Winpro Industries Ltd Management Discussions

Annexure- 1

Global Economic Overview

Fiscal 2025 was marked by significant uncertainties stemming from elevated interest rates, geopolitical tensions, and major elections across leading economies. These challenges compounded the ongoing transformation within the technology services industry. Heightened inflationary pressures and tighter monetary policies continued to dampen discretionary spending, while rising protectionist measures created additional disruptions in global trade flows. Despite these headwinds, selective areas of growth and digital transformation initiatives helped sustain momentum within the IT services sector.

Artificial Intelligence (AI) emerged as the most prominent unifying theme across industries and governments alike. While global GDP expanded by 3.2% in CY 2024, reflecting a slight moderation of 10 basis points compared to the prior year, IT services growth remained steady at 4.7% during the same period. The near term is expected to witness sustained client spending and strategic investments pivoting toward AI, particularly as enterprises look to navigate macroeconomic uncertainty. Fiscal 2025 also demonstrated the early stages of AI reshaping the technology landscape?driving cost optimization, enhancing resilience and agility, personalizing customer and employee experiences, and enabling the launch of innovative, disruptive offerings. With our leadership position in AI and deep industry expertise, we are well-positioned to capture emerging opportunities and support clients in accelerating their digital transformation journeys.

Indias economy demonstrated resilience and steady growth in FY 2024-25, with real GDP estimated at 6.5% as per the Second Advance Estimates. This performance reflects strong domestic demand, supportive government policies, and expanding activity in the services sector, which grew by 7.2% across finance, real estate, professional services, and public administration. Government reforms, infrastructure investments, and initiatives such as Make in India and the PLI scheme have further strengthened the countrys growth trajectory.

With these developments, India has secured its position as the worlds fourth-largest economy by nominal GDP and third-largest by PPP. Looking ahead, the nation has set ambitious targets of achieving a $5 trillion economy by FY 2027-28 and a $30 trillion economy by 2047. To support this vision, the capital investment budget for FY 2025-26 has been raised to ^11.21 lakh crores, representing 3.1% of GDP, underlining the governments continued commitment to reforms, infrastructure, and technology-driven growth.

The technology sector is expected to witness an improvement in spending during FY26, aligning more closely with the initial projections for FY25. According to NASSCOMs Annual Tech Services CXO Survey 2025, which covered over 100 technology service providers across IT services, BPM, ER&D, and software product segments, the overall outlook remains positive with respect to client demand, AI investments, and growth prospects. Notably, 77% of providers expect business growth to improve in FY26, driven by the expansion of core digital services, growth in emerging markets, and the strategic integration of AI-driven solutions.

At the same time, expectations regarding client technology budgets are more cautious. Only 40% of providers anticipate higher budgets, while 45% expect spending to remain stable at prior-year levels. Hiring sentiment reflects a similar moderation, with 45% of providers indicating plans to increase recruitment, primarily at entry levels to support AI-related upskilling. Demand for roles in data, cloud, and specialized AI management?such as AI model validation and reinforcement training?is expected to rise. Several factors are likely to shape enterprise technology spending in FY26, including AI-led service transformation, macroeconomic constraints on discretionary spending, and geopolitical uncertainties. Additionally, protectionist policies, including tariff increases, may impact certain industry verticals served by Indian IT companies, potentially leading to cautious client investment strategies. In response, providers are focusing on maintaining operational flexibility and resilience to navigate evolving external and internal challenges effectively.

In 2025, the technology sector is expected to build further momentum with accelerated adoption of artificial intelligence (AI), cloud platforms, and advanced data analytics. While global economic headwinds and geopolitical uncertainties may continue to pose challenges, enterprises are expected to prioritize digital transformation to drive resilience and efficiency. Key growth areas will include generative AI, intelligent automation, and cybersecurity, as organizations seek to enhance customer experiences and future-proof their operations.

Winpro is strategically positioned to benefit from these market opportunities by strengthening its AI-first offerings and expanding its cloud-driven solutions. The companys focus on innovation and ecosystem partnerships will enable it to deliver differentiated value to clients. By aligning its services with the evolving needs of enterprises, WinPro is confident of capturing growth opportunities and sustaining long-term business momentum in the year ahead.

• Operates in a highly competitive IT services market with limited pricing flexibility.

• Exposure to foreign currency fluctuations impacts profitability.

• Talent acquisition and retention challenges remain critical.

• Macroeconomic pressures in key markets (US, Europe) affect demand..

• Regulatory changes could impact operations.

• Accelerating Digital Transformation: Growing demand for cloud migration, automation, CRM, and data analytics.

• Sector Growth Potential: BFSI, retail, manufacturing, and healthcare offering strong demand.

• Enterprise Efficiency: Organizations investing in technology to enhance competitiveness and customer experience.

• Innovation & Expansion: Scope to develop advanced digital solutions and expand into new geographies.

• Value Creation: Increasing adoption of digital solutions positions the sector for sustained growth.

During FY 2025, Winpro Industries Limited delivered a strong turnaround in performance. The Company recorded a total income of ^30.33 lakh as against nil income in FY 2024, marking a robust entry into revenue generation with 100 % growth from a zero base. Net profit stood at ^17.66 lakh compared to a loss of ^28.12 lakh in the previous year, reflecting a sharp turnaround with an improvement of over ^45 lakh, translating into a positive swing of nearly 160 % in profitability. Earnings per share also improved significantly to ^0.02 in FY 2025 from a negative ^0.03 in FY 2024, representing a growth of 167 %, underscoring the positive shift in profitability and value creation for shareholders.

Your Company has adequate internal control procedures commensurate with its size and nature of business. Your Company has clearly laid down policies, guidelines, and procedures that form a part of the internal control systems. The adequacy of the internal control systems encompasses the Companys business processes and financial reporting systems and is examined by the management as well as by its internal auditors at regular intervals. The internal auditors conduct audits at regular intervals to identify the weaknesses and suggest improvements for better functioning. The observations and recommendations of the internal auditors are discussed by the Audit Committee to ensure timely and corrective action.

At WinPro, we recognize the significance of the Human Resources department as an integral part of our business. Our primary objective is to maximize employee productivity. To achieve this, we follow various modes of knowledge sharing sessions that revolve around effective employee management, enhancing individual and organizational performance, career development, technology implementation and integration, as well as talent and capability building.

One of our foremost priorities is to support our employees continuous improvement. To accomplish this, we place great importance on providing ongoing training and development programs. Given the dynamic nature of competition and the business environment, it is crucial for us to empower our employees with learning opportunities and assist them in developing new skills.

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions, may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include: global and domestic demand and supply conditions, and other business policies, changes in government regulations and tax laws, overall economic growth rate etc., economic developments within India and the countries within which the Company conducts business etc.