GFL Ltd Management Discussions

Indian Economy - Overview

India continues to chart a strong growth path despite global economy navigating the uncertainty, due to geopolitical tensions, ongoing conflicts. This is reflected in the First Advance Estimates (FAE) for FY26 released by the Ministry of Statistics and Programme Implementation (MoSPI). These estimates place the real GDP growth rate at 7.4 per cent, surpassing earlier projections by various agencies and the estimates in the Economic Survey of 2024-25. It rearms Indias status as the fastest-growing major economy for the fourth consecutive year. On the demand side, domestic demand continues to anchor growth, supported by a strengthening momentum in capital formation. On the supply side, manufacturing activity has gained traction, and services continue to drive overall expansion, led by steady performance in trade, transport, and financial and professional services.

In the December 2025, RBIs Monetary Policy Committee report revised its inflation projection from 2.6 per cent to 2.0 per cent owing to a good kharif harvest and healthy rabi sowing. IMF has projected an inflation rate of 2.8 per cent in FY26 and 4.0 per cent in FY27. The RBIs forecast for headline Inflation for Q1 and Q2 of FY27 currently stands at 3.9 and 4 per cent.

India has recorded one of the sharpest declines in headline inflation, amounting to about 1.8 percentage points. Importantly, this disinflation has occurred alongside robust GDP growth of 8 per cent in the H1 of FY26, underscoring Indias strong macroeconomic fundamentals and its ability to sustain growth while effectively managing price pressures, or in other words, without overheating.

Outlook

The FY26 was an unusually challenging year for the economy on the external front. Heightened uncertainty in global trade and the imposition of high, penal taris created stress for manufacturers, particularly exporters, and effected business confidence.

The government responded by using this crisis as an opportunity to push through key measures such as GST rationalisation, faster progress on deregulation, and further simplification of compliance requirements across sectors. FY27 is therefore expected to be a year of adjustment, as firms and households adapt to these changes, with domestic demand and investment gaining strength. That said, it must be acknowledged that the external environment remains uncertain, which shapes the overall outlook.

* Source: Economic Survey 2025-26

Industry overview

Media and Entertainment Industry - Overview

The year 2025 marked a pivotal inflection point for Indias Media

& Entertainment industry, as it entered a new phase of scale, innovation and transformation. Beyond growth in numbers, this year reflected evolving audiences engagement with the convergence of technology with storytelling.

The industry continued its steady year-on-year growth in 2025, reaching INR 2.78 trillion (US$ 32 billion), a 9% increase that outpaced Indias nominal GDP per capita growth of 7%. Importantly, the industrys performance surpassed last years estimates, reinforcing confidence in the sectors long-term trajectory and its ability to adapt to evolving market dynamics.

Indian M&E sector grew 9% in 2025 to reach INR 2.78 trillion. It is further expected to grow by INR 516 billion to reach INR 3.3 trillion in 2028.

M&E sector growth (values in INR in billion)

[to be represented in the form of graph by a designer]

2019	2022	2024	2025	2028E	CAGR 2025- 2028
1,922	2,237	2553	2,785	3301	6.0%

Source- EY FCCI, M&E Report 2026 titled "Stories Scale and Impact: Unlocking Indias media and entertainment economy".

In 2025, Digital Media demonstrated tremendous growth followed by Live Events, Animation & VFX. Out-of-Home Media and Music segment also registered decent growth. Filmed entertainment segment experienced growth of 7% compared to previous year while Online Gaming along with Television registered negative growth of 22% and 5% respectively.

Outlook

The Media and Entertainment (M&E) sector in India is expected to maintain its growth trajectory, and is expected to grow at a CAGR of 6% to reach INR 3.3 trillion by 2028 led primarily by growth in digital media, live events and filmed entertainment.

Indian Filmed Entertainment Industry

The film industry delivered record results, with over 1,900 releases and 37 films crossing INR 1 billion or more at the box office, underscoring the continued strength of theatrical entertainment alongside television and digital platforms. Films like Dhurandhar shattered records, highlighting the continued strength of theatrical entertainment alongside television and digital platforms.

The total screen count was estimated at 10,033, which is around 1.00% higher compared to previous year according to UFO Moviez estimates.

It is anticipated that this segment will continue to grow, at a CAGR of 7% to INR 253 billion by 2028, led by increased focus on Indian Animation and Anime, increase in value of music rights, and emergence of lower-cost cinema infrastructure to bridge the gap across thousands of Indian cities that do not have cinema halls.

Filmed entertainment is expected to grow based on increases in the number of screens as well as more high-concept spectacular films (both Indian and Hollywood), growth of adult animated and anime films, and a rebound in digital rights values.

RISK AND CONCERNS

The US foreign film tariRs s can impact international revenues

The proposed tariRs of 100% tariRs on all films produced outside the US, if eRs ective, would double the import cost for US distributors, making it commercially unviable to release many non-US films, including mainstream film releases in Hindi, Tamil and Telugu. Thus, the increased tariRs has raised significant concerns for Indian filmmakers, given its growing dependence on the US as a key overseas market.

Pricing caps can challenge growth

The pricing cap may compress revenues for multiplexes and premium screens, limit technology upgrades and aRs ect the viability of high-investment formats such as IMAX and 4DX, with lower ceilings also impacting box-oRs ce performance during peak periods

Quality content

55%^$ Cinemagoers indicated that the key concern about going to cinema is quality of content.

Short digital windows are another impediment

While 81%^$ cinemagoers believed streaming releases were within eight weeks of theatrical release, 34%^$ were willing to wait if the streaming window was short and 53%^$ had waited for one or more films to release on streaming platforms in the last three months.

$All data has been sourced from the EY-Multiplex Association of India report "State of film exhibition in India"

Mutual Funds Industry

Since the pandemic, domestic retail participation has witnessed an unprecedented surge, both direct (trading in markets through their demat accounts) and indirect channels (through mutual funds). Stable macroeconomic fundamentals, corporate earnings prospects, technological innovations enabling seamless investor onboarding Monetary Management and Financial Intermediation through simplified KYC processes and strong regulatory oversight have collectively contributed to this expansion, thereby financializing savings from traditional channels to formal financial assets.

Findings from SEBIs Investor Survey 2025 further underscores this transformation, as nearly 63 per cent of the households surveyed are aware of at least one securities market product.*

* SEBIs Investor Survey 2025, https://www.sebi.gov. in/reports-and-statistics/research/sep-2025/investor-survey-2025Rs 96982.html.

During FY26 (till December 2025), 235 lakhs demat accounts were added, pushing the total count beyond 21.6 crore. A key milestone was the crossing of the 12 crore mark for unique investors in September 2025, with nearly a fourth of them being women.

The post-pandemic period marked a decisive inflexion in household engagement with equity markets. The unique investor base expanded sharply in the initial years following the pandemic, rising from around 3.1 crore in FY20 to over 11 crore by FY25. Although net additions to the investor base have moderated in the current fiscal, net inflows of domestic investors into equity markets have remained resilient. Over the past five years, cumulative inflows by domestic investors into the equity markets have been substantially higher than from foreign investors. This shift highlights the increasing ability of domestic savings to support equity markets, stabilise the market, and mitigate the volatility associated with external capital flows. The mutual fund industry also expanded, with 5.9 crore unique investors as at the end of December 2025, of which 3.5 crore (as of November 2025) were from non-tier-I and tier-II cities, underscoring the diRs usion of financial participation beyond traditional urban centres.

The rise in retail participation through mutual funds is reflected in the doubling of unique investors from 2.9 crore in FY21 to 6.09 crore as of February 2026 (Source Angel One report). The total number of folios (excluding FoF domestic schemes) increased from 23.45 crore at the end of FY25 to 27.39 crore at the end of March 2026, and retail investors accounted for 90.50% (24.80 Cr) folios holding mutual fund units worth Rs 20 lakh crore. This surge in participation, "despite not very strong market performance" as Equity Markets were lacklustre in 2025-26.

The mutual fund segment presently has 9.72 crore Active Systematic Investment Plan (SIP) accounts, with cumulative SIP inflows of Rs 15.11 lakh crore since inception. Monthly average gross SIP flows have grown significantly in last year, from Rs 0.23 lakh crore to Rs 0.32 lakh crore in March 2026. Aided by these sustained inflows, mutual fund ownership in Indian listed companies has risen to a fresh all-time high of 9.5 per cent in the quarter ending September 2024, from 8.7 per cent in FY24.

Risk and Concerns

There are several external factors leading to meaningful market correction in the coming future. Should such a correction occur, it could have a cascading eRs ect on India, especially given the increased participation of young, relatively new retail investors. Many of these investors that have entered the market post-pandemic have never witnessed a significant and prolonged market correction. Hence, if one were to occur, its impact on sentiment and spending may be non-trivial.

Outlook

In the midst of volatile foreign capital flows, domestic institutional investors (DIIs), particularly mutual funds and insurance companies, have counterbalanced the volatility of foreign investment outflows and have provided much-needed support to the markets. The DIIs have consistently maintained their position as net buyers in Indian equities, effectively countering FPI selling and reinforcing the strength of the domestic market. The increasing significance of DIIs as large net buyers is further reflected in their rising shareholdings. The share of DIIs 76 (by value of holdings) surpassed that of foreign institutional investors (FII) 77 for the first time in Q4 FY25 and has now reached an all-time high in Q2 FY26. Domestic MFs have significantly contributed to the trend of the share of DIIs surpassing that of FIIs. In Q2 FY26, the share of MFs (by value of holdings) reached an all-time high of 10.9 per cent. Therefore, even though FIIs remain important participants in the Indian capital market, DIIs, along with retail investors and high-net-worth individuals, have been playing a strong counterbalancing role to the decisions made by FIIs regarding market participation.

# Source : Economic Survey 2025-26

Company Overview

GFL Limited operates as a holding company of its wholly owned subsidiary INOX Infrastructure Limited. It holds investments in PVR INOX Limited, one of the countrys prominent multiplex chains. Additionally, the Company is actively involved in the business of Mutual Fund distribution. This integrated structure allows GFL Limited to leverage the strengths and resources of its subsidiary company, INOX Infrastructure Limited while maintaining a significant presence in the entertainment industry through its investments in PVR INOX Limited. Furthermore, the Companys engagement in the Mutual Fund distribution business adds another dimension to its diversified portfolio, enabling it to cater to a wider range of financial services.

Human Resources

The Company is fully committed to attracting and retaining highly skilled professionals through rigorous and meticulous recruitment processes. Employees receive comprehensive training and development programs that aim to empower them to excel in their respective roles. Employee welfare and well-being are of utmost importance, and the Company places significant emphasis on creating a safe and supportive work environment, fostering open communication and conducting regular feedback sessions. Moreover, GFL Limited actively engages in initiatives that enhance employee engagement, fostering a culture of continuous learning and improvement. Additionally, the Company adheres strictly to all labour laws and regulations, maintaining a strong commitment to promoting fair treatment, diversity, and equal opportunities for its workforce. As of March 31, 2026, the Company has 4 employees.

Financial Performance

Key Financial Highlights

(Rs in Lakhs)

Particulars	FY 2026	FY 2025
Revenue from operations	368.04	331.61
EBITDA	204.64	204.07
PBT	204.42	203.66
PAT	163.39	(3,402.67)
Net worth	2,60,560.06	2,60,396.83

Key Financial Ratios

Particulars	Formulas	FY 2026	FY 2025
Current Ratio (in times)	Current Assets/ Current Liability	1.67	1.22
Operating Profit Margin (in %)	EBIT/Total Income	55.60	61.53
Net Profit Margin (in %)	PAT/Total Income	44.39	(1,026.11)
Return on Net Worth (in %)	PAT/Average Net worth	0.06	(1.31)

Accounting Treatment:

In the preparation of financial statements for the year under review, the company has followed the treatment as prescribed in the Accounting Standards.

Risk Management

Risk management holds paramount importance within the operational framework of GFL Limited. The Company embraces a comprehensive and proactive approach to identifying, assessing, and mitigating potential risks across all facets of its business operations. Regularly conducted rigorous risk assessments empower GFL Limited to pinpoint vulnerabilities and devise robust risk mitigation strategies. The Company vigilantly monitors market fluctuations, industry trends, regulatory changes, and financial exposures to proactively address potential challenges. Additionally, GFL Limited strategically maintains a diversified investment portfolio to effectively reduce the impact of market volatility. By prioritising risk management, the Company effectively safeguards its assets, ensures financial stability, and fosters a resilient organisational culture, further reinforcing its commitment to delivering reliable services amidst the ever-evolving landscape of the entertainment and financial services sectors.

Internal Control Systems

The Company has formulated and executed internal financial control systems as necessitated by its business operations. These controls undergo regular scrutiny by internal auditors, encompassing all vital business functions. Notable audit findings, along with corresponding action plans, are reported to the Audit Committee, which oversees the Companys overall control environment. Due to its investment in subsidiary, the Company faces minimal risks. However, given the Companys scale and nature, it takes a proactive approach to systematically recognise and address all potential business risks.

Cautionary statement

This document includes forward-looking statements regarding GFL Limiteds anticipated future events and financial as well as operating outcomes. As inherent in such statements, the Company has made assumptions and is exposed to inherent risks and uncertainties. There exists a significant risk that these beliefs, predictions, and other forward-looking statements may not materialise accurately. Readers are advised to exercise caution and refrain from placing undue reliance on these statements, as numerous factors could result in actual future results and events diRs ering materially from those expressed in the forward-looking statements. Consequently, this document is subject to a disclaimer and is qualified in its entirety by the assumptions, qualifications, and risk factors stated in GFL Limiteds Managements Discussion and Analysis in the Annual Report for FY 2025-26.