Almondz Global Securities Ltd Management Discussions

Global Economic Environment

FY 2025-26 was characterized by heightened global economic uncertainty driven by geopolitical conflicts, changing trade dynamics, persistent inflationary pressures, and evolving monetary policies. Although the global economy remained resilient, growth moderated to around 3.0%, according to the International Monetary Fund (IMF), reflecting slower-than-historical expansion. Technological advancements in artificial intelligence (AI), digital infrastructure, and advanced manufacturing supported productivity, but geopolitical tensions, supply chain disruptions, and energy market volatility continued to pose significant risks.

The United States maintained strong economic growth, supported by AI- and technology-led capital expenditure despite weaker employment generation. Europe witnessed moderate recovery, primarily driven by the services sector, although growth prospects remained uncertain due to geopolitical tensions and higher energy costs. China experienced subdued domestic demand and weakness in the real estate sector but maintained robust export performance by diversifying exports beyond the U.S. market.

The global economy was significantly affected by several geopolitical developments during the year. The prolonged Russia-Ukraine conflict continued to disrupt commodity markets, while escalating tensions in the Middle East, particularly around the Strait of Hormuz, raised concerns over global energy security and supply chain resilience. These developments resulted in sharp fluctuations in crude oil prices, increased inflationary pressures, and heightened the risk of stagflation, especially for energy-importing economies in Asia.

Global trade also underwent significant restructuring due to increasing protectionist measures and reciprocal tariffs. The U.S. imposed broad reciprocal tariffs under the "Liberation Day" initiative, triggering trade volatility before the policy was later ruled illegal by the U.S. Supreme Court. Businesses increasingly adopted the "China Plus One" strategy, creating opportunities for countries like India to strengthen their position in global manufacturing and supply chains.

During FY2025-26, several significant geopolitical and economic developments shaped the global operating environment. In April 2025, the United States introduced broad reciprocal tariffs under the "Liberation Day" initiative, triggering considerable volatility in global trade before the policy was subsequently challenged through legal proceedings. In May 2025, military tensions between India and Pakistan escalated into a brief conflict, resulting in temporary disruptions to regional trade and airspace before a ceasefire was reached. At the June 2025 Hague Summit, NATO member countries agreed to increase defence spending to 5% of GDP in response to evolving global security concerns. Meanwhile, the Bank of Japan marked a significant shift in monetary policy by raising interest rates after years of maintaining an ultra-loose policy stance. In the United States, the Federal Reserve reduced policy rates by a cumulative 75 basis points during the latter half of 2025 to support economic growth amid moderating inflation. Further, the escalation of the Israel-U.S.-Iran conflict heightened geopolitical uncertainty, disrupted shipping through the Strait of Hormuz and contributed to a sharp increase in global crude oil prices, thereby intensifying inflationary and supply chain risks.

Inflation, Monetary Policy and Financial Markets

Global inflation moderated from post-pandemic peaks but remained above central bank targets in several economies. Consequently, major central banks, including the U.S. Federal Reserve and the European Central Bank, adopted calibrated monetary easing by reducing policy rates to support growth, while the Bank of Japan increased interest rates to stabilize its currency. However, rising energy prices due to geopolitical conflicts may compel central banks to reassess their monetary stance.

Higher interest rates and tighter financial conditions influenced global capital flows, borrowing costs, and corporate investment decisions. Financial markets experienced intermittent volatility driven by geopolitical events, commodity price movements, inflation expectations, and evolving interest rate outlooks. Nevertheless, institutional investments remained relatively resilient, supported by healthy corporate earnings, stronger banking systems, and continued investments in technology and AI.

Indian Economic Environment

Despite global uncertainties, India continued to strengthen its position as one of the worlds fastest-growing major economies. Supported by robust domestic demand, sustained government capital expenditure, resilient private consumption, structural reforms, and rapid digitalisation, Indias macroeconomic fundamentals remained strong. The IMF projected Indias GDP growth at approximately 6.4%, while the Governments revised GDP series (with 2022-23 as the new base year) estimated GDP growth at 7.7% during the first nine months of FY2025-26 compared with 7.1% in the corresponding period of the previous year.

Infrastructure-led Growth

Infrastructure continued to remain one of the principal engines of Indias economic expansion. Significant investments across highways, railways, airports, ports, metro systems, renewable energy, defence manufacturing and urban infrastructure generated substantial opportunities for financial institutions, investment banks and infrastructure advisory firms.

Large-scale public investment has also encouraged private capital participation through public-private partnerships, infrastructure investment trusts (InvITs) and asset monetisation initiatives, thereby expanding the addressable market for financial advisory and transaction services.

Financial Markets

Indias capital markets remained among the strongest globally despite episodes of external volatility. Domestic institutional investors and retail investors continued to provide stability to the equity markets through sustained investments.

The continued increase in demat accounts, systematic investment plan (SIP) inflows and participation by first-time investors reflects the ongoing financialization of household savings. Increasing depth and liquidity within Indias financial markets continue to create significant opportunities for investment banking, wealth management and capital market intermediaries.

Indias Energy Transition

India continued to accelerate its transition towards cleaner and more sustainable energy sources.

The Governments Ethanol Blended Petrol (EBP) Programme, National Policy on Biofuels, renewable energy initiatives and green hydrogen mission reflect the countrys commitment to reducing dependence on imported crude oil while strengthening long-term energy security.

The continued expansion of grain-based ethanol capacity, long-term procurement by Oil Marketing Companies (OMCs) and supportive policy initiatives are creating substantial opportunities for companies operating in the bioenergy value chain.

For the Almondz Group, this evolving policy landscape provides strategic growth opportunities through Premier Green Innovations Private Limited (PGIPL), whose investments in ethanol manufacturing align with Indias energy transition objectives and complement the Groups diversified business portfolio.

Industry Structure and Developments

Financial Services

Indias financial services sector continues to be one of the fastest-growing segments of the economy, driven by increasing financialization of household savings, expanding digital infrastructure, supportive regulatory reforms and growing participation of retail investors. Rising disposable incomes, wider adoption of digital investment platforms and greater financial awareness have accelerated demand for investment products and advisory services.

During FY2025-26, domestic institutional investors continued to provide stability to Indian capital markets despite volatility in foreign portfolio investment flows. Record participation through systematic investment plans (SIPs), increasing demat account penetration and greater adoption of technology-driven investment platforms have strengthened market depth and liquidity. Regulatory initiatives by SEBI aimed at enhancing investor protection, improving disclosure standards and strengthening market integrity are expected to further deepen Indias capital markets.

These structural trends provide long-term growth opportunities for Almondzs investment banking, institutional equities, wealth management, broking and depository participant businesses.

Investment Banking

Indias investment banking industry remained resilient despite an uncertain global environment. Strong corporate balance sheets, increasing infrastructure investments, strategic mergers and acquisitions, private equity activity and continuing capital market fundraising supported demand for advisory services.

Government-led infrastructure investments, renewable energy projects, manufacturing expansion under the Production Linked Incentive (PLI) Scheme and increasing corporate capital expenditure have created opportunities across equity capital markets, debt syndication, structured finance and transaction advisory.

The Companys established relationships, execution capabilities and sector expertise position it to benefit from increasing demand for integrated financial advisory solutions.

Wealth Management

The wealth management industry continues to expand, supported by increasing household wealth, growth in high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), and rising preference for professionally managed investment solutions.

Clients increasingly seek comprehensive financial planning, portfolio diversification, alternative investment opportunities, tax-efficient investment structures and estate planning. Technology-enabled advisory, digital engagement and customised investment strategies have become key differentiators within the industry.

Almondz continues to strengthen its advisory-led wealth management platform by combining relationship-based service with research- driven investment solutions.

Equity Broking and Institutional Equities

Indian equity markets continued to witness healthy trading activity supported by sustained retail participation, improving corporate earnings and expanding investor awareness.

Institutional investors increasingly demand high-quality research, efficient execution and sector-specific investment insights. At the same time, retail investors expect seamless digital trading platforms, faster execution and enhanced customer experience.

The Company continues to strengthen its institutional research, execution capabilities and technology platforms to improve client service and operational efficiency.

Depository Participant Services

Indias depository ecosystem continues to expand in line with increasing financial inclusion and digitalisation of financial services. The steady rise in demat accounts reflects growing investor participation across equity, debt and mutual fund investments.

The Companys depository participant business benefits from increasing market penetration, improved digital onboarding and greater investor awareness while maintaining a strong focus on compliance, operational efficiency and customer service.

Infrastructure Advisory

Infrastructure remains one of Indias most significant long-term growth drivers. Government programmes including PM Gati Shakti, the National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP) and continued public capital expenditure are generating substantial opportunities across transport, logistics, renewable energy, water resources and urban infrastructure.

Increasing participation by sovereign wealth funds, pension funds, multilateral institutions and private investors has created demand for specialised advisory services covering project structuring, financial modelling, transaction advisory, engineering consultancy and public- private partnership (PPP) projects.

With its multidisciplinary expertise, Almondz is well positioned to participate in Indias expanding infrastructure ecosystem.

Bioenergy and Ethanol Manufacturing

Indias bioenergy sector has emerged as a strategic priority under the Governments energy transition agenda. The Ethanol Blended Petrol (EBP) Programme, National Policy on Biofuels and initiatives aimed at reducing dependence on imported crude oil have accelerated investments in grain-based ethanol production.

The continued expansion of ethanol blending, long-term procurement by Oil Marketing Companies (OMCs) and supportive pricing mechanisms are encouraging capacity additions across the industry. Besides fuel ethanol, increasing demand for Extra Neutral Alcohol (ENA), Distillers Dried Grains with Soluble (DDGS) and other value-added co-products is improving the overall economics of ethanol manufacturing.

Through Premier Green Innovations Private Limited (PGIPL), the Almondz Group has established a strategic presence in the bioenergy sector. The commissioning of additional ethanol capacity and development of new grain-based ethanol facilities demonstrate the Groups commitment to supporting Indias clean energy transition. The adoption of environmentally sustainable technologies, including Zero Liquid Discharge (ZLD) systems, reflects its focus on responsible manufacturing and operational efficiency.

While the industry offers significant long-term growth potential, it also requires effective management of feedstock availability, commodity price volatility, environmental compliance and evolving regulatory policies.

Business Overview

Almondz Global Securities Limited ("Almondz" or "the Company") has evolved into a diversified business enterprise with interests spanning Financial Services, Infrastructure & Engineering Advisory and Bioenergy. Over the years, the Company has successfully leveraged its domain expertise, long-standing client relationships and execution capabilities to establish a strong presence across these strategic business verticals.

The Companys diversified business model provides resilience against cyclical fluctuations in individual sectors while enabling it to participate in multiple structural growth opportunities emerging from Indias expanding economy. Its integrated approach combines financial advisory, engineering consultancy and clean energy investments, allowing the Company to create sustainable long-term value for shareholders.

The Financial Services business remains the cornerstone of the Companys operations, providing investment banking, institutional equities, wealth management, equity broking and depository participant services to a diversified client base comprising corporates, financial institutions, institutional investors and high-net-worth individuals.

The Infrastructure & Engineering Advisory business leverages the Companys multidisciplinary expertise to provide project advisory, engineering consultancy, financial modelling, transaction advisory and project management services across transportation, urban infrastructure, renewable energy, water resources, industrial development and public-private partnership (PPP) projects.

Recognising the increasing importance of renewable energy and Indias commitment towards energy security, the Group has strategically diversified into the Bioenergy business through Premier Green Innovations Private Limited (PGIPL). The bioenergy business focuses on grain-based ethanol manufacturing, Extra Neutral Alcohol (ENA), Distillers Dried Grains with Soluble (DDGS) and other value-added coproducts, supported by environmentally sustainable manufacturing practices including Zero Liquid Discharge (ZLD) technology. This strategic diversification aligns the Group with Indias long-term clean energy transition while creating an additional avenue for sustainable growth.

The Companys business philosophy continues to be guided by operational excellence, strong corporate governance, prudent risk management, technology adoption and customer-centricity. Continuous investments in digital transformation, process automation, cybersecurity and talent development further strengthen its ability to respond effectively to evolving market conditions.

Financial Performance

Despite continued geopolitical uncertainties and market volatility, the Company demonstrated resilience through its diversified business portfolio and disciplined operating model.

The Financial Services business continued to benefit from improving capital market activity, increasing investor participation and higher demand for advisory services.

Infrastructure Advisory maintained a healthy order pipeline supported by sustained public infrastructure investments and growing private sector participation.

The Bioenergy business continued to progress through capacity expansion initiatives, strengthening the Groups diversification strategy while positioning it to benefit from Indias expanding ethanol blending programme.

The Company remained focused on prudent capital allocation, liquidity management, cost optimisation and strengthening technology infrastructure to support long-term sustainable growth.

Continuous investments in digital transformation, cybersecurity, operational efficiency and human capital are expected to enhance business resilience and improve competitiveness across all operating segments.

Performance review and the state of Companys affairs:

Your Company has prepared the Financial Statements for the financial year ended March 31,2026 in terms of Sections 129, 133 and Schedule III to the Companies Act, 2013 (as amended) (the "Act") read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. The gross revenue of your Company on a standalone basis is Rs. 6381.03 lakhs as compared to Rs. 3659.14 lakhs for the previous financial year 2024-2025. Profit before tax (PBT) is Rs. 209.29 Lakhs as compared Rs. 297.49 Lakhs in the previous financial year 2024-2025. The Companys consolidated total income for the year 2025-26 is Rs. 19,162.82 Lakhs as compared to Rs. 15,284.71 Lakhs in the previous year FY 2024-25. Profit before tax (PBT) is Rs. 3,305.79 Lakhs as compared to Rs. 2,027.47 Lakhs in the previous financial year 2024-2025.

Your Company currently offers depository participant services, wealth management advisory and equity broking services, Portfolio Management Services, Research Analyst on its own or through subsidiaries. The Company also provides consultancy related to Infrastructure advisory through its subsidiary. The company is a member of National Stock Exchange of India Limited (NSE) BSE Limited, (BSE); and Central Depository Services (India) Ltd., (CDSL) (for depository services).

Opportunities

The Companys diversified presence across Financial Services, Infrastructure & Engineering Advisory and Bioenergy positions it favourably to capitalise on Indias long-term economic transformation. The convergence of policy reforms, infrastructure-led growth, financial market deepening and energy transition is expected to create significant opportunities across all business verticals.

Financial Services

Indias financial services industry continues to benefit from the structural shift in household savings from physical assets to financial assets. Increasing retail participation in equity markets, robust inflows into mutual funds through Systematic Investment Plans (SIPs), expansion of alternative investment funds (AIFs) and growing demand for sophisticated financial products are expected to support longterm growth.

Government initiatives aimed at improving ease of doing business, strengthening capital markets and enhancing financial inclusion are likely to increase corporate fund-raising, strategic transactions and investment activity. The continued expansion of domestic institutional investors is expected to provide stability to capital markets and create opportunities for investment banking, institutional equities and wealth management businesses.

Increasing adoption of Artificial Intelligence (AI), data analytics, cloud computing and digital platforms is transforming the financial services industry. Institutions capable of combining technology with advisory capabilities are expected to improve customer experience, operational efficiency and productivity while creating new business opportunities.

Infrastructure & Engineering Advisory

Infrastructure development remains a cornerstone of Indias long-term economic strategy. Continued public investment in roads, railways, airports, ports, metro systems, logistics parks, renewable energy, transmission networks and urban infrastructure is expected to sustain demand for engineering consultancy, project management, transaction advisory and financial advisory services.

The Governments continued focus on PM Gati Shakti, National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP), Smart Cities Mission and renewable energy projects is likely to generate substantial opportunities for infrastructure advisory companies with multidisciplinary capabilities.

Growing participation of sovereign wealth funds, pension funds, infrastructure investment trusts (InvITs) and private equity investors is expected to further expand opportunities across project structuring, financial modelling, due diligence and transaction advisory.

Bioenergy

Indias energy transition presents a significant long-term opportunity for the Groups bioenergy business.

The Governments emphasis on reducing dependence on imported crude oil, increasing domestic ethanol production and promoting cleaner transportation fuels through the Ethanol Blended Petrol (EBP) Programme continues to support investment in grain-based ethanol manufacturing.

Capacity expansion by Oil Marketing Companies (OMCs), increasing blending requirements, favourable procurement mechanisms and policy support are expected to strengthen long-term demand for ethanol. In addition, increasing demand for Extra Neutral Alcohol (ENA), Distillers Dried Grains with Soluble (DDGS), carbon dioxide recovery and other value-added co-products is expected to improve plant economics and operational sustainability.

The Group believes that its investments through Premier Green Innovations Private Limited (PGIPL) position it to participate meaningfully in Indias rapidly expanding bioenergy ecosystem.

Strategic Opportunities

The Company expects to benefit from several long-term structural growth opportunities arising from Indias evolving economic landscape. The increasing financialization of household savings, supported by sustained retail participation in capital markets and growing investments in financial products, is expected to drive demand across the Companys financial services businesses. Continued infrastructure-led economic growth, backed by significant public and private sector investments, is likely to create opportunities for the Companys infrastructure advisory and project consultancy operations.

The ongoing expansion of renewable energy and energy transition initiatives, including biofuels and other clean energy projects, is expected to support growth in the Companys bioenergy business. At the same time, increasing activity in capital markets, corporate fund-raising and investment banking is anticipated to enhance opportunities across advisory, wealth management and institutional equity businesses. Rapid digital adoption across the financial services sector is further transforming customer engagement, operational efficiency and service delivery, enabling the Company to strengthen its technology-driven offerings.

The Company also expects to benefit from the rising demand for integrated advisory and consultancy services, growing focus on environmental, social and governance (ESG) and sustainable finance initiatives, strengthening domestic manufacturing capabilities, supply chain diversification under the "China Plus One" strategy, and increasing foreign direct investment and private capital participation across key sectors of the economy.

The Company remains committed to capitalising on these opportunities through disciplined capital allocation, customer-centric innovation, operational excellence, technology adoption, strong corporate governance and prudent risk management, with a continued focus on creating sustainable long-term value for its stakeholders.

Risks and Concerns

The Company operates in a dynamic business environment where performance is influenced by macroeconomic conditions, regulatory developments, market sentiment and technological advancements. Effective identification, assessment and mitigation of risks remain integral to the Companys long-term strategy.

Macroeconomic Risk

Global economic uncertainty continues to be influenced by geopolitical conflicts, changing trade policies, volatile commodity prices, inflationary pressures and fluctuations in interest rates.

The ongoing Russia-Ukraine conflict and geopolitical tensions in the Middle East continue to create uncertainty regarding global energy supplies, shipping routes and commodity prices. Sustained volatility in crude oil prices could impact inflation, monetary policy, investment activity and corporate profitability, thereby affecting the Companys operating environment.

Financial Services Risk

The Companys financial services businesses remain exposed to fluctuations in capital market activity, investor sentiment, interest rates and liquidity conditions.

Reduced fundraising activity, lower trading volumes, changes in regulatory policies, increased market volatility or weakening investor confidence could adversely impact investment banking, institutional equities, wealth management and broking businesses.

The Company continuously monitors market developments and maintains a diversified revenue profile to mitigate concentration risks.

Infrastructure Risk

Infrastructure projects are inherently exposed to execution risks arising from project delays, cost escalations, land acquisition challenges, regulatory approvals, environmental clearances and changes in government policies.

The Company mitigates these risks through rigorous project evaluation, robust contract management, technical expertise and continuous engagement with project stakeholders.

Bioenergy Risk

The bioenergy business is influenced by multiple operational and regulatory factors.

Availability and pricing of feedstock such as maize and other grains, changes in government procurement policies, ethanol pricing mechanisms, environmental regulations, logistics costs and plant utilisation levels may influence business performance.

The Company continues to focus on operational efficiency, technology adoption, diversified sourcing strategies and regulatory compliance to mitigate these risks.

Cyber Security and Technology Risk

Rapid digitalisation has increased exposure to cyber threats, ransomware attacks, data breaches and technology disruptions.

The Company continues to invest in cybersecurity infrastructure, data protection systems, disaster recovery mechanisms, business continuity planning and employee awareness programmes to strengthen operational resilience.

Human Capital Risk

Competition for experienced professionals across financial services, engineering consultancy and manufacturing continues to intensify.

The Company remains committed to attracting, developing and retaining talent through competitive compensation, capability development, leadership programmes and employee engagement initiatives.

Internal Control Systems and Their Adequacy

The Company has established an adequate internal control framework commensurate with the size, complexity and nature of its operations. The framework is designed to ensure operational efficiency, reliability of financial reporting, safeguarding of assets, regulatory compliance and effective risk management.

Clearly defined policies, standard operating procedures, delegation of authority, maker-checker controls and technology-enabled monitoring systems form the foundation of the Companys governance framework.

The Internal Audit function conducts periodic risk-based audits covering all significant business processes and operating locations. Audit observations and recommendations are reviewed by the Audit Committee of the Board, which continuously monitors the adequacy and effectiveness of internal controls and implementation of corrective actions.

The Company continues to strengthen its cybersecurity architecture, digital governance framework and enterprise risk management systems to enhance operational resilience across all businesses.

Management believes that the existing internal control systems provide reasonable assurance regarding the orderly and efficient conduct of business operations.

Human Resources

People remain the Companys most valuable asset and the foundation of its long-term success.

The Company continues to foster a performance-driven, collaborative and ethical work culture that encourages innovation, diversity, continuous learning and customer-centricity.

Regular investments are made in technical training, leadership development, digital capability enhancement and succession planning to build future-ready talent across financial services, infrastructure consultancy and bioenergy operations.

The Company promotes equal opportunity, workplace diversity, employee well-being and adherence to the highest standards of integrity and professional conduct.

Industrial relations remained cordial during the year, reflecting the Companys commitment to maintaining a positive and inclusive work environment.

Outlook

The outlook for the Company remains positive, supported by Indias favourable macroeconomic fundamentals, expanding capital markets, sustained infrastructure investments and accelerating clean energy transition.

The Financial Services business is expected to benefit from increasing financialization of savings, deeper capital markets, rising corporate fund-raising requirements and expanding wealth management opportunities.

Infrastructure Advisory is expected to benefit from continued government focus on transport, logistics, renewable energy, urban development and public-private partnership projects.

The Bioenergy business is well positioned to capitalise on increasing ethanol demand, supportive government policies, growing emphasis on energy security and the expansion of Indias renewable fuel ecosystem.

While geopolitical tensions, volatile crude oil prices, inflationary pressures, evolving regulatory frameworks and global financial market uncertainties may continue to create short-term challenges, the Companys diversified business portfolio provides resilience and multiple avenues for sustainable growth.

The management remains confident that its strategic focus on business diversification, technology adoption, operational excellence, prudent capital allocation and strong corporate governance will enable the Company to deliver sustainable long-term value to shareholders and other stakeholders.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on assumptions regarding future events and are therefore subject to risks and uncertainties, including changes in economic conditions, geopolitical developments, government policies, regulatory requirements, interest rates, commodity prices, competitive intensity and other factors beyond the Companys control.

Actual results may differ materially from those expressed or implied in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.