Amrapali Industries Ltd Management Discussions

GLOBAL ECONOMIC REVIEW

FY 2025-26 was characterized by a global economy navigating a complex environment shaped by geopolitical tensions, evolving trade policies, moderating inflation, and changing monetary conditions. Economic growth across advanced economies remained moderate as central banks balanced the need to control inflation with the objective of supporting growth and employment. The global economy demonstrated resilience despite uncertainty arising from geopolitical conflicts, disruptions in international trade routes, and volatility in energy and commodity markets. Global growth remained below historical averages, reflecting cautious corporate investment and uneven recoveries across regions. At the same time, easing inflationary pressures and improving financial market conditions supported economic activity in several countries.

The financial markets witnessed periods of heightened volatility driven by changes in interest rate expectations, geopolitical developments, and currency fluctuations. Global investors remained focused on economic indicators relating to inflation, employment, fiscal deficits, and central bank policies. While developed markets experienced slower growth momentum, emerging economies continued to play a significant role in driving global economic expansion. The increasing adoption of digital technologies, artificial intelligence, automation, and sustainable investment practices continued to reshape global business and investment landscapes.

Despite persistent macroeconomic challenges, international capital markets remained active with continued investor interest in high-growth economies and sectors. Financial institutions globally continued to strengthen their risk management frameworks and technology infrastructure to address emerging operational, cyber security, and regulatory challenges. The broader global outlook remained cautiously optimistic, supported by gradual improvement in economic fundamentals, easing inflation, and relatively stable financial conditions.

OUTLOOK

The outlook for the global economy remains moderately positive, supported by improving consumer confidence, easing inflationary pressures, technological advancement, and gradual normalization of monetary policies across major economies. While global uncertainties relating to geopolitical developments, trade policies, and financial market volatility are expected to persist, economic activity is likely to remain resilient. Continued investments in digital transformation, infrastructure development, renewable energy, and innovation are expected to support long-term growth across global markets.

The outlook for Indias financial services and capital market ecosystem remains particularly encouraging. The growing formalization of the economy, rising disposable incomes, increasing digital penetration, and expanding investor participation are expected to drive sustained growth in the financial sector. The governments continued focus on economic reforms, infrastructure spending, manufacturing growth, and financial inclusion is likely to strengthen the investment environment and support capital market development.

For the equity broking industry, prospects remain robust owing to increasing participation by retail investors, expansion of investment products, widespread use of digital platforms, and growing awareness regarding financial planning and wealth creation. New technologies such as artificial intelligence, advanced analytics, robo- advisory services, algorithmic trading solutions, and personalized investment platforms are expected to enhance customer engagement and operational efficiency. The long-term structural drivers supporting the growth of the capital markets remain intact, creating significant opportunities for companies operating within the broking and financial services sector.

INDIAN ECONOMIC REVIEW

During FY 2025-26, India continued to reinforce its position as one of the worlds fastest-growing major economies. Strong domestic consumption, government-led infrastructure development, resilient banking and financial systems, and increasing private sector participation contributed significantly to economic growth. The country benefited from a balanced combination of macroeconomic stability, demographic advantages, and progressive policy initiatives that supported sustainable economic expansion. The International Monetary Fund continued to project India as one of the fastest-growing major economies globally, reflecting confidence in its long-term growth trajectory.

Government initiatives relating to infrastructure development, digital transformation, manufacturing expansion under various production-linked incentive schemes, and promotion of entrepreneurship continued to strengthen economic fundamentals. Public sector capital expenditure remained a key catalyst for growth, stimulating activity across industries and generating multiplier effects within the economy. Strong performance in sectors such as services, technology, financial services, telecommunications, and manufacturing helped maintain growth momentum throughout the year.

Indias banking sector remained well-capitalized and financially stable, supporting credit growth and facilitating investment across various sectors. Inflation remained relatively manageable compared to several major economies, allowing policymakers to maintain a balanced approach towards growth and price stability. Continued improvements in tax compliance, digital payments infrastructure, financial inclusion initiatives, and formalization of economic activities further strengthened the foundation for long-term development.

The growing integration of Indian capital markets with global financial systems, increasing foreign and domestic institutional investments, and rising retail participation have collectively enhanced the depth, liquidity, and resilience of the financial ecosystem. These developments continue to position India as an attractive investment destination and an important contributor to global economic growth.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian equity broking industry continued its structural transformation during FY 2025-26, supported by technology-led innovation, increasing retail participation, improved market accessibility, and a strengthening regulatory environment. The industry has evolved significantly from traditional branch-based operations to highly digitized business models that allow investors seamless access to capital markets through mobile applications and online platforms.

Investor participation in Indian capital markets expanded substantially during the year, driven by increasing awareness regarding financial literacy, higher household allocation towards financial assets, ease of account opening, and growing confidence in regulated investment avenues. The number of demat accounts witnessed significant growth, reflecting deeper penetration of capital market participation across the country. The participation of retail investors has emerged as a major structural driver for the industry, contributing meaningfully to trading volumes and liquidity across market segments.

The industry structure comprises full-service brokers, discount brokers, institutional brokers, wealth management firms, online investment platforms, and integrated financial service providers. Competition within the sector has intensified as market participants continue to invest heavily in technology, customer acquisition, research capabilities, data analytics, and value-added financial services. Clients increasingly demand integrated solutions offering investment advisory, portfolio management, financial planning, margin funding, and diversified investment products through a single platform.

Regulatory initiatives implemented by SEBI and stock exchanges have played a vital role in strengthening transparency, investor protection, corporate governance, and market integrity. Improved surveillance mechanisms, enhanced disclosure requirements, and technology-driven compliance systems have reinforced investor confidence and contributed toward the healthy development of capital markets. The industry continues

to benefit from rising financialization of savings and increasing acceptance of capital market investments as an important component of long-term wealth creation.

OPPORTUNITIES AND THREATS

The Company operates in an industry that offers substantial long-term growth opportunities. Increasing financial literacy, growing disposable incomes, favourable demographics, rising digital penetration, and growing awareness regarding equity investments continue to expand the addressable market for broking services. The rapid shift of household savings from traditional instruments towards market-linked investments presents significant opportunities for customer acquisition and business expansion.

The increasing adoption of digital investment platforms, artificial intelligence-based advisory solutions, algorithmic trading tools, and customized wealth management offerings provides opportunities for delivering enhanced customer experiences and improving operational scalability. The penetration of financial services into semi-urban and rural markets continues to remain relatively low compared to developed economies, creating considerable potential for future growth. Furthermore, increasing participation by younger investors and firsttime market participants is expected to generate sustained demand for investment-related products and services.

At the same time, the industry faces a number of challenges and threats. Intense competition among brokers and financial service providers has resulted in significant pressure on brokerage yields and customer acquisition costs. The dynamic regulatory environment requires continuous investments in compliance systems and operational controls. The industry also remains vulnerable to market volatility, global economic uncertainties, geopolitical risks, cyber security threats, technology disruptions, and changes in investor sentiment.

Additionally, prolonged market corrections, reduced trading activity, increasing operational costs, and rapid technological changes may adversely affect profitability. The ability to adapt quickly to changing customer expectations, evolving regulations, and technological advancements will remain critical for maintaining competitiveness and sustainable growth.

RISK AND CONCERN

The Companys business performance is closely linked to the overall health and activity levels of the capital markets and is therefore exposed to various internal and external risks. Market risk continues to be one of the most significant factors affecting the industry, as fluctuations in equity prices, trading volumes, interest rates, and investor sentiment can directly influence revenues and profitability.

Regulatory risk remains an important area of focus given the evolving nature of securities market regulations. Amendments in regulatory policies, compliance requirements, margin frameworks, investor protection measures, and operational guidelines may impact business operations and necessitate process modifications and technology investments.

Technology and cyber security risks continue to grow in significance as the industry becomes increasingly dependent on digital platforms and electronic transactions. System failures, cyber attacks, data breaches, unauthorized access, and disruptions to critical technology infrastructure may adversely affect operations, reputation, and customer confidence. In response, the Company continuously reviews and strengthens its information security frameworks, business continuity arrangements, and disaster recovery mechanisms.

Operational risks relating to process failures, human errors, fraud, vendor dependencies, and service interruptions are monitored through structured internal control mechanisms. Liquidity and credit risks are managed through prudent financial practices, continuous monitoring, and adherence to established risk management policies.

The Company remains committed to maintaining a comprehensive enterprise risk management framework that enables timely identification, assessment, mitigation, and monitoring of risks to protect stakeholder interests and ensure business continuity.

INTERNAL FINANCIAL CONTROL SYSTEMS

The Company has established a robust internal financial control framework designed to ensure operational efficiency, reliability of financial reporting, safeguarding of assets, compliance with applicable laws and regulations, and effective risk management. The internal control environment is supported by clearly defined organizational structures, delegation of authority, documented policies and procedures, and well-established operating practices.

The Company follows systematic processes for transaction authorization, financial reporting, accounting controls, compliance monitoring, and risk assessment. Appropriate checks and balances have been incorporated across key business processes to minimize operational and financial risks. Management regularly reviews the effectiveness of internal controls and undertakes corrective measures wherever required.

The Internal Audit function independently evaluates the adequacy and effectiveness of internal controls, governance processes, compliance mechanisms, and risk management systems. Internal audit observations and recommendations are periodically reviewed by the management and the Audit Committee of the Board, which monitors implementation of corrective actions. The Audit Committee plays a proactive role in overseeing financial reporting processes, statutory compliance, risk management practices, and internal control effectiveness.

The Company also continues to strengthen its technology-enabled monitoring systems, automated controls, regulatory reporting capabilities, and information security frameworks to ensure alignment with evolving business and regulatory requirements. Based on periodic assessments and reviews, the management believes that the Companys internal financial control systems are adequate and operating effectively.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company for the year ended 31st March, 2026 is summarized below:

(AMOUNT IN LAKH)

Particulars	F.Y. 2025-26	F.Y. 2024-25
Revenue from operations	48,41,790.53	25,67,774.94
Other Income	861.30	522.34
Total Income	48,42,651.83	25,68,297.28
Operating expenditure before Finance cost, depreciation and amortization	48,39,454.79	25,67,524.42
Earnings before Finance cost, depreciation and amortization (EBITDA)	3,197.04	772.86
Less: Finance costs	1,331.47	371.97
Less: Depreciation and amortization expense	203.74	188.75
Profit/(Loss) before tax	1,661.83	212.15
Less: Tax expense:
Current tax	421.62	61.48
MAT Credit	73.03	-
Deferred Tax	(91.54)	(14.10)
Profit/(Loss) for the year (PAT)	1,258.73	164.77

HUMAN RESOURCE POLICY

The Companys people remain its most valuable asset and a key driver of long-term success. The human resource philosophy focuses on creating an environment that promotes professional excellence, ethical conduct, continuous learning, collaboration, innovation, and employee well-being. The Company believes that sustainable business growth can be achieved only through the development and engagement of a highly motivated and competent workforce.

The Company is committed to providing equal opportunities and fostering a workplace culture based on fairness, integrity, meritocracy, diversity, and mutual respect. Human resource policies are designed to attract, develop, retain, and reward talent while ensuring alignment between individual performance and organizational objectives.

Continuous learning and capability building remain important priorities. Employees are encouraged to participate in training programs, professional certifications, regulatory awareness initiatives, leadership development activities, and technology-focused learning interventions. Given the dynamic nature of the financial services industry, particular emphasis is placed on enhancing knowledge relating to compliance, risk management, cyber security, customer service, and emerging market developments.

The Company promotes employee engagement through transparent communication, performance-driven incentives, recognition programs, and opportunities for career growth. Employee welfare, workplace safety, mental well-being, and work-life balance remain integral components of the Companys human resource framework.

The Company values a culture of accountability, teamwork, customer focus, and continuous improvement. Through its people-centric approach, the Company seeks to build a resilient, skilled, and future-ready workforce capable of delivering sustainable value to all stakeholders while supporting the Companys strategic objectives and long-term growth aspirations.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE

Ratio		Numerator		Denominator		March 31, 2026		March 31, 2025		% of Change		Reason of Changes More than 25 %
Current ratio		Current Assets		Current Liabilities		0.77		1.12		- 3 1.2 5 %		Due to In cre ase in Working Capital
Debt- Equity Ratio		Total Debt		Shareholders Equity		3.82		1.16		2 2 9.3 1 %>		due to In cre ase in Borrowing in current year.
Debt Service Coverage ratio*		Earnings Before Interest, Taxes, Depreciation, and Amortisation		Interest & Lease Payments + Principal Repayments		2.4		2.08		1 5.3 8 %>		Due to company has mad e handsome profit this year.
Return on Equity ratio*		Net Profits after taxes - Preference Dividend		Average Shareholders Equity		0.32		0.05		540.00%		Due to company has mad e handsome profit this year.
Inventory turnover ratio		Net Sales		Average Inventories		1080.97		1096.67		- 1 .43 %		-
Trade Receivable Turnover Ratio*	Revenue from operations		Average Trade Receivable		57036.89		515183.37		-88.93%		Due to Increase in revenue from operation this year compared to previous years.
Trade Payable Turnover Ratio*	Cost of Services/Goods		Average Trade Payables		25982.11		16071.26		6 1 .6 7 %		Due to Increase in Purchases of S t ock-in- Trade this year compared to previous years
Net Capital Turnover Ratio*	Revenue from operations		Working capital		-924.26		2497.47		137.01%		Due to Increase in revenue from operation as well as working capital this year compared to previous years.
Net Profit ratio	Net Profit		Revenue from operations		0.00026		0.00006		3 0 5.14%		Due to Due to company ha s made handsome profit this year.
Return on Capital Employed*	Earnings before interest and taxes		Tangible Net Worth + Total Debt + Deferred Tax Liability		0.63		0.16		2 9 3.7 5 %		Due to company has mad e handsome profit this year
Return on investment	Net Returns		Cost of Investment		NA		NA		NA

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (Ind AS) and other accounting principles generally accepted in India.

CAUTIONARY STATEMENT

This report contains statements that may be forward looking including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from

our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Company undertakes no obligation to publicly revise any forward looking statements to reflect future/likely events or circumstances.