Virtual Galaxy Infotech Ltd

Dear Shareholders and Valued Stakeholders,

It is with immense pride and sincere gratitude that l address you through this Annual Report, marking yet another transformational year in the remarkable journey of Virtual Galaxy Infotech Limited. As we reflect on FY 2024-25, I am compelled to share not merely our achievements, but the strategic vision that continues to propel us toward becoming a world-class provider of innovative technology solutions that empower businesses globally.

FY 2024-25 marked a defining milestone in VGIL's 27-year journey—signifying our evolution from a regional IT enterprise into a publicly listed company with a global outlook. Our successful IPO on May 19, 2025, on the NSE EMERGE SME Platform, which was oversubscribed 231 times and debuted with a 26.76% listing premium, stands as a strong endorsement of the market's confidence in our strategic direction, technological capability, and execution strength.

The exceptional investor interest-reflected in total bids exceeding Rs.14,400 crore for a public issue of Rs.93.29 crore-represents more than financial success. It signals a shared belief in VGIL's mission to transform the Banking & Financial Services (BFS), Enterprise Resource Planning (ERP), and E-Governance sectors through innovative, future-ready technology solutions.

Our financial performance in FY 2024-25 exemplifies the strength of our business model and the dedication of our talented workforce. I am delighted to report that we achieved revenue from operations of Rs.120.14 crores, representing an extraordinary 95.5% year-on-year growth. This exceptional growth trajectory, coupled with an EBITDA of U55.55 crores (46.24% margin) and Profit After Tax of Rs.32.12 crores (26.73% margin), demonstrates our ability to scale operations while maintaining operational excellence and profitability.

These results reflect not just numerical achievements, but the successful execution of our strategic initiatives across multiple dimensions—from product innovation and market expansion to operational efficiency and customer satisfaction. Our Banking & Finance segment contributed Rs.110.2 crores, representing 91.52% of total revenue, while our ERP solutions experienced remarkable growth, nearly tripling to Rs.9.44 crores. This performance validates our focused approach to serving specialized market segments where we can deliver maximum value to our clients.

At the heart of our success lies an unwavering commitment to technological excellence and continuous innovation. Our flagship E-Banker core banking solution now serves over 150+ financial institutions across India and Africa, managing 2.04 crore accounts and processing over 30 billion transactions annually with an impressive 99.9% system uptime. This achievement reflects not only our technical capabilities but also our deep understanding of the complex operational requirements of financial institutions.

Our commitment to process excellence is exemplified by our comprehensive international certifications, including ISO-IEC 27001-2022, ISO-IEC-20000-1-2018 and ISO-IEC-23001-7-2023, which ensure that our solutions meet the highest standards of quality, security, and service delivery.

The industry recognition we received in 2024 & 2025 further validates our technological leadership. I am particularly proud of our achievements, including "Best CEO of the Year" and "Financial Services Tech of the Year" at the Asia Leadership Awards 2024, "Best Regulatory Reporting Core Banking Solution" at the Elets BFSI Leadership Summit 2024, "Leading IT Solutions Provider of the Year" at SARDAR PATEL UNITY AWARDS 2025 and "Digital Transformation Leader" at International Grandeur awards 2025. These accolades represent external validation of our innovative capabilities and market leadership.

As we reflect on our progress and set our sights on the path ahead, VGIL's strategic vision remains rooted in sustainable value creation and long-term growth. Guided by market insights and our operational strengths, we are committed to building a more resilient, agile, and globally relevant enterprise.

Our growth roadmap is shaped by two key priorities: strengthening our core business and expanding our global footprint. We are pursuing this through a measured yet ambitious international expansion strategy, aimed at significantly enhancing our export contribution. With a growing presence across Africa, Asia Pacific, and the Middle East, VGIL is well-positioned to meet the rising demand for robust, scalable solutions in banking and digital payments.

This direction reflects our confidence in the opportunities that lie ahead and our belief in the capabilities of our people, technology, and partnerships. We remain focused on executing with discipline innovating with purpose, and delivering consistent value to our shareholders.

Our strategic infrastructure development, anchored by the our proposed development center at MIHAN Special Economic Zone with an investment of Rs.34.27 crores from IPO proceeds, will serve as our primary export delivery hub while housing advanced R&.D capabilities. This facility, designed to accommodate our workforce expansion from 350+ employees to 500 employees by FY 2027-28, represents our commitment to scaling operations while maintaining our culture of innovation and excellence.

In an era defined by artificial intelligence, machine learning, and digital transformation, VGIL remains at the forefront of technological innovation. Our notable investment in technology workforce enhancement and product upgrades demonstrates our commitment to maintaining technological leadership. We are actively integrating Al and ML capabilities into our core products, developing blockchain-based solutions for enhanced security, and advancing our cloud-native architecture to support scalable SaaS offerings.

Our V-Pay digital payment platform, which offers a full suite of services including UPI QR, Point-of-Sale, Payment Gateway, and AEPS, positions us to capitalize on India's rapidly growing digital payments market. The platform's comprehensive functionality and our target of reaching millions of businesses across India reflect our commitment to driving financial inclusion and digital empowerment.

Similarly, our expansion into new product categories, including comprehensive cybersecurity solutions for BFSI and government sectors and hospital management systems, demonstrates our strategic diversification while leveraging our core competencies in complex system integration and regulatory compliance

As a company listed on the SME Platform, we are committed to adopting and upholding sound corporate governance practices, tailored to the regulatory framework applicable to SME-listed entities under the SEBI (LODR) Regulations. In line with the SEBI (LODR) Regulations, 2015, we have proactively adopted enhanced corporate governance standards applicable to our category, including the constitution of key board committees and increased transparency in our disclosures. These steps reaffirm our commitment to sound governance, stakeholder accountability, and long-term value creation. At the heart of our journey is a focus on responsible leadership—balancing growth with integrity, and performance with purpose.

Our growing recognition across key institutions underscores the strength of our market position and technological expertise. VGIL's E-Banker CBS software has been widely adopted and acknowledged for its reliability and impact, particularly within the cooperative banking sector in Maharashtra, where it has achieved the highest number of successful implementations among District Central Cooperative Banks.

Our track record includes the successful execution of four large-scale, internationally funded projects, such as the Maharashtra Agriculture Competitiveness Project and the MAIIC initiative in Malawi. These achievements reflect our ability to meet the rigorous standards required for complex, multilateral engagements.

Such endorsements and implementation success provide us with a distinct competitive edge—enhancing our credibility among global stakeholders and strengthening our positioning for future international development initiatives.

The success we celebrate today would not have been possible without the unwavering support, dedication, and trust of our valued stakeholders. I extend my heartfelt gratitude to our clients, who have placed their confidence in our solutions and continue to partner with us in their digital transformation journeys. Your trust motivates us to continuously innovate and deliver exceptional value.

To our employees—the true architects of our success—I express my deepest appreciation for your dedication, expertise, and commitment to excellence. Your passion for innovation, quality, and customer satisfaction has been instrumental in achieving our remarkable growth and market recognition. As we embark on our journey to expand from 350+ to 500 employees by FY 2027-28, we remain committed to fostering a culture of continuous learning, professional development, and personal growth.

I acknowledge our shareholders, whose overwhelming response to our IPO and continued confidence in our strategic vision provide the foundation for our ambitious growth plans. Your investment is not merely financial capital but a partnership in our mission to transform businesses and communities through technology.

Our partners, vendors, and the broader ecosystem of stakeholders who support our operations deserve recognition for their contributions to our success. The collaborative relationships we have built across our value chain enable us to deliver comprehensive solutions and maintain our competitive advantages.

The global technology landscape continues to evolve at an unprecedented pace, driven by artificial intelligence, digital transformation, and the growing demand for secure, scalable solutions. In India, the digital payments market has experienced phenomenal growth, expanding from 2,071 crore transactions in FY 2017-18 to approximately 22,190 crore transactions in FY 2024-25. This rapid expansion, fueled by increased adoption of digital payment methods and the dominance of platforms like UPI, presents substantial opportunities for our V-Pay platform to capitalize on the burgeoning demand for seamless, secure, and innovative payment solutions.

The cooperative banking sector, where we have established a dominant position, continues to undergo digitalization, creating significant opportunities for our specialized solutions. Government digitalization initiatives across federal and state levels provide additional growth avenues for our proven e-governance capabilities.

Internationally, emerging markets in Africa and Asia Pacific present compelling opportunities for our cost-effective, comprehensive solutions designed specifically for banks, NBFCs, and emerging market financial institutions. Our decade-long presence in Tanzania, coupled with successful deployments across Africa, lays a solid foundation for accelerated growth and expansion.

As we advance into FY 2025-26 and beyond, VGIL is positioned at the forefront of a rapidly evolving technology landscape. Our vision extends beyond traditional product development to encompass becoming a transformative force in the global financial technology landscape, empowering businesses and governments with innovative solutions that drive economic progress and improve quality of life across communities.

We are committed to investing in emerging technologies, including artificial intelligence, machine learning, blockchain, and cloud computing, to maintain our technological leadership and competitive advantages. Our focus on research and development, evidenced by our dedicated team of R&D engineers, ensures that we remain at the cutting edge of industry developments.

Our expansion into new product categories, international markets, and emerging technologies will be guided by our core principles of innovation, customer-centricity, and operational excellence. We will continue to leverage our specialized expertise while diversifying our offerings to capture new market opportunities and create additional value for all stakeholders.

As we pursue aggressive growth targets, we remain committed to sustainable business practices that create long-term value for all stakeholders. Our approach to environmental stewardship, social responsibility, and governance excellence will continue to guide our decision-making and operational practices.

Our digital transformation solutions inherently contribute to environmental sustainability by reducing paper consumption, energy usage, and carbon footprint through comprehensive digitalization of banking, ERP, and governance processes. We will continue to develop solutions that enable our clients to operate more efficiently while reducing their environmental impact.

The transformation from a regional IT firm established in 1997 to a publicly listed SaaS solutions provider in 2025 demonstrates our ability to evolve, adapt, and thrive in changing market conditions. Our commitment to innovation, operational excellence, and stakeholder value creation remains unwavering as we embark on this next phase of growth.

The future belongs to organizations that can seamlessly blend technological innovation with deep domain expertise, and combine operational excellence with scalability and strong financial performance. VGIL embodies these qualities and is well-positioned to lead the digital transformation of financial services, enterprise operations, and governance systems across global markets.

I invite you to join us on this exciting journey as we continue to Rise, Transform, and Excel, creating value for all stakeholders while contributing meaningfully to the digital transformation of businesses and communities worldwide.

Thank you for your continued trust, support, and partnership.

With Warm regards and optimism for the future,

Chairman & Executive Director