Yudiz Solutions Ltd Management Discussions

(a) Industry Structure and Developments

Yudiz Solutions operates in the Information Technology services and consulting sector, with expertise across Enterprise Software, Mobile Applications, Artificial Intelligence and Machine Learning (AI/ML), Game Development, Blockchain Technologies, FinTech and digital products.

The global technology industry continues to undergo rapid transformation, driven by the increasing adoption of Artificial Intelligence, automation, cloud technologies, digital platforms and data-driven solutions. In particular, the adoption of Artificial Intelligence and Generative AI is transforming traditional software development and technology delivery models. Businesses across industries are increasingly seeking technology solutions that can improve productivity, automate processes, enhance customer experience and support data-driven decision-making.

The industry is also witnessing a gradual shift from traditional project-based technology services towards product-led, platform- based and technology-enabled business models. Proprietary software products, SaaS platforms and digital solutions provide technology companies with opportunities to build intellectual property, serve a wider customer base and create scalable revenue streams.

The gaming and digital entertainment sectors continue to evolve with increasing digital consumption and adoption of mobile and online platforms. Blockchain technology is also evolving beyond its traditional applications, with opportunities emerging across FinTech, digital assets, enterprise solutions and decentralized applications. FinTech continues to experience technology-led transformation through digital payments, automation, data analytics, AI-enabled solutions and secure digital platforms.

In line with these industry developments, Yudiz Solutions is progressively strengthening its focus on developing and commercializing proprietary technology products alongside its established IT services business. The Company intends to leverage its capabilities across AI/ML, FinTech, Gaming, Blockchain and digital technologies to develop scalable products and platforms addressing evolving market requirements.

The Companys product-led strategy is intended to complement its services business, create additional revenue opportunities, improve scalability and build long-term intellectual property and technology assets. Yudiz continues to invest in technology capabilities, innovation and product development to participate in emerging opportunities within the rapidly evolving global technology landscape.

(b) Opportunities & Threats Opportunities

The continuing digital transformation across industries provides significant growth opportunities for Yudiz Solutions. Businesses are increasingly adopting technology solutions to improve operational efficiency, customer engagement, automation and business intelligence. This creates opportunities across AI/ML, FinTech, digital products, Gaming, Blockchain and enterprise technology solutions.

Artificial Intelligence and Generative AI represent significant areas of opportunity as organizations increasingly integrate intelligent systems into their business processes and technology platforms. Yudiz can leverage its existing technology capabilities to develop AI-enabled solutions and products while also enhancing productivity and efficiency in its technology services business.

The increasing adoption of digital platforms and software products also provides an opportunity for the Company to strengthen its product-led business model. Proprietary products can potentially address a broader customer base and provide greater scalability than individual client projects. The development of intellectual property and technology platforms can therefore complement the Companys existing services-led revenue model.

FinTech, HealthTech, EduTech, E-commerce and other technology-driven sectors continue to require specialized software and digital solutions. The Companys experience across multiple technology domains provides opportunities to serve these emerging requirements.

The Companys expansion into the GCC region also provides an opportunity to broaden its geographical presence and access new customer and business opportunities.

Threats

The IT services and technology product markets remain highly competitive, with larger technology companies having significant financial, technical and human resources. Competition from established players as well as new technology-focused companies may place pressure on pricing, margins and market share.

Rapid technological change also creates the requirement for continuous investment in skills, infrastructure, research and development. The emergence of AI and automation may change traditional technology delivery models and increase the need for organizations to continuously adapt their talent and operating models.

The Gaming industry remains subject to regulatory developments and changes in government policies. Global economic conditions, international trade policies, tariffs, fluctuations in IT spending and changes in customer technology budgets may also affect demand for technology services and products.

(c) Segment-wise Performance

Yudiz Solutions operates within the Information Technology sector and represents a single reportable segment.

During FY 2025-26, the Company continued to operate across multiple technology domains, including FinTech, digital products, Gaming and other technology development activities. The Company continued to leverage its technology capabilities and customized solutions to address changing customer requirements.

Going forward, the Company intends to strengthen its product-oriented approach alongside its established IT services business. This approach is expected to provide opportunities to diversify revenue sources, develop proprietary intellectual property and build scalable technology offerings.

(d) Outlook

The global technology industry is expected to continue evolving rapidly, supported by digital transformation, Artificial Intelligence, automation, cloud adoption, digital platforms and increasing demand for technology-enabled business solutions.

Yudiz Solutions believes that its presence across multiple emerging technology areas provides a foundation for future growth. The Companys capabilities in AI/ML, FinTech, Gaming, Blockchain, enterprise software and digital products provide opportunities to address changing requirements across different industries.

A key strategic focus of the Company is the gradual transition towards a more product-led technology business. While IT services will continue to remain an important part of the Companys business, greater emphasis is being placed on developing and commercializing proprietary products and technology platforms.

The product strategy is intended to create scalable technology assets and intellectual property that can potentially serve customers beyond the traditional project-based services model. The Company believes that successful product development can provide additional revenue opportunities and support the creation of recurring and scalable revenue streams over the longer term.

Artificial Intelligence and Generative AI are expected to remain important drivers of technology adoption. Yudiz intends to continue developing its capabilities in these areas and explore opportunities to incorporate AI into its products, platforms and technology solutions.

The Company also continues to evaluate opportunities to expand its geographical reach. Its operations in the GCC region provide an additional avenue for business development and market expansion.

Following the significant correction witnessed across global technology markets after the Companys IPO in 2023, the Company remains focused on strengthening its fundamentals, improving operational efficiency, investing selectively in technology and building a stronger foundation for sustainable growth.

The Company will continue to focus on innovation, research and development, technology capabilities, talent development, product development and strategic business opportunities. It will also evaluate suitable acquisition and partnership opportunities that are aligned with its long-term objectives.

(e) Risk and Concerns

The technology industry is characterized by rapid technological change, intense competition and continuously evolving customer requirements. These factors create both opportunities and risks for the Company.

One of the key risks is the rapid advancement of Artificial Intelligence and automation. Increasing adoption of AI may alter traditional software development and technology delivery models and may require continuous investment in technology, talent and infrastructure. The Company is therefore required to continuously upgrade its capabilities and adapt its workforce to emerging technologies.

The Company also operates across technology segments such as Gaming, FinTech and Blockchain that may be affected by regulatory developments, changes in government policies and evolving market conditions. Changes in regulations applicable to the Gaming industry may affect business opportunities and operating conditions.

Macroeconomic conditions, fluctuations in global IT spending, international trade policies, tariffs, geopolitical developments and changes in customer technology budgets may impact demand for technology services and products.

The Companys increasing focus on proprietary products also introduces product-development and market-adoption risks. Product investments may require time and resources before generating meaningful commercial returns, and market acceptance may depend on customer requirements, competitive offerings and the Companys ability to continuously enhance its products.

The Company seeks to manage these risks through continuous monitoring of business and market developments, investment in technology capabilities, strengthening internal controls and maintaining a diversified technology portfolio.

(f) Internal Control Systems, Their Adequacy and Risk Management

Yudiz Solutions has implemented internal control systems designed to monitor its financial, operational and technology-related activities and to support efficient and compliant business operations.

The Companys internal controls include continuous oversight of financial processes, IT systems and operational activities. These controls are intended to support the reliability of financial information, safeguard assets, improve operational efficiency and ensure compliance with applicable requirements.

As the Company continues to expand its business and develops a greater focus on products and technology platforms, scalability of internal controls remains an important area of management attention. The Company remains committed to strengthening its processes and deploying appropriate tools and technologies to maintain effective operational and financial controls.

The Company also continues to monitor operational and technology risks arising from rapid technological developments and changing market conditions.

(g) Financial performance with respect to operational performance:

The Consolidated Financial Statements comprise the financial statements of Yudiz Solutions Limited and its two subsidiaries, namely Insightly Datawotks Private Limited and ABCM App Private Limited. ABCM App Private Limited remained a subsidiary of the Company up to October 17, 2025. Pursuant to a reduction in the Companys shareholding from 51.01% to 49.88%, ABCM App Private Limited ceased to be a subsidiary and has been accounted for as an Associate Company from October 18, 2025 for the purpose of consolidation. Accordingly, the Consolidated Financial Statements include the financial results of ABCM App Private Limited as a subsidiary up to October 17, 2025, and as an associate thereafter, in accordance with the applicable Indian Accounting Standards.

Consolidated Financial Statements

For the year ended 31^st March, 2026, the company has achieved a consolidated Revenue of Rs. 2332.45 lakhs, and it has shown the downward trend by 3% over the last year of Rs. 2404.25 lakhs. The Company has incurred a consolidated net loss of Rs. 19.30 lakhs, registering the upward trend over the loss of Rs. 171.56 lakhs in Financial Year 2024-2025.

Standalone Financial Statements

For the year ended 31^st March, 2026, the company has achieved a standalone Revenue of Rs. 2332.41 lakhs, and it has shown the downward trend by 2.71% over the last year of Rs. 2397.42 lakhs. The Company has incurred a net Profit of Rs. 36.03 lakhs, registering the upward trend over the net loss of Rs. 56.06 lakhs in Financial Year 2024-2025.

(h) Material developments in Human Resources, Industrial Relations, and Health, Safety & Environment:

Human resources continue to remain an important component of the Companys technology-led business model. Yudiz Solutions is committed to talent development, employee engagement and the acquisition and development of capabilities in emerging technology areas.

The Company places particular emphasis on technology skills relevant to Blockchain, FinTech, Gaming and Artificial Intelligence. As the Company increasingly focuses on product development, continued development of specialized technical and product-oriented capabilities will remain important.

(i) Key Financial Ratios for 2025-2026 compared with 2024-2025 Consolidated Financial Statements

Sr. No. Particulars	2025-2026	2024-2025
1. Current Ratio	2.52	11.02
2. Debt Equity Ratio	0.00	0.01
3. Debt Service Coverage Ratio	2.11	-4.41
4. Return on Equity Ratio	-0.55%	-3.58%
5. Inventory Turnover Ratio	-	-
6. Trade Receivable Turnover Ratio	14.45	11.97
7. Trade Payable Turnover Ratio	45.89	44.60
8. Net Capital Turnover Ratio	5.91	0.63
9. Net Profit Ratio	-0.89%	-8.17%
10. Return on Capital Employed	4.05%	2.89%

Standalone Financial Statements

Sr. No. Particulars	2025-2026	2024-2025
1. Current Ratio	2.56	11.50
2. Debt Equity Ratio	-	0.01
3. Debt Service Coverage Ratio	1.54	0.45
4. Return on Equity Ratio	1.01%	-1.16%
5. Inventory Turnover Ratio	-	-
6. Trade Receivable Turnover Ratio	14.47	6.06
7. Trade Payable Turnover Ratio	15.26	10.35
8. Net Capital Turnover Ratio	5.82	0.63
9. Net Profit Ratio	1.66%	-2.68%
10. Return on Capital Employed	5.54%	5.22%

 

		For & on behalf of the Board of Directors
		Yudiz Solutions Limited
	Sd/-	Sd/-
	Bharat Shamjibhai Patel	Pratik Bhaskarbhai Patel
Date: August 31, 2026	Chairman & Whole Time Director	Managing Director
Place: Ahmedabad	DIN: 00243783	DIN: 05262863
Registered Office:
13th Floor, Bsquare 2, Iscon-Ambli Road, Ahmedabad-380054, Gujarat, India