About Takyon Networks Limited

BUSINESS OVERVIEW

Takyon Networks is engaged in delivering comprehensive networking and IT infrastructure solutions to a wide range of clients, including government agencies and corporate enterprises. The service portfolio includes IT networking, data center solutions, IT security and surveillance, cloud and managed services, along with maintenance and technical support under formal contracts.

Known for its customized offerings and client-specific solutions, the company serves major sectors such as Telecom, IT & ITeS, Energy, Education, Railways, Public Administration, and Defense. Core services encompass infrastructure design, consulting, turnkey systems integration for large-scale network and data centers, and facilities management for multi-location setups.

Takyon Networks is an authorized System/Network Integrator (SI) at the national level (UP Circle) for Bharat Sanchar Nigam Limited (BSNL) and is empaneled with UPDESCO, UPELC, ITI, and UPRNN for IT solution delivery. The company is an authorized partner of leading OEMs, including Ruckus, Juniper, Sophos, Hitachi, Nokia, HP, and Dell Technologies.

Headquartered in Lucknow, Uttar Pradesh, with a branch in New Delhi, operations are focused entirely within India, generating domestic revenue. Infrastructure includes high-grade development systems, firewall and IDS/IPS systems, redundant leased lines, and uninterrupted power supply.

Quality assurance is reinforced through certifications like ISO 27001:2012, ISO 20000-1:2018, ISO 9001:2015, and CMMI Maturity Level 3. The company has been recognized as Partner of the Year – Government (2022) by Palo Alto Networks, reflecting its leadership in cybersecurity solutions.

As on June 30, 2025 the company has 533 employees on payroll and no employees engaged on a contractual basis. The Banker to the company is HDFC Bank Limited.

INDUSTRY ANALYSIS

India's IT Industry: A Global Digital Powerhouse

India's Information Technology (IT) industry continues to be a cornerstone of economic growth, innovation, and employment. Contributing 7.5% to India’s GDP in FY23, the sector is poised for further expansion, with projections estimating a US$ 350 billion valuation by 2026, potentially increasing its GDP share to 10%.

Industry Size & Workforce Strength

• The Indian IT industry generated US$ 245 billion in revenue in FY23, up from US$ 227 billion in FY22, marking a 15.5% YoY growth.

• It added 2.9 lakh new jobs in FY23, raising the total workforce to 5.4 million.

• Direct employment in the IT services and BPO/ITeS segment is expected to grow significantly, as India will require 30 million digitally skilled professionals by 2026.

• India is expected to have 60–65 million jobs demanding digital skills by 2025–26, highlighting an urgent need for large-scale digital skill development.

Market Segmentation (2023 Estimates)

Segment	Market Size	Export Share	% of IT-BPM Revenue
IT Services	US$ 125 Billion	81%	51.2%
Software Products & Engineering	US$ 54 Billion	83.9%	22.1%
Hardware	US$ 18 Billion	Domestic-focused	7.4%

India's Global Standing

• India ranks first in AI skill penetration and third globally in AI talent pool.

• According to AWS, India is expected to see a 9x increase in digitally skilled workers by 2025, with ~3.9 billion training sessions expected.

• Japanese investments in Indian IT grew 4x between 2016-2020, totaling US$ 9.2 billion over two decades.

• Service exports from India, driven largely by IT and ITeS, are projected to reach US$ 1 trillion by 2030.

---

Emerging Trends & Strategic Initiatives

1. Global Delivery Expansion

Indian companies are expanding internationally. For instance, TCS planned to hire 1,500 tech professionals in the UK, enhancing its delivery capabilities.

2. Data Annotation & AI Hub

India is becoming a global hub for data annotation and AI services, expected to grow from US$ 250 million in FY20 to US$ 7 billion by 2030.

3. New-Age Technologies

Rapid adoption of cloud computing, big data analytics, social media, AI, and blockchain is driving digital transformation. The SMAC (Social, Mobility, Analytics, Cloud) market alone was worth US$ 225 billion in 2020.

---

Growth Drivers

1. Public Cloud Market

• India’s public cloud market is expected to grow at a CAGR of 23.4%, reaching US$ 17.8 billion by 2027.

• Cloud adoption has surged 4x since FY19, forming a backbone for digital innovation.

2. Cybersecurity & Policy Support

• MeitY has approved 14 applicants under the PLI scheme for IT hardware.

• Launch of IndiaAI Mission in 2024 with an outlay of Rs. 10,300 crore (US$ 1.2 billion) to promote AI infrastructure, innovation, and workforce development.

3. Talent Pool

• India is home to 16% of the global AI talent and ranks fifth in AI research publications.

• NASSCOM projects a demand of 2 million cloud technology professionals by 2025.

---

Cloud and Data Centre Boom

Hyper-Scale Cloud Growth

• Global data centre investments are expected to exceed US$ 200 billion annually by 2025.

• India’s data centre market will grow from US$ 5.42 billion in 2022 to US$ 9.96 billion by 2028.

• Key data centre hubs: Mumbai, Chennai, Bangalore, Hyderabad, NCR.

Major Investments

• AWS launched its second Indian region in Hyderabad, with US$ 4.4 billion investment expected to generate 48,000 full-time jobs by 2030.

• Amazon-Airtel partnership will see US$ 1.6 billion invested in Hyderabad data centres.

• Google Cloud partnered with SuperGaming to support India’s gaming ecosystem.

• Ascendas India Trust committed Rs. 1,200 crore (US$ 160.67 million) for its first Indian data centre.

---

Future Outlook & Government Support

Key Initiatives & Forecasts

• India's digital economy is projected to reach US$ 1 trillion by 2025.

• The government is emphasizing AI, cybersecurity, 5G, and digital finance.

• The RBI aims to reduce online transaction costs, encouraging a cashless economy.

• India’s IT spending is projected to hit US$ 138.6 billion in 2024, growing 11.1% YoY.

---

Conclusion: Strong Momentum with Strategic Focus

India’s IT industry is rapidly evolving as a global digital services powerhouse, supported by a growing talent pool, government backing, and massive investments in emerging technologies. With a target to reach US$ 500 billion in revenue by 2030, the industry is well-positioned to shape the future of global digital transformation.

BUSINESS STRENGTHS

1. Comprehensive IT Solutions:
Offers end-to-end IT services across the entire business life cycle, including enterprise networking, network security, AV and collaboration services, security and surveillance, data centers, cloud solutions, and managed services. Solutions are tailored for businesses of all sizes and maturity levels.

2. Diverse Client Portfolio:
Serves a wide range of industries such as government, education, hospitality, and banking. Long-standing relationships with key clients drive repeat business and enhance competitive positioning.

3. Robust Order Book:
Maintains an order book exceeding ₹7,159.46 lakhs as of June 30, 2025, providing strong revenue visibility and supporting strategic expansion and capital planning.

4. Experienced Leadership:
Led by a seasoned management team—Chairman & Managing Director Manish Kumar Sharma (23+ years) and CEO Neeraj Kumar (26+ years)—with deep expertise in IT infrastructure. Backed by a qualified board and leadership team focused on innovation, operational excellence, and market growth.

BUSINESS STRATEGIES

1. Expansion into Emerging Technologies:
Plans underway to diversify into IoT and Artificial Intelligence, with current efforts focused on IoT applications in solar panel-based climate and weather monitoring. Additional opportunities are being explored in cybersecurity through the development of Security Operations Centres.

2. Customer Relationship Management:
Emphasis on delivering timely, high-quality services to strengthen client relationships and drive repeat business.

3. Talent Acquisition and Development:
Focused on attracting, nurturing, and retaining skilled professionals through structured recruitment, training programs, and a performance-driven, innovation-led work culture.

4. Operational Efficiency:
Aiming to enhance cost-effectiveness by improving operational processes, conducting regular project reviews, implementing corrective actions, and adopting advanced technologies.

BUSINESS RISK FACTORS & CONCERNS

1. Vendor Dependency:
Operations are significantly dependent on a limited number of vendors for procurement of IT equipment such as switches, routers, wireless and security devices. No long-term contracts are maintained with suppliers, increasing the risk of supply disruptions or price volatility. Purchases from the top 10 vendors accounted for 72.20%, 64.16%, and 71.15% of procurement costs in FY2025, FY2024, and FY2023, respectively.

2. Government Tender Dependence:
A major portion of revenue is derived from government-related contracts awarded through competitive tendering. Contracts are typically awarded to the lowest bidder meeting eligibility criteria, exposing the business to pricing pressure and uncertainty in bid outcomes.

3. Customer Industry Concentration:
Revenue is concentrated among select customer industries such as public administration, IT & ITeS, energy, infrastructure, railways, and education. Loss of key clients or reduced spending in these sectors may adversely impact revenue and financial performance.

Summary:
Takyon Networks faces business risks related to vendor concentration, reliance on government tenders for project acquisition, and limited customer industry diversification. These dependencies increase exposure to pricing pressures, bid competitiveness, and customer retention challenges.