities for the Indian PR and integrated communications industry.

Source: PRCAI Sprint report 2024-25

About the Company

Value 360 Communications has evolved into an integrated communications and digital engagement group offering services across PR, investor relations, crisis communication, reputation management,

• /. digital PR, and campaign management. The Company expanded its presence with offices in Mumbai and Bengaluru in 2011 and strengthened its sector-focused expertise through the launch of Popkorn PR Plus Communication Private Limited in 2013.

Over the years, the Group has strategically diversified into emerging digital segments through its international collaboration with Lewis in 2014, investment in influencer marketing platform ClanConnect in 2019, and development of creator monetization platform Hubscribe in 2023. In 2024, the Company launched Value Bharat to strengthen its regional outreach and localized communication capabilities, reflecting its continued focus on innovation, digital growth, and market expansion.

Financial Snapshot: (INR in Lakhs)

Key Financial Performance	31-Mar-26	31-March-25
Total Revenue	6,939.20	5,474.39
EBITDA	1,916.54	1,198.76
EBITDA Margin (%)	27.62%	21.90%
PAT	1,001.99	583.74
PAT Margin (%)	14.44%	10.66%
Trade Receivables Days	162	120
Trade Payables Days	104	63
Return on Equity (%)	31.91%	32.04%
Return on Capital Employed (%)	27.42%	23.98%
Debt-Equity Ratio (times)	0.40	0.33
Current Ratio (times)	1.50	1.52

FINANCIAL REVIEW (INR in Lakhs)

Total Revenue ;

Total Revenue of the Company stood at 6,939.20 lakhs during the period ended March 31, 2026 as compared to 5,474.39 lakhs in March 31, 2025 demonstrating consistent operational momentum.

EBITDA and EBITDA Margin

EBITDA increased to 1,916.54 lakhs during the period ended March 31, 2026 from 1,198.76 lakhs in March 31, 2025. EBITDA Margin improved to 27.62% from 21.90%, driven by operational efficiencies, improved service mix, and better cost optimization.

Profit After Tax (PAT)

Profit After Tax increased to 1,001.99 lakhs during the period ended March 31, 2026 from 583.74 lakhs in March 31, 2025. PAT Margin improved to 14.44% as compared to 10.66% in the previous year, reflecting improved profitability and operational performance.

Trade Receivables Days

Trade Receivables Days increased to 162 days during the period ended March 31, 2026, from 120 days for the period ended March 31, 2025, primarily due to higher business volumes and extended collection cycles from certain clients.

Trade Payables Days

Trade Payables Days increased to 104 days during the period ended March 31, 2026 as against 63 days in the period ended March 31, 2025, reflecting effective working capital management and vendor payment optimization.

Return on Equity (ROE)

Return on Equity stood at 31.91% during the period March 31, 2026 as compared to 32.04% in March 31, 2025.

Return on Capital Employed (ROCE)

Return on Capital Employed stood at 27.42% during the period ended March 31, 2026 as compared to 23.98% in March 31, 2025 indicating continued efficient utilization of capital employed.

Debt-Equity Ratio

Debt-Equity Ratio increased marginally to 0.40 times during the period ended March 31, 2026 from 0.33 times in March 31, 2025, reflecting prudent leverage management.

Current Ratio

Current Ratio stood at 1.50 times during the period ended March 31, 2026 as compared to 1.53 times in March 31, 2025, indicating adequate liquidity to meet short-term obligations.

PARTICULARS	2024	2029	FY24\u2013FY29
	MARKET SIZE	MARKET SIZE	CAGR
PR	2,775.00	5,068.00	12.80%
Digital Ads and Content Solutions	66,200.00	1,24,658.00	14.00%

Above table depicts the current size, future projections and its growth rate of the markets that we function in:

The following factors have driven growth among our business segments-

• The public relations (PR) sector has emerged as a critical pillar within the communications and media landscape, underpinning the dynamic evolution of business communications in India.

• In FY23, the global PR market was estimated at approximately INR 168,000 Crore, with the Indian market contributing 1.5% to this global valuation. In FY24, the domestic segment is projected to generate revenues of INR 2,775 Crore, thereby commanding 15% of the Asia-Pacific PR market.

• This impressive growth trajectory is supported by an 11.7% compound annual growth rate over the past three years, driven by the increasing sophistication of PR strategies, a heightened emphasis on measurable business outcomes, and the integration of technology-driven solutions. The growth drivers within Indias PR market are multifaceted.

• Firstly, PR is rapidly shifting to a digital-first approach, leveraging social media, influencer engagement, and real-time communication to safeguard brand identity and drive audience connection.

• The increasing use of both micro and macro influencers continues to shape brand narratives, reinforcing the industrys role in digital engagement.

• Secondly, purpose-driven PR is gaining prominence, with brands focusing on measurable ESG impact to enhance corporate reputation and stakeholder trust—while also needing to differentiate genuine initiatives from greenwashing.

• Additionally, strategic amplification of government and political campaigns has become a key aspect of public awareness efforts.

• Regional PR is another significant driver, as brands adopt hyperlocal strategies that respect cultural sensitivities to build stronger community connections.

• Finally, the adoption of big data and AI is transforming PR practices, enabling deeper research insights, personalized content strategies, and the rise of conversational AI for dynamic engagement.

• These evolving trends are reshaping industry benchmarks while also presenting new challenges in managing misinformation and maintaining competitive differentiation.

• The digital advertising and content segment has rapidly ascended as a cornerstone of the broader marketing landscape, reflecting the paradigm shift in media consumption and advertiser priorities. In 2024, the Indian advertising market was valued at INR 1,25,200 Crore, demonstrating a year-on-year growth rate of ~7%. Notably, digital media now stands approximately INR 66,200 Crore.

• Growth in digital is primarily fueled by rising disposable incomes, the increasing digital engagement of small and medium enterprises, and advertisers strategic focus on district-level targeting to leverage the benefits of rising rural affluence. Key themes are driving the rapid growth of digital advertising in India.

• Firstly, the expansion of the advertiser base and the democratization of digital advertising have unlocked significant opportunities for platforms catering to small businesses, enabling more brands to leverage targeted marketing.

• Secondly, the adoption of generative AI is transforming the entire advertising lifecycle—from content creation to campaign optimization—enhancing efficiency, personalization, and ROI.

• The gaming sector is another major driver, experiencing double-digit growth that is increasing digital ad share, as advertisers tap into highly engaged audiences through innovative and measurable ad formats.

• Additionally, the demand for vernacular and localized content is surging, fueled by the expanding user base in Tier-2+ cities and rural areas, where regional language content is critical for deeper audience engagement.

• Simultaneously, the digital content creation landscape is experiencing robust momentum, underpinned by a surge in demand for innovative, engaging content and end-to-end campaign management solutions.

Closing Statement

The Company continues to focus on strengthening its integrated communications and digital engagement capabilities through operational excellence, strategic diversification, and technology-led solutions. With a strong presence across public relations, influencer marketing, and Digital PR Solutions, the Company remains well-positioned to capitalize on emerging opportunities in the evolving media and digital communications landscape. Management remains committed to driving sustainable growth, enhancing stakeholder value, and maintaining prudent financial discipline.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, projections, estimates, and industry outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, market trends, competition, regulatory developments, technological changes, and other incidental factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent developments or events.