XT Global Infotech Ltd Management Discussions

Industry Structure and Development

IT Business of most Indian Software Development companies can be classified into Onsite Consulting Services, Offshore Software Services, Product Sales and IT Enabled Services. While Onsite Consulting Services has witnessed a steady growth, Offshore Software business has experienced a significant change either through Dedicated Development Centers for overseas partners or Joint Ventures. We have a global presence, deep domain expertise. The product sales of Indian companies in the international markets has been miniscule, while IT enabled services business has seen a strident growth from more than a decade. The future direction clearly favors Offshore Software Services and lT-enabled Services.

XTGlobal Infotech Limited is a Public Listed Company, incorporated and domiciled in India and has its Registered Office at Hyderabad, Telangana, India. It is Listed on BSE Limited (BSE) and NSE Limited (NSE).

Opportunities

Offshore Software Maintenance and Enhancements IT Enabled Services/BPO Operations Increased IT spending within India Technology Development

The Company has established adequate internal control systems and procedures both in financial and operational areas that are commensurate with the size and nature of the business of the Company. The constitution of Audit Committee with independent non-executive Directors is instrumental in ensuring mainly the following:

?€? Oversight of the Companys financial reporting process and the disclosures of its financial information to ensure that the financial statements are correct, sufficient and credible.

?€? Reviewing with management the annual financial statements before submission to the Board, focusing primarily on any changes in accounting policies, compliances with accounting standards etc.

?€? Discussion with the senior management to ensure adherence to the internal Control systems and processes.

?€? To ensure that appropriate controls are established and are effective throughout every software development project and conforming to Software Engineering Practices.

Threats, Risks and Concerns

Competition from countries like China and European Countries in the medium to long term. Large international companies establishing their own subsidiaries instead of depending on Indian Companies.

Global Economic and Market Conditions

The global business environment during the year continued to be influenced by evolving economic conditions, changing technology priorities, geopolitical developments and varying levels of demand across international markets. At the same time, the continued adoption of digital technologies, cloud platforms, automation, data-driven solutions and technology-enabled business processes is creating opportunities for technology and business process service providers.

XTGlobal remains focused on leveraging its capabilities across software services, application development and modernization, cloud and infrastructure services, product engineering, quality engineering, Oracle solutions, Microsoft technologies, automation and managed services to address the evolving requirements of clients across international markets. The Company also provides Finance and Accounting outsourcing services, covering areas such as Accounts Payable, Accounts Receivable, banking and reconciliation activities, vendor management, finance operations and related process support. The Companys Circulus platform further enables technology-led Accounts Payable automation and document/process automation.

The Company believes that the increasing focus of enterprises on digital transformation, cost optimisation, process automation, cloud adoption and outsourcing of non-core business functions provides opportunities for sustained demand across its service portfolio. XTGlobal intends to continue strengthening its capabilities in IT services, technology consulting, automation, Finance and Accounting operations and managed services, while pursuing offshore delivery opportunities and building long-term relationships with clients.

The Company will continue to focus on delivery excellence, operational efficiency, technology capabilities, quality engineering and customer-centric service delivery to support sustainable growth and create long-term value for its stakeholders. XTGlobals website currently describes its capabilities as spanning technology and engineering as well as finance, procurement and shared services, including Finance & Accounting and Circulus.

Outlook

The Management remains focused on strengthening the Companys business operations and pursuing sustainable growth opportunities across Offshore IT Consulting, Software Services, Cloud and Automation, Oracle and Microsoft solutions, Managed Services, and Finance & Accounting outsourcing services.

During the year, the Company expanded its Finance & Accounting services and secured business opportunities from clients in Ireland and Australia. These engagements provide an opportunity to further strengthen the Companys accounting and finance outsourcing capabilities and expand its international client base. The Company intends to build on this momentum by increasing its presence in international markets and pursuing additional opportunities in Finance & Accounting outsourcing, including Accounts Payable, Accounts Receivable, reconciliation, finance operations and related process-support services.

The Company is also evaluating and planning to develop a Global Capability Centre (GCC) model as an additional growth avenue. The GCC model is expected to enable the Company to provide dedicated technology, finance and accounting, and business-process capabilities to clients through scalable offshore delivery centres, while creating opportunities for long-term and strategic client engagements.

The Management will continue to strengthen its marketing and business development initiatives in India, the United States, the Middle East, Ireland, Australia and other potential international markets. The Company intends to leverage its existing technology capabilities, domain expertise and offshore delivery model to secure new clients and expand relationships with existing customers.

The Company will also evaluate strategic business opportunities, including potential acquisitions, partnerships and other collaborations, where appropriate, with the objective of expanding its service

offerings, accessing new markets and capabilities, strengthening its customer base and achieving operational synergies.

The Company will remain focused on operational efficiency, delivery excellence, technology enhancement and financial strengthening, while evaluating appropriate funding opportunities to support its growth and strategic initiatives, subject to applicable statutory and regulatory requirements.

Overall, the Management remains optimistic about the Companys growth prospects and will continue to focus on expanding its IT consulting and outsourcing business, Finance & Accounting services and GCC capabilities, while building sustainable long-term value for customers, employees and shareholders.

Risk and Concerns

The Company operates across international markets, including the United States, Europe, Australia and other geographies, and remains mindful of changes in economic conditions, regulatory requirements, immigration policies and data protection norms that may affect offshore and onsite service engagements.

At the same time, the Company believes that the increasing demand for cost optimisation, digital transformation, technology modernisation, automation and offshore delivery models continues to create significant opportunities for IT consulting and outsourcing service providers. The Companys diversified service portfolio and offshore delivery capabilities provide flexibility to respond to changing client requirements and market conditions.

The Company has also been expanding its Finance & Accounting outsourcing services, including opportunities from international markets such as Ireland and Australia, which provides further diversification beyond traditional IT consulting engagements. The proposed Global Capability Centre (GCC) model is expected to further strengthen the Companys ability to provide scalable and long-term technology and business-process services to global clients.

The Management will continue to closely monitor regulatory and market developments, diversify its client and geographic base, strengthen offshore delivery capabilities and maintain appropriate risk- management practices to minimise potential business disruptions and support sustainable growth.

Strategy

XTGlobal has consistently evolved with changing technology and business environments by developing and strengthening capabilities across IT Consulting, Software Services, Cloud and Infrastructure, Oracle and Microsoft technologies, Automation, Managed Services, and Finance & Accounting outsourcing services.

The Companys strategy is centred on customer-centricity, agility, innovation, technology advancement and long-term client relationships. XTGlobal continues to deepen its engagements with existing customers by identifying new areas where its technology and domain capabilities can create value, while simultaneously expanding its service offerings and global market presence.

During FY 2025-26, the Company further strengthened its Finance & Accounting outsourcing services and secured business opportunities with clients in Australia. These engagements represent an

important step in expanding the Companys international client base and strengthening its offshore delivery capabilities in the accounting and finance domain.

The Company is also progressing towards developing a Global Capability Centre (GCC) model, which is expected to create new opportunities to provide dedicated and scalable technology, finance, accounting and business-process services to global organisations. The GCC model will complement the Companys existing offshore delivery capabilities and support the development of deeper, long - term strategic relationships with clients.

Going forward, XTGlobal will focus on expanding its international presence, increasing client engagements, strengthening offshore delivery capabilities, developing skilled talent and investing in emerging technologies and service offerings. The Company will continue to pursue opportunities across IT Consulting, Digital Transformation, Cloud, Automation, Oracle, Microsoft, Managed Services and Finance & Accounting outsourcing.

The Companys strategy remains focused on sustainable growth, operational excellence, service innovation and creation of long-term value for customers, employees and shareholders.

Internal control system and their adequacy

The Company has established adequate and effective internal control systems and procedures, commensurate with the size, scale and nature of its business. The internal control framework supports the Companys financial and operational objectives and is designed to promote operational efficiency, accuracy of financial reporting, safeguarding of assets, appropriate authorisation of transactions and compliance with applicable laws and regulations.

The Audit Committee provides oversight of the Companys financial reporting and internal control framework. The key areas of review and oversight include:

i. Oversight of the Companys financial reporting process and the accuracy, adequacy and credibility of financial information and disclosures.

ii. Review of the annual financial statements and related financial matters before submission to the Board of Directors.

iii. Review of significant accounting policies, accounting estimates and applicable accounting standards.

iv. Review and discussion with management regarding the effectiveness of internal control systems and processes.

v. Review of internal audit observations, recommendations and the status of implementation of such recommendations.

vi. Review of financial performance in conjunction with operational and business performance.

vii. Oversight of appropriate controls and processes relating to software development, project delivery, information systems and other operational activities.

viii. Periodic interaction with management to strengthen internal processes and ensure continued adherence to established control procedures.

The Company follows a process of continuous monitoring, evaluation and improvement of its systems and operations. Management remains focused on strengthening processes, enhancing operational efficiency and adopting appropriate technology-enabled controls across the organisation.

The Companys financial statements are prepared in accordance with the applicable Accounting Standards, the Companies Act, 2013 and other applicable statutory and regulatory requirements.

The Company believes that its internal control framework, together with the oversight provided by the Audit Committee and the Board of Directors, provides an appropriate foundation for efficient operations, reliable financial reporting and sustainable business growth.

Discussion on financial performance with respect to operational performance

The Company continued to focus on operational efficiency, customer engagement, business expansion and execution of financially viable projects during FY 2025-26. The Company also strengthened its presence across IT Consulting and Finance & Accounting outsourcing services.

During the year, the Company secured Finance & Accounting service opportunities from clients in Australia and continued to explore new international business opportunities. The Company is also progressing with its Global Capability Centre (GCC) model to support future business expansion and long-term client engagements.

The Companys financial performance during the year reflects its continued focus on profitable growth, efficient resource utilisation and expansion of business opportunities.

The financial statements of the Company are prepared in accordance with the applicable Accounting Standards, the provisions of the Companies Act, 2013 and other applicable statutory and regulatory requirements.

Financial Performance

The Company recorded a profit of ^656.52 lakhs for the financial year ended 31 March 2026, as compared with a profit of ^456.59 lakhs in the previous financial year ended 31 March 2025. This represents an increase of approximately 43.79% in profit over the previous year.

The improved performance reflects the Companys continued focus on financially viable business opportunities, efficient utilisation of resources, strengthening of customer relationships, expansion into international markets and development of new service capabilities.

The financial performance of the company over the years are as under:

Sl. No.	Financial Year	Profit/Loss (Rs. In Lacs)	Sl. No.	Financial Year	Profit/Loss (Rs. In Lacs)
1	Year ending March 2017	-20.13	6	Year ending March 2022	667.19
2	Year ending March 2018	-31.63	7	Year ending March 2023	835.67
3	Year ending March 2019	2.87	8	Year ending March 2024	769.51
4	Year ending March 2020	230.63	9	Year ending March 2025	456.59
5	Year ending March 2021	315.3	10	Year ending March 2026	656.52

Material development in human resources/Industrial relations front, including number of people employed.

Human Resource Development is a key area for growth and smooth functioning of any organization. The management recognized two major areas which will lead to achieve this goal, namely, creating a good working environment and imparting continuous training in latest technologies. Continuous upgradation of skills plays a key role in employee retention and job satisfaction and the company has taken adequate measures in this regard.

The company has cordial relations with its employees and staff. Efforts of the company are well recognized in India as well as abroad.

S.No	Ratio	FY 2025-26	FY 2024-25	FY 2023-24
1	Debtors turnover ratio	4.99	39.78	40.83
2	Inventory Turnover ratio	Not Applicable	Not Applicable	Not Applicable
3	Interest coverage ratio	5.25	6.34	6.68
4	Current ratio	2.41	0.96	0.45
5	Debt equity ratio	0.19	0.10	0.09
6	Operating margin (%)	13.04%	12.16%	17.99%
7	Net Profit margin (%)	9.06%	6.37%	10.87%

*On standalone basis

Cautionary Statement

Statements in this management discussion and analysis describing the companys objectives, projections, estimates, expectations might be considered forward-looking statements and actual results could differ materially from those expressed or implied. Factors which could make a significant difference to the Companys operations include demand supply conditions, market prices, input component costs and availability, changes in Government regulations and tax laws besides other factors such as litigations, over which the Company may not have any control.

For and on behalf of Board of Directors of XTGlobal Infotech Limited

Date: 5 th September 2026	Sd/-
Place: Hyderabad	K V A. Narasimha Raju
	Director
	DIN:08835460