Amanaya Ventures Ltd Management Discussions

This chapter on Managements Discussion and Analysis (MD&A) is to provide stakeholders with a greater understanding of the Companys business, strategy and performance, as well as how it manages risk and capital.

The following discussion is intended to help the reader understand the results of operations and financial condition of Amanaya Ventures Limited for the year ended 31st March 2026.

I. ECONOMIC OVERVIEW, INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL ECONOMIC REVIEW

Global growth faced heightened headwinds in calendar year 2025. According to the IMFs April 2025 World Economic Outlook, global GDP growth was projected at 3.3% for 2024, with a further deceleration to 2.8% expected in 2025. Advanced economies showed tentative signs of recovery, but major emerging markets remained sluggish. Core inflation continued to hover above pre-pandemic levels across many regions even as headline inflation moderated. Geopolitical tensions—including the U.S.-Israel-Iran conflict that flared during the period—rising protectionism, and tightening monetary policy presented significant challenges to global capital flows and commodity markets.

In 2026, uncertainty intensified. The US-Israel-Iran conflict created fresh supply shocks, elevated energy prices, and widened the geopolitical risk premium embedded in safe-haven assets. This backdrop proved powerfully constructive for gold, with prices setting successive all-time highs and investment demand surging across all major geographies.

(Sources: IMF WEO April 2025; World Gold Council - Gold Demand Trends Q1 2026; various analyses and press releases)

INDIAN ECONOMY REVIEW

India continues to be one of the fastest-growing major economies globally. Real GDP growth for FY 2024-25 was estimated at 6.5% by MoSPI, driven by strong infrastructure-led public investment, resilient domestic consumption, and improving investor confidence. The IMF, in its July 2025 update, projected Indias GDP growth at 6.4% for both 2025 and 2026—reaffirming Indias position as the leading growth engine among large economies despite global uncertainties.

Indias socio-economic landscape continues to reflect a deep-rooted preference for gold as a household asset. With an estimated 25,000 tonnes of privately held gold, Indian households remain the single largest holders of the precious metal globally. Bullion and jewellery continue to dominate household savings and wealth, underscoring Indias identity as a gold-centric economy.

INDUSTRY REVIEW: GOLD DEMAND & MARKET STRUCTURE

A Landmark Quarter for Global Gold Investment

In Q1 2026, the World Gold Council reported total gold demand (including OTC) of 1,231t—a 2% increase year-on-year—but what was truly remarkable was the value dimension: golds exceptional price rise drove a 74% jump in the total value of quarterly demand to a record US$193 billion. The quarterly average LBMA gold price reached US$4,873/oz, with a historical high of US$5,405/oz recorded in January 2026.

Bar and coin demand globally surged to 474t in Q1 2026—a 42% year-on-year increase and the second highest quarter on record. Asian investors, led by China and India, drove the bulk of this demand. This is the structural tailwind that directly supports Amanaya Ventures core business model.

India: Physical Gold Investment Reaches Multi-Year High

Q1 2026 bar and coin investment in India rose 34% y/y to 62t—the highest first quarter since 2013. The strength of demand was such that bar and coin buying in India almost matched jewellery buying—a historically unprecedented shift in a market where jewellery consumption has typically been multiples of investment buying.

Indian jewellery demand declined 19% y/y in Q1 2026 to 66.1t, driven by record gold prices breaching the ?1,50,000/10g threshold. However, in value terms, the jewellery market reached a record US$10 billion in Q1 2026. Demand substitution—buyers redirecting purchases from jewellery to bars and coins for their lower premiums—reinforced the structural shift toward physical investment products.

Key behavioural observations from the Indian market in FY 2025-26:

• Trend toward smaller denominations and sub-10g products strengthened as affordability pressures grew.

• Exchange of old gold jewellery for new remained elevated, with outstanding retail bank loans backed by gold jewellery at INR 4.3 trillion as of February 2026—up 124% year-on-year.

• Digital gold ETFs in India also saw record inflows of 20t in Q1 2026, alongside continued growth in SIP-style gold accumulation plans.

• The shift toward investment-oriented gold products such as bars, coins, and systematic purchase plans gathered further momentum.

Evolving Market Structure

India remains the worlds second-largest bar and coin market, with domestic consumption historically averaging 185-190 tonnes annually. Bars dominate the investment segment (roughly 2x the coin market), while coins retain strong gifting demand around Dhanteras, Akshaya Tritiya, and wedding season.

Key structural trends continuing to shape the competitive landscape:

• Jewellers retain 80-85% of offline bar and coin retail—trust, relationships, and cultural linkage remain decisive.

• E-commerce accounts for 3-5% of bar and coin sales and continues to grow, particularly among urban, digital-first millennial buyers.

• The Indian digital gold market crossed ?25,000 crore (US$3 billion) by 2025 with double-digit annual growth, attracting first-time buyers.

• Domestic refineries are expanding into direct-to-consumer retail, supported by IIBX infrastructure.

• The convergence of physical and digital channels is reshaping buying behaviour; omni-channel distribution is now a strategic imperative rather than a differentiator.

Strategic Implications: The structural shift from jewellery fabrication to physical investment products—a global trend confirmed by WGC Q1 2026 data—strongly validates Amanaya Ventures bullion-first business model. As bars and coins capture an increasingly dominant share of gold spending, the Companys positioning is aligned with the direction of market evolution.

(Sources: World Gold Council - Gold Demand Trends Q1 2026; Metals Focus; Refinitiv GFMS; IMF WEO April 2025; Economic Times, Business Standard 2025-26)

COMPANY OVERVIEW

"We want to make physical Gold and Silver purchases affordable, convenient, and transparent with a personal touch."

Amanaya Ventures Limited is engaged in the business of trading precious metals, with a primary focus on 24 Carat Gold, Silver Bars, and Jewellery. The Company operates on a bullion-first model, emphasising spot buying and selling of physical gold and silver bars, backed by strong compliance and transparency standards.

The Company has built its proprietary brand Aurel Forever Yours! — a branded physical bullion range distinguished by its signature heart-engraved design on 24K gold and silver bars. This design element is not cosmetic; it is a statement of intent — transforming a commodity transaction into a personal, emotionally resonant act of ownership. Aurel Forever Yours! bars are available in multiple denominations and are crafted to be gifted, preserved, and passed on.

The brands differentiation is being validated by the market. During FY 2025-26, Aurel Forever Yours! branded gold and silver bars contributed approximately 20% of the Companys total transaction value, with customers across both retail and B2B channels specifically requesting Aurel-branded bars by name. This organic brand pull — buyers seeking out a branded, identifiable bullion product rather than generic gold — signals a meaningful and durable shift from commodity positioning toward premium branded physical bullion, which the management believes will be the Companys defining competitive advantage in the years ahead.

Aurel Forever Yours! products are accessible through:

• Aurel Bullion App (Play Store: com.chirayusoft.aurelbullion; App Store: id6449705894): A B2B physical bullion trading platform serving jewellers and serious individual buyers, offering live rates, transparent pricing, and compliance-driven trust.

• aureljewels.com: The direct-to-consumer e-commerce destination for physical bullion and jewellery, with live pricing, secure delivery, and an expanding jewellery collection.

• Aurel Gold Purchase Plan (GPP): A GST-compliant monthly savings plan starting from ?3,000/month enabling customers to accumulate certified 24K gold bars with doorstep delivery.

• Aurel Silver Purchase Plan (SPP): Starting from ?1,500/month for 999 pure silver bars with rate-fixing, GST-paid invoices, and doorstep delivery.

OPPORTUNITIES

India is the worlds second-largest gold bar and coin market, consuming 185-190 tonnes of physical investment gold annually. At current domestic gold prices of approximately Rs. 1,50,000 per 10 grams and silver at Rs. 2,50,000 per kilogram, this translates to an addressable domestic physical bullion market worth in excess of Rs. 2.7 lakh crore per year in gold alone - and the market is structurally expanding. In Q1 2026, Indian bar and coin investment demand surged 34% year-on-year to 62 tonnes - the highest first quarter since 2013 - even as record prices suppressed jewellery buying. The message from the market is unambiguous: when prices rise, Indian investors do not retreat from gold. They rotate into it - and specifically into physical investment products. Amanaya Ventures is positioned precisely at the centre of this rotation.

Yet within this vast market lies a structural white space that almost no organised player has successfully occupied: branded physical bullion. Indias bar and coin market is overwhelmingly commodity-driven. Buyers ask for 10 grams of gold - not for a brand. Pricing is the primary differentiator. Loyalty is near-zero. Repeat purchase is incidental. This is the market as it exists today - and it represents both the context and the opportunity for Aurel Forever Yours!.

Aurel Forever Yours! - with its distinctive heart-engraved 24K gold and silver bars - is building the category that currently does not exist at scale in India: gold and silver bars that customers ask for by name. During FY 2025-26, Aurel branded bars contributed approximately 20% of the Companys total transaction value, driven entirely by organic demand - customers, jewellers, and B2B partners specifically requesting heart- engraved Aurel bars over generic alternatives. In a commodity market, brand pull of this nature is rare and extraordinarily valuable. It is the earliest and most reliable signal that a brand is beginning to compound.

The opportunity deepens further when one examines the mechanics of the Aurel Gold and Silver Purchase Plans (GPP / SPP). Every GPP subscriber commits a minimum of Rs. 3,000 per month for 11 months. Every SPP subscriber commits Rs. 1,500 per month for 6 months. At the end of each plan, the subscriber takes doorstep delivery of certified 24K Aurel gold or silver bars - heart-engraved, GST-invoiced, physically theirs. This is not a one-time transaction. It is a structured, recurring relationship that converts a savings habit into a branded bullion ownership experience.

The flywheel this creates is significant: a GPP subscriber who receives their Aurel bar at plan-end becomes the Companys most natural brand ambassador. The bar they hold - engraved, branded, beautiful - is shown to family, gifted at weddings, kept as an heirloom. Each bar in circulation is a physical advertisement that money cannot buy. As the GPP/SPP subscriber base grows, so does the number of Aurel bars in Indian households - and with them, the organic demand that feeds the next cycle of plan enrolments and dealer network growth. This is the Aurel brand flywheel, and it is already turning.

The third dimension of the opportunity is distribution. India has an estimated 4 to 5 lakh jewellers operating across every city, town, and village - the most trusted point of purchase for gold in the country, accounting for 80-85% of all offline bar and coin retail. The AVL Bullion Dealer Programme is designed to bring these jewellers into a structured, compliance-first bullion supply network under the Aurel and AVL umbrella.

Penetrating even 0.1% of Indias jeweller base - approximately 400 to 500 registered dealers - would create a distribution infrastructure that most branded bullion entrants have spent decades trying to build. Each dealer in the AVL network becomes a recurring buyer of Aurel-branded inventory, a touchpoint for GPP/SPP enrolments, and a compliance-driven participant in the physical bullion ecosystem the Company is building.

The combination of a record-price environment driving investment demand, a branded product with organic pull, a plan-based subscriber flywheel, an emerging dealer distribution network access constitutes an opportunity that is multi-layered, mutually reinforcing, and time-sensitive. The physical bullion market in India is at an inflection point. The companies that build brand, compliance infrastructure, and distribution in this window will own the category for the next decade. Amanaya Ventures Limited, through Aurel Forever Yours! and the AVL platform, is building all three simultaneously.

THREATS TO PHYSICAL INVESTMENT DEMAND

While physical bullion remains the preferred format for most Indian households, alternatives such as digital gold and gold ETFs continue to gain traction, particularly among younger, tech-savvy investors. With Sovereign Gold Bonds effectively discontinued, the most direct competitive threat has diminished. However, the sustained elevation of gold prices above ?1,50,000/10g creates an affordability barrier for new entrants in the physical market, potentially accelerating the trend toward smaller denominations and digital formats.

II. OUTLOOK ON RISK AND CONCERNS

• Capital Intensity and Price-Level Risk: The Company operates with a modest capital base in a scale-driven, price-sensitive industry. With gold above ?1,50,000/10g and silver above ?2,50,000/kg, the value of inventory holdings, working capital requirements, and hedging margins have surged significantly. Achieving Qualified Jeweller (QJ) status on the IIBX, which requires approximately ?15 crore net worth, remains a medium-term aspiration that constrains access to exchange-based sourcing advantages.

• Geopolitical and Macroeconomic Headwinds: The US-Israel-Iran conflict and ongoing US- China trade tensions introduce volatility in global commodity markets. These dynamics can compress margins, disrupt cross-border bullion flows, and complicate medium-term planning.

• Revenue Concentration and Margin Compression: FY 2025-26 saw a substantial increase in total revenue driven by high-volume bullion and derivative trading. However, this growth was accompanied by margin compression, with PAT declining year-on-year. The Company is focused on improving the quality and consistency of margins through higher-value B2B programme revenue, branded plan enrolments, and export-linked business.

• Evolving Customer Behaviour: A growing cohort of younger investors prefers digital-first gold exposure via ETFs, digital gold apps, and online platforms. While this is a structural headwind for purely physical demand, the Company believes its personalised, compliance-first model— combined with a digital asset portfolio—positions it effectively across both segments.

• Macroeconomic Sensitivity: Consumer sentiment, inflation, currency movements, and broader economic stability directly affect offtake in both retail and B2B channels. A below-normal monsoon or any sustained inflationary shock from the Middle East conflict could curb buying capacity among retail customers.

Long-term fundamentals for physical bullion remain strongly supportive. The Company continues to explore prudent avenues to strengthen its financial base and accelerate scale, in full adherence with the applicable regulatory framework.

III. INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has a proper and adequate system of internal controls to ensure that all transactions are authorised, recorded, and reported correctly, and that assets are safeguarded against loss from unauthorised use or disposition. The internal financial controls were reviewed by the statutory auditors for the year ended 31st March 2026 and were found to be operating effectively in all material respects. The Company maintained an audit trail (edit log) in its accounting software throughout the year for all relevant transactions, in compliance with applicable requirements.

IV. FINANCIAL PERFORMANCE AND OPERATIONAL HIGHLIGHTS

FY 2025-26 was a landmark year for the Company in terms of revenue scale, recording Total Income of Rs. 8,47,808.42 thousands - a growth of over 114.5% over the previous years Total Income of Rs. 3,95,401.82 thousands. Revenue from Bullion and Jewellery operations grew to Rs. 8,38,512.83 thousands, complemented by the Companys maiden contributions from Derivatives and Securities operations of Rs. 9,014.15 thousands, reflecting the broadening of the Companys trading capabilities.

Net Profit After Tax (PAT) for FY 2025-26 stood at Rs. 2,122.74 thousands as compared to Rs. 2,918.02 thousands in FY 2024-25. The Board draws the Members attention to two specific, well-understood factors that account for this moderation in profitability, both of which are transient or strategic in nature:

(i) NRV Impact on Inventories: In compliance with Ind AS 2 - Inventories, the Companys gold bullion, silver bullion, jewellery, and securities are carried at the lower of cost or Net Realisable Value (NRV). FY 2025-26 was a year of unprecedented precious metal price volatility, with gold touching an all-time high of US$5,405/oz in January 2026 before experiencing a sharp correction.

This trajectory created conditions where certain inventory positions, acquired at elevated cost levels prior to the correction, were required to be marked down to their NRV at 31st March, 2026.

This mandatory non-cash accounting adjustment under Ind AS 2, while not representing any physical loss or diminution in the underlying commercial value of inventory, had a measurable impact on gross margins and consequently reported PAT for the year. The Statutory Auditors validated the appropriateness of this NRV-based valuation as a Key Audit Matter in their report for FY 2025-26.

(ii) Strategic Investments in Brand and Distribution: Other Expenses increased from Rs. 3,057.44 thousands to Rs. 5,119.42 thousands during the year. This reflects, inter alia, a significant step-up in dealer incentivisation programmes (Incentives: Rs. 1,627.56 thousands vs Rs. 334.56 thousands in the prior year), and enhanced bullion processing and fulfilment capabilities through job work arrangements (Job Work Charges: Rs. 1,171.74 thousands vs Rs. 177.40 thousands), alongside higher freight, travel, and communication expenditure in support of distribution expansion. Critically, the step-up in Job Work Charges directly funded the manufacturing and finishing processes behind the Companys flagship Aurel Forever Yours! branded bars - the heart-engraved 24K gold and silver bars that contributed approximately 20% of total transaction value in FY 2025-26 through organic customer demand. These expenditures are foundational investments in the AVL Dealer Programme and Aurel brand ecosystem, not discretionary costs, and are expected to generate meaningful operating leverage and margin improvement as the platform scales.

The Companys balance sheet remains robust. Zero debt is maintained across both years. Net worth grew to Rs. 55,247.97 thousands (from Rs. 53,121.38 thousands in FY 2024-25), reflecting retained earnings and prudent capital stewardship. Retained Earnings, which had been in deficit at the start of FY 2024-25, have now turned positive at Rs. 1,401.14 thousands - a significant milestone in the Companys financial maturation. The priority for FY 2026-27 is to translate the substantial revenue scale-up into improved PAT margins, through a higher mix of branded plan revenue (GPP/SPP), B2B programme fees, and export-linked transactions.

V. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Companys human resources philosophy is to establish and build a strong performance and competency- driven culture with a greater sense of accountability and responsibility. The Company acknowledges that its principal asset is its people. Industrial relations remained cordial throughout the year. The total number of permanent employees as on 31st March 2026 was six.

VI. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Pursuant to Regulation 34(3) of SEBI (LODR) Regulations, 2015 read with Schedule V Part B(1), details of changes in Key Financial Ratios are given hereunder:

Sr. No.	Ratio	Formula	FY 2025- 26	FY 2024- 25	% Variance	Reason for Variance
1	Current Ratio (Times)	Current Assets / Current Liabilities	51.10	41.11	+24.30%	Decrease in current liabilities (lower provisioning) combined with growth in current assets during the year.
2	Inventory Turnover Ratio (Times)	Net Sales / Inventory	21.19	10.58	+100.28%	Revenue more than doubled driven by substantially higher bullion trading volumes and derivative activity; inventory base remained relatively stable.
3	Trade Receivable Turnover (Times)	Net Sales / Trade Receivables	98.04	172.57	-43.17%	Trade receivables increased significantly (from ?22.90 L to ?86.44 L) reflecting higher credit extended to B2B counterparties as business scaled up.
4	Trade Payable Turnover (Times)	Net Credit Purchase / Avg. Payables	N.A.	N.A.	N.A.	The Company operates on advance/spot-payment terms; no trade payables outstanding during either year.
5	Net Capital Turnover Ratio (Times)	Net Sales / Shareholder Fund	15.34	7.44	+106.18%	Revenue more than doubled while the equity base expanded only modestly, resulting in a significant improvement in capital utilisation efficiency.
6	Debt Equity Ratio (Times)	Total Debt / Total Equity	Nil	Nil	N.A.	Company continues to be zero-debt across both years.
7	Debt Service Coverage Ratio (Times)	Operating Profit / Debt Service Cost	N.A.	N.A.	N.A.	Not applicable; the Company has zero debt obligations.
8	Net Profit Ratio (%)	PAT / Total Revenue * 100	0.25%	0.74%	-66.22%	Revenue growth was driven by high- volume, lower-margin bullion and derivative transactions. PAT declined y/y due to compressed margins on the expanded trading book and higher cost of traded goods.
9	Return on Capital Employed (%)	PBT / Capital Employed * 100	5.23%	7.58%	-31.00%	Lower PBT (?28.89 L vs ?40.29 L) against a higher capital base reflects margin compression from the evolving revenue mix.
10	Return on Equity (%)	PAT / Shareholder Fund * 100	3.84%	5.49%	-30.05%	Decline in PAT relative to expanded net worth. Focus for FY 2026-27 is on improving PAT margin through higher-value revenue streams.
11	Return on Investment (%)	PAT / Total Assets * 100	3.77%	5.36%	-29.66%	Lower PAT against a modestly higher asset base resulted in a compression of asset-level return.

VII. CAUTIONARY STATEMENT

This document contains forward-looking statements about expected future events, financial performance, and operational results of the Company. These forward-looking statements are based on assumptions and expectations as of the date hereof, and the Company does not guarantee the fulfilment of the same. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications, and risk factors referred to in the Managements Discussion and Analysis of Amanaya Ventures Limiteds Annual Report 2025-26. Actual results may differ materially from those expressed or implied.

By Order of the Board of Directors
Amanaya Ventures Limited
Sd/-	Sd/-
Rajni Mahajan	Manan Mahajan
Managing Director	Whole Time Director & CFO
DIN: 02463524	DIN:02217914
Place: Amritsar
Date: 24th July, 2026