ABans Enterprises Ltd Management Discussions

1. Global Economy

Financial Year ("FY") 2025-26 was a year that unfolded in three chapters. It opened with the world carrying forward the momentum of 2024 with growth holding up, trade flowing and then from April 2025, the United States imposed sweeping tariffs on India and other nations, disrupting trade and rattling confidence and later by the final quarter, a bilateral India US trade deal brought partial relief. Just as the year was closing, a new conflict erupted in the Middle East which changed the outlook for energy and global growth once again. The International Monetary Funds World Economic Outlook ("IMF WEO"), released on April 14, 2026 titled "Global Economy in the Shadow of War", which characterises the current macro environment as one where "after withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East." This conflict which involves US and Israeli military strikes on Iran with the closure of the Strait of Hormuz, and serious damage to critical energy facilities has disrupted global oil and gas supplies, thereby raising inflation expectations, and introducing significant downside risk to an otherwise improving global growth trajectory. If the conflict remains limited in duration and scope, global growth is projected to slow down to 3.1% in 2026 and 3.2% in 2027 respectively.

US trade policy remained a defining macro variable through the first three quarters of FY 2025-26. India faced a cumulative US tariff burden of 50% on most exports combining a 10% universal baseline, 25% reciprocal tariff, and an additional 25% penalty linked to Indias energy trade with Russia viz. from August 2025 through early February 2026. A significant de-escalation occurred in Q4 of FY 2025-26 on February 02, 2026 where President Donald Trump announced a bilateral trade framework with India formalized through an

Executive Order thereby reducing the effective US tariff on most Indian goods from 50% to 18% (10% baseline + 18% reciprocal tariff, along with 25% Russia oil penalty fully removed). This reduction was confirmed in the IMFs April 2026 WEO which cited it as one of two factors behind the marginal upward revision to Indias FY 2026- 27 growth forecast. For exporters of gems, jewellery, textiles, and engineering products, this was significant relief.

For precious metals, FY 2025-26 was a year of historic and violent price movements. Gold and silver prices in rupee terms reached record levels reflecting both the FY 2025-26 operating environment and the continuation of the global supercycle from Current Year 2025 ("CY").

Note: the commodity price statistics below the global market environment across FY 2025-26 (April 2025 – March 2026) as well as CY 2025 context where specified.

• Gold (FY 2025-26 trajectory): Gold rose from around $2,300–$2,400 per ounce in April 2025 to a historic high of over $5,500 in January 2026. After the Middle East conflict erupted in February 2026, gold surged again before settling at somewhat lower, though still elevated, levels through March 2026. In India, gold on Multi Commodity Exchange of India Limited ("MCX") hit approximately 1.7 lakh per 10 grams at its peak roughly doubling the price in the past two years.

• Silver (FY 2025-26 trajectory): Silver had its most dramatic year in modern History. It hit an all-time high of over $83 per ounce in late December 2025, then corrected sharply within minutes in one of the most extreme intraday moves in commodity market history. Silver subsequently stabilised at elevated levels and ended the year well above where it started. In India, MCX silver peaked at approximately 2.9 lakh per kilogram. Silver is unique as it is both a safe-haven asset for investors and an industrial metal essential for solar panels and electric vehicles, which makes it especially sensitive to world events.

Middle East conflict and energy prices:When US and Israeli forces struck Iran in late February 2026, the Strait of Hormuz was closed which is a waterway through which significant share of the worlds oil and gas flows. Oil prices rose sharply. For a country like India, which imports the bulk of its crude oil requirements, this was a serious complication arriving right at the end of the financial year.

Real GDP Growth (%)	CY 2024 (A)	CY 2025 (E)	CY 2026 (P)
World Output	3.3%	3.4%	3.1% (ref) / 2.5% (adv) / 2.0% (sev)
Advanced Economies	1.8%	1.9%	1.8%
Euro Area	0.8%	1.4%	1.1%
Emerging Markets & Dev. Economies	4.3%	4.4%	3.9%
Middle East & Central Asia	—	3.6%	1.9%
China	5.0%	5.0%	4.4%
India (FY basis — April–March)	6.5% (FY25) (FY 24-25, NSO FAE- 6.5%)	7.6% (FY 25-26, NSO FAE- 7.4%))	6.5%

(A) = Actual; (E) = Estimate; (P) = Projection. Reference / Adverse / Severe = IMF April 2026 WEO scenarios based on Middle East conflict duration.

India GDP on Indian fiscal year basis (April March) is 7.4% which was NSO First Advance Estimate for FY 2025-26 (released January 7, 2026). IMF WEO projected 6.5% in April 2026 for FY 2026-27.

Outlook on Global Economy

The International Montetary Fund ("IMF") maps three possible futures. In the best case a short conflict fading by mid-2026 where global growth reaches 3.1% in 2026 and 3.2% in 2027, with inflation rate at 4.4%. If the conflict broadens and oil prices rise 80%, growth falls to 2.5% with inflation at 5.4%. In the worst case, global growth could slow down to 2.0%. The IMFs base case assumes oil at $82.22 per barrel.

2. Indian Economy

Even as much of the world navigated through trade disruptions and conflict. India delivered its best GDP growth in two years and maintained its position as the worlds fastest growing major economy, reinforcing the countrys standing as a global growth leader even as the international environment grew significantly more complex. The National Statistical Office ("NSO") estimated real GDP growth at 7.4% for FY 2025-26, up from 6.5% in the previous year. In rupee terms,

Indias economy reached 357.14 lakh crore. The IMF independently estimated Indias growth at 7.3%, noting that the second half of the year was particularly strong.

India Real GDP Growth (%)	FY21-22	FY22-23	FY23-24	FY24-25 (PE)	FY25-26 (FAE)
Real GDP Growth (%)	9.7%	7.6%	9.2%	6.5%	7.4%

(PE) = Provisional Estimates; (FAE) = First Advance Estimates released January 7, 2026.

This growth reflects India firing on all three economic engines. The services sector which is driven by strong performance in financial services, real estate, professional services, trade, hospitality, and public administration which grew at 9.1%. Manufacturing grew at 7.0%, supported by government incentive schemes. Agriculture grew at 3.1%, helped by a well-distributed monsoon.

Indias rise on the world stage is now a fact. In 2025, India overtook Japan to become the worlds fourth-largest economy by size, and is already the third-largest by purchasing power. India targets $8 trillion by 2035 and $30 trillion by 2047. Reflecting this, the capital investment budget for FY 2025-26 was 11.21 lakh crore and 3.1% of GDP.

Monetary conditions turned accommodative through FY 2025-26. The RBI cut its repo rate by 1 percentage point from 6.25% to 5.25%, its lowest since July 2022 as inflation stayed well within the 2 6% target band. Lower rates reduced borrowing costs for businesses and households, providing a real tailwind for investment and spending.

Indias commodity markets deepened structurally through FY 2025-26. The India International Bullion Exchange ("IIBX") at GIFT City consolidating its role as the countrys primary institutional gold trading and import platform. Full details of the IFSCA framework circular, TRQ regime, and AELs institutional standing are covered in Section 3E of this report.

Outlook on Indian Economy

Looking ahead, the IMF raised Indias FY 2026-27 growth forecast to 6.4% an upward revision that stands out in a WEO otherwise marked by widespread downgrades due to the Middle East conflict. Two factors that drove this upgrade was the strong momentum which India carries from FY 2025-26 and improved US trade access following the deal in February 2026.

Indias long-term story has been young workforce, improving infrastructure, disciplined spending, deepening financial markets which still remains intact.

The near-term watch point is energy, given Indias heavy dependence on imported crude oil of its crude oil and with the Hormuz Strait having disrupted and the US waiver on Russian crude having been expired in April 2026, energy supplies became genuinely challenging in the years final weeks. The RBI held its rate at 5.25% in

February 2026 with a neutral stance, keeping options open. If the conflict persists and oil stays at a higher rate cuts then it may need to pause.

3. Industrial Overview

Indias commodity market comprises both agricultural and non-agricultural segments, each playing a critical role in the countrys economic structure. Agricultural commodities primarily cover foodgrains, oilseeds, and plantation crops, while non-agricultural commodities spans energy, metals, and bullion.

Indias commodity markets experienced exceptional and historically unprecedented activity in FY 2025-26. Precious metals dominated the landscape where gold and silver reached generational price highs, the silver market experienced one of the most extreme intraday dislocations in its modern history (December 29, 2025), and the Middle East conflict in Q4 FY26 which added a new layer of geopolitical safe-haven demand. Each segment is discussed in detail in the sub-sections that follow.

Indias agricultural economy in FY 2025-26 maintained stability, supported by adequate monsoon distribution and improved farming practices.

The MCX, Indias premier platform for non-agricultural commodity derivatives, reported record notional turnover values in FY 2025-26 led by the bullion segment. Gold futures and options saw heightened activity as prices crossed 1 lakh per 10 grams for the first time and continued their ascent through the year, while silvers extraordinary volatility culminating in the December 29, 2025, at an all-time high above USD

86 per ounce followed by a sharp intraday reversal generated significant trading volumes across both the futures and options segments.

Base metals i.e aluminium, copper, lead, and zinc remained actively traded. US tariff actions on aluminium and steel temporarily disrupted global supply chains and created brief price gaps between Indian and international markets, generating arbitrage opportunities. Underlying demand stayed firm, fed by

Indias ongoing infrastructure push.

Bullion Markets — A Year for the History Books

FY 2025-26 was the most consequential year in the modern history of global bullion markets. Gold and silver simultaneously established new all-time price records, driven by a powerful convergence of monetary easing, geopolitical safe-haven demand, accelerating central bank accumulation, and a structural industrial demand revolution for silver that has fundamentally repositioned the metal in the global commodity landscape.

Gold crossed USD 4,000 per ounce for the first time in

October 2025 and went on to record fresh intraday highs in January 2026. The primary drivers were sustained central bank accumulation, a weaker US dollar as the Fed cut rates, and the safe-haven premium added by the Middle East conflict. Through year-end, gold held at elevated levels.

Silvers story was equally dramatic. Prices surged from approximately USD 28–30 per ounce at the start of the year to an all-time high above USD 86 per ounce on December 29, 2025, before one of the most violent intraday reversals in modern commodity history. Through Q4, silver stabilised in the USD 79–82 range.

This reflects silvers structural transformation from a monetary metal to an essential industrial commodity. Solar panels, EVs, and AI data centres are driving record industrial demand, sustaining the sixth consecutive year of structural supply deficit.

For bullion market participants, the message from FY 2025-26 is clear i.e in a year of generational price moves what separates winners from bystanders is the ability to operate in both the physical and derivative markets simultaneously. For AEL with physical procurement networks, derivative hedging across MCX, COMEX, and IIBX, and GIFT City institutional standing. FY 2025-26 was both the most demanding and the most consequential year in the Companys history. For gold and silver, the fundamentals remain supportive into FY 2026-27.

Closer to home, Indias bullion market reflected the same extraordinary story. Gold and silver prices reached levels that would have seemed impossible just two years ago. While record prices dampened jewellery buying volumes, they drove a surge in investment demand reshaping how Indian households, institutions, and businesses think about and engage with gold and silver.

In Indian rupee terms, gold reached approximately

1.7 lakh per 10 grams at its peak on the MCX during

FY 2025–26, more than double its levels two years earlier. Although this price appreciation moderated volume demand in the jewellery segment, Indias overall gold consumption remained resilient, reflecting the metals deep cultural significance and its growing role as an investment asset. The Reserve Bank of India "RBI" continued to augment its gold reserves during FY 2025–26, reinforcing golds strategic importance in Indias foreign exchange management. Golds share of Indias total foreign exchange reserves, which had risen to approximately 11% by early FY 2025 26, reflects a deliberate institutional preference for hard assets amid heightened global monetary uncertainty.

SilversperformanceinIndiawasequallyremarkable.The investment landscape for silver underwent a significant transformation in 2025, with both institutional and retail investors substantially increasing their exposure to the metal. MCX silver prices also touched record highs during FY 2025–26, rising multi-fold from levels recorded two years earlier. India emerged as the worlds largest importer of refined silver in calendar year 2025, with import values rising sharply year-on-year. This surge was driven by rising demand from Indias rapidly expanding solar manufacturing sector and electronics industry, alongside a growing base of silver investors attracted to the metals dual appeal as both a monetary and industrial asset.

A defining structural development for Indias bullion industry during FY 2025-26 was the further deepening of the India IIBX at GIFT City. The State Bank of India

"SBI" became the first public sector bank to execute a gold trade on IIBX as a Special Category Client, marking a key step in reshaping Indias bullion import framework. The IFSCAs comprehensive framework circular issued in October 2025 formalised the India–

UAE CEPA Tariff Rate Quota regime, enabling Qualified

Jewellers to import gold at concessional duty through IIBX, thereby providing a structural cost advantage and transforming the manner in which leading bullion participants access global supply. Abans Jewels Limited

("AJL"), wholly owned subsidiary of Abans Enterprises

Limited is a Qualified Jeweller, and its TRQ Holder status positions the Company at the centre of this evolving institutional framework.

Outlook on Bullion Markets

Looking ahead to FY 2026-27, Indias bullion market outlook remains compelling. Record of high gold and silver prices are expected to moderate jewellery volumes; however, investment demand is likely to remain strong, driven by global uncertainty arising from the conflict in the Middle East, RBIs continued accumulation of gold and growing retail familiarity with bullion as an asset class. The World Gold Council projects Indias gold consumption to be in the range of 750–850 tonnes for FY 2026-27. Silver demand is expected to remain robust, supported by Indias solar manufacturing ambitions, with the country targeting 500 GW of renewable energy capacity by 2030, as well as its rapidly growing electronics sector. For AEL, with its integrated physical and derivative bullion capabilities and institutional presence in GIFT City, this environment represents a strong strategic fit.

Indian Derivatives Market Overview

Indias derivatives market continued to evolve during FY 2025-26. Following SEBIs tightening measures in FY 2024-25, including larger minimum contract sizes and reduced weekly expiries, equity derivatives volumes stabilised at more sustainable levels, with a greater share of activity attributable to hedgers and institutional participants.

Commodity derivatives, by contrast, witnessed exceptional activity. Bullion derivatives on MCX registered record notional turnover, driven by the extraordinary appreciation in gold and silver prices, reflecting strong underlying hedging demand. The silver flash crash on December 29, 2025, demonstrated both the risks associated with volatile commodity markets and the importance of active derivative participation for effective hedging. SEBIs progressive opening of commodity derivatives to FPIs, AIFs, PMS, and mutual funds, along with the approval of electricity futures, marked further structural deepening of Indias derivatives market.

Indian Jewellery Manufacturing Industry

Indias jewellery manufacturing industry navigated a challenging operating environment during FY 2025-26, shaped by the dual pressures of record-high precious metal prices and a difficult export environment. Gold prices in Indian rupee terms crossed 1 lakh per

10 grams and continued to rise through the year, compressing jewellery demand in volume terms even as the investment-driven component of bullion consumption remained firm. Silver jewellery, which had already experienced a substantial decline of approximately 41% in export value in FY 2024-25, faced continued headwinds from elevated domestic prices, which moderated both retail and wholesale purchasing activity.

The export environment deteriorated further in half year ("H1") FY 2025-26 with the imposition of US reciprocal tariffs of 50% on most Indian goods, including gems and jewellery, effective August 2025. Indias total gems and jewellery exports, which had already declined by approximately 12% to around USD 28.5 billion in FY 2024-25, faced an additional structural headwind as the US tariff burden rendered Indian jewellery less competitive in what remains one of the industrys most important export markets. Cut and polished diamond exports, which had declined by approximately 17% year-on-year in FY 2024-25, the lowest level in nearly two decades, continued to face subdued international demand through much of FY 2025-26.

A meaningful improvement arrived in Q4 FY 2025-26. The India–US bilateral trade framework announced in

February 2026 reduced the effective US tariff on Indian goods from 50% to 18%, and the White House Joint

Statement specifically identifiedgems and diamonds for further tariff reduction upon finalisation of the Interim Agreement. While the full benefit of this improvement will be felt primarily in FY 2026-27, the directional change represents a significant positive development for Indias export-oriented jewellery manufacturers and provides a constructive backdrop for the year ahead.

The domestic jewellery market remained more resilient than the export segment during FY 2025-26, supported by Indias deeply embedded cultural affinity for gold, sustained wedding-driven demand, and a growing preference among high-net-worth consumers for premium, customised jewellery as both an adornment and an investment. The premium and bespoke segment, where design innovation, artisan craftsmanship, and brand trust command a price premium that provides greater resilience against commodity price volatility, demonstrated stronger resilience than the mass-market and export segments.

Outlook

The outlook for FY 2026-27 is cautiously optimistic.

The reduction in US tariffs from 50% to 18%, along with further reductions for gems and diamonds under negotiation, is expected to improve export economics. Domestically, the premium and luxury segment is expected to grow, supported by Indias expanding high-net-worth population and the enduring cultural significance of gold. AELs jewellery business, through

AJL remains focused on the premium domestic segment, where its handcrafted designs and trusted supply relationships position it well for continued growth.

4. Company Overview

AEL is positioned at the epicentre of Indias commodity markets, where the precision of derivatives trading meets the realities of physical delivery, and where market intelligence is translated into measurable outcomes, trade by trade. Incorporated in 1985 and re-envisioned under the current management since 2015, AEL participates in commodity derivatives, bullion, agricultural commodities, base metals, equity derivatives, and currency derivatives. The Company is listed on Bombay Stock Exchange Limited ("BSE") and Metropolitan Stock Exchange of India Limited ("MSEI") and operates through wholly owned subsidiaries in Dubai (UAE), Mauritius, and India, including AJL.

AJL holds Qualified Jeweller and Tariff status at the IIBX at GIFT City.

In a market defined by volatility, AELs competitive advantage lies in its ability to operate simultaneously across both worlds: financial and physical. On the derivatives side, the Company has deepened its risk management capabilities across MCX, NCDEX, COMEX, and the India International Bullion Exchange (IIBX) at GIFT City, bringing institutional discipline to markets that demand it most. On the physical side, AELs footprint spans Indias agricultural heartlands, global bullion procurement channels, and the structured delivery infrastructure that provides real-world grounding to its derivative positions.

FY 2025-26 was the year in which this model was tested at the highest scale the Company has ever encountered.

Nine months of consolidated revenues reaching 7,302 crore up 289% year-on-year. Record gold and silver prices accompanied by extreme intraday volatility. A

Middle East conflict reshaping global energy and safe-haven dynamics in the closing quarter.

AELs theme for FY 2025-26 "At the Epicentre: The Commodity Supercycle" reflecting both the prevailing market reality and an organisational conviction. The global commodity supercycle is real, structural, and continues to unfold. Indias role within this cycle is growing, becoming increasingly formalised, and deepening. AELs position at its centre, built through a decade of disciplined execution, institutional relationship-building, and an unwavering commitment to integrity, is not circumstantial; it is earned.

During FY 2025-26, AEL also formally expanded its participation into equity, equity derivatives, and currency derivatives markets, extending its intelligence-led trading model beyond commodities into Indias broader financial markets.

5. Business Segment Review

Intelligence in Action Across Markets

At AEL insight and execution are inseparable. Our diversified portfolio, spanning agri commodities, bullion, base metals, derivatives, equity markets, and bespoke jewellery, reflects a consistent commitment to strategy, structure, and scale.

5A. Agri Commodities

Rooted in Legacy. Adapted for Precision.

AEL continued to leverage Indias position as a global agricultural powerhouse during FY 2025-26, maintaining its active trading presence across commodities. Operations span both futures and spot segments, creating a resilient two-way trading model that serves a wide spectrum of agri-commodity clients.

5B. Bullion and Base Metals

Precision in Every Gram. Intelligence in Every Trade.

Gold, silver, aluminium, copper, and lead continued to anchor AELs commodity desk during FY 2025-26, but at a scale and price level that transformed every metric. Bullion trading revenues surged on the back of record gold and silver prices through the year. With every transaction fully hedged and physically backed, AEL retained its trusted position across Indias bullion corridors and manufacturing-linked base metal markets, navigating the most volatile precious metals environment in a generation without a single counterparty default.

AELs GIFT City Qualified Jeweller status and access to the India-UAE CEPA Tariff Rate Quota (TRQ) enabled duty-concessional gold imports through the India IIBX providing a structural procurement cost advantage over peers reliant on traditional nominated bank channels.

Bullion & Base Metals Turnover — Four-Year Track Record

Financial Year	Bullion ( Crores)	Base Metals ( Crores)	Total ( Crores)
FY 2022-23	1,087.95	2.66	1,090.61
FY 2023-24	926.18	88.41	1,014.59
FY 2024-25	3,497.73	56.58	3,554.31
FY 2025-26	13,432.79	261.18	13,693.97

5C. Commodity Derivatives

Turning Volatility into Precision. Every Cycle.

AELs derivatives desk remains the analytical and risk management core of its Commodity Intelligence model, translating data into strategy and strategy into performance. During FY 2025-26, the derivatives desk operated in the most demanding environment in the Companys history.

5D. Jewellery - Abans Jewels Limited

Artisan Precision Meets Premium Market Demand.

AJL, wholly-owned subsidiary of AEL, continued its operations in the premium B2B jewellery segment through FY 2025-26. With gold consumption in India remaining resilient despite record-high prices sustained by cultural demand, wedding-driven buying, and growing investment interest, design-led offerings maintained strong traction among high-net-worth retailers, premium stores, and discerning individual clients. The Companys collections spanning gold, diamonds, coloured stones, and fancy stones continued to serve as a mark of craftsmanship and trust for Indias top-tier jewellery retail ecosystem.

6A. Statement of Profit & Loss

6. Financial Overview

The consolidated financial statements of AEL and its subsidiaries have been prepared on a going concern basis in accordance with Indian Accounting Standards (Ind AS) under the Companies (Indian Accounting

Standards) Rules, 2015, notified under Section 133 of the Companies Act, 2013. Significant accounting policies are disclosed in Note 1 to the consolidated financial statem ent.

Particulars	FY 2025-26 ( Cr)	FY 2024-25 ( Cr)	YoY Change
Total Revenue from Operations	13812.82	3,878.16	256.90%
Finance Cost	12.28	18.12	-32.22%
Employee Cost	11.53	6.95	65.82%
EBITDA	23.73	51.77	-54.16%
EBITDA Margin (%)	0.17%	1.33%	116 bps
Profit After Tax (PAT)	3.96	18.85	-78.97%
Earnings Per Share ( )	0.57	2.70	-78.97%

6B. Statement of Assets and Liabilities

Particulars	FY 2025-26 ( Cr)	FY 2024-25 ( Cr)
Net Worth	216.38	206.13
Borrowings	155.11	251.56
Trade Receivables	131.90	145.41
Trade Payables	5.22	12.44
Inventories	21.93	221.90

6C. Key Financial Ratios Significant Changes (Schedule V, Reg 34(3), SEBI LODR Regulations)

Financial Ratio	FY 2025-26	FY 2024-25	Change (%)	Explanation (if 25% change)
Debt-Equity Ratio (x)	0.72	1.22	-41.24%	Decrease in borrowings has resulted an decrease in the ratio.
Return on Equity (%)	1.83	9.14	-79.96%	There has been a decrease in margin and corresponding reduction in profits.
Net Capital Turnover Ratio (x)	60.41	19.75	205.86%	Since there has been improvement in the working capital utilisation, it led to an improvement in the ratio during the financial year.
Return on Capital Employed (%)	8.80	22.39	-60.68%	There has been a decrease in margin and corresponding reduction in profits.
Financial Ratio	FY 2025-26	FY 2024-25	Change (%)	Explanation (if 25% change)
Return on Net Worth (%)	1.83	9.14	-79.96%	There has been a decrease in margin and corresponding reduction in profits.
Return on Investment (%) Inventory Turnover (days)	9.69	9.09	6.59%	-
	3	15	-80.00%	Increase in the ratio signifies efficient supply chain management and higher demand of the inventory.
Net Profit Margin (%) Current Ratio (x)	0.03	0.49	-94.16%	There has been a decrease in margin and corresponding reduction in profits. The company is able to meet short-term obligations (debts and payables due within a year) with its short-term assets effectively, it has led to an improvement in the ratio during the financial year.
	2.53	1.94	30.42%
Interest Coverage Ratio (x)	1.18	0.19	521.21%	There term borrowings resulting in increase in has been an decrease in long ratio..

Navigating the Landscape of Opportunities and Threats Leveraging Growth Potential (Opportunities)

• GIFT City and IIBX Deepening: AELs Qualified

Jeweller and TRQ Holder status i.e AJL positions it at the centre of Indias formalising bullion import architecture. As IIBX deepens institutionally with SBI and other PSUs joining as participants. AELs early-mover advantage creates lasting structural value.

• US–India Trade De-escalation: The reduction of US tariffs on Indian goods from 50% to 18% effective February 2026 improves the economics of Indias export-oriented businesses, including jewellery and gems. The Interim Agreement framework, once finalised,could further reduce tariffs on gems and diamonds specifically.

• Indias Commodity Market Formalisation:

SEBIs regulatory has broadened FPIs, AIFs, PMS, mutual funds in commodity derivatives; electricity futures approval deepens institutional liquidity on MCX and NCDEX, benefiting established participants like AEL.

Addressing Potential Challenges (Threats)

Middle East Conflict - Energy and Macro

Risk: India imports the bulk of its crude oil requirements. The Strait of Hormuz disruption removes a significant share of global crude supply previously transiting the waterway. With the US waiver for Russian crude purchases expiring April 11, 2026, India faces genuine energy supply constraints that could drive imported inflation, weaken the rupee, and force the RBI to pause its easing cycle. Higher oil prices also increase operating costs for commodity transportation, storage, and processing across AELs supply chain.

• Working Capital Intensity at Scale: Margin management, collateral management, and reconciliation demands are materially different from two years prior. and treasury systems must continue to scale commensurately.

• Bullion Price Concentration Risk: Bullion trading constitutes the substantial majority of AELs revenues. A sustained correction in precious metals prices or spread compression could disproportionately impact financial performance.

7. Risk and Concerns

Scale of treasury operations requires continued investment in risk management infrastructure as volumes compound.

Lending vertical requires capital scale-up to capture the full opportunity — internal accruals alone may not sustain the target growth rate.

8. Internal Control Systems and Their Adequacy

AEL maintains a robust internal control framework scaled to the nature and complexity of its operations across commodity trading, bullion, derivatives, equity markets, jewellery manufacturing, and cross-border operations. The Audit Committee of the Company provides central oversight, reviewing risks, evaluating mitigation strategies, and assessing control effectiveness at each meeting. An independent internal audit firm reports directly to the Audit Committee. In light of FY 2025-26s significant operational scaling, extreme precious metals volatility, Q4 Middle East conflict developments, and new equity/currency derivatives operations, the Company strengthened its internal systems in four ways: real-time monitoring was upgraded to flag unusual positions instantly; reconciliation systems were improved for simultaneous positions across multiple exchanges; cross-border documentation was tightened; and responsibilities between trading, settlement, and treasury teams were reviewed and updated.

M/s. C L A S S & Co. LLP, Chartered Accountants, (Firm Registration No.: 101717W/W101120), Statutory Auditors of the Company have audited both standalone and consolidated financial statements and issuedattestation

Technology on internal financial controls under Section 143 of the Companies Act, 2013. The Audit Committee concluded that the Companys internal financial controls were adequate and functioning effectively as of March 31, 2026.

9. People and Culture

As of March 31, 2026, the Group had 104 permanent employees, compared to 68 as of March 31, 2025.

Headcount growth reflects expansion in trading, risk management, technology, and compliance functions. Key people initiatives in FY 2025-26 included comprehensive regulatory compliance training (covering SEBI commodity/equity derivatives, FEMA, UAE AML), technology and trading skills development commensurate with the scale-up, and employee well-being programmes including Fun Friday sessions, inter-department cricket tournaments, and an immersive company offsite retreat. The Company complies fully with the Code on Social Security, 2020, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and all applicable HR-related statutory obligations.

10. Outlook

AEL enters FY 2026-27 with strategic strength and institutional maturity, shaped by a year that placed the Company at the genuine epicentre of the global commodity supercycle. The external environment for FY 2026-27 is characterised by three simultaneous dynamics: the ongoing Middle East conflict creating energy price pressure and geopolitical safe-haven demand for gold; Indias continued position as the worlds fastest-growing major economy; and the partial resolution of the US–India trade dispute through the February 2026 bilateral framework.

The macro environment for AELs core businesses remains constructive. Gold is expected by leading global research houses to sustain elevated levels as safe-haven demand from the Middle East conflict overlays the structural bull drivers of central bank accumulation and de-dollarisation. Silvers structural supply deficit and industrial demand from the energy transition and AI infrastructure provides a multi-year price foundation. Indias IIBX at GIFT City is deepening toward becoming a genuine institutional bullion price-setting hub. The

RBIs accommodative policy stance reduced the cost of carry on commodity trading positions.

Looking into FY 2026-27, AEL is committed in improving EBITDA margins through tighter spread management; deepening AELs GIFT City procurement advantage; investing in technology systems navigating the energy situation as the Middle East conflict evolves; and maintaining strict regulatory compliance across every geography AEL operates in.

11. Safe Harbour / Cautionary Statement

This report may contain forward-looking statements as defined under applicable laws and regulations. These statements are based on managements current beliefs, assumptions, and information available as of the date of this report, including the IMF World Economic Outlook April 2026 and other publicly available macroeconomic data. Actual business results and financial performance may differ materially from those expressed or implied due to risk factors including commodity price movements, Middle East conflict escalation, US trade policy changes, regulatory developments, energy price volatility, and other contingencies. The Company undertakes no obligation to revise forward-looking statements and assumes no liability for actions taken in reliance on information contained herein.

12. Closing Statement: At the Epicentre — Built for Every Cycle

As we close this Management Discussion and Analysis for FY 2025-26, we reflect on a year that validated

AELs model through the most severe tests it has yet encountered.

We thank our shareholders, clients, counterparties, regulators, exchanges, and employees for their trust. We enter FY 2026-27 with sharper systems, stronger governance, and conviction that the Company will build position at the epicentre of Indias commodity markets in a global supercycle.

Believe in AEL. Together, lets lead at the epicentre.