Anand Rathi Wealth Ltd Management Discussions

1. Global Economic Environment and Outlook

1.1. Resilient Growth Amid Renewed Fragmentation

During the last one year, the global growth environment has moderated but remained resilient, with world output holding close to post-pandemic (2022-24) pace and only limited loss of momentum. Advanced economies have remained in a low growth trajectory, while emerging markets, especially in Asia, continue to expand faster, broadly maintaining the earlier growth gap with advanced peers.

Advanced economies remain on a structurally lower growth trajectory. The United States has been the primary engine of demand, supported by resilient consumption and sustained investment, particularly in technology-related sectors. In contrast, the euro area and Japan continue to exhibit subdued growth, constrained by weak manufacturing activity and cautious domestic demand. Chinas growth, while still robust in absolute terms, is moderating as structural headwinds-most notably in the property sector and demographics-persist.

GDP Growth (% YoY)

Period	World	Advanced	Emerging Market	China	EU	Japan	US
2015-19	3.4	2.3	4.3	6.8	1.8	0.8	2.6
2022-24	3.5	1.8	4.3	5.0	2.8	1.0	2.8
2025	3.3	1.7	4.4	5.0	2.1	1.1	2.1
2026 (E)	3.3	1.8	4.2	4.5	2.4	0.7	2.4
2027 (e)	3.2	1.7	4.1	4.0	2.0	0.6	2.0

Source: IMF World Economic Outlook.

Note : Period 2015-19 and 2022-24 values are medians of annual data.

Macroeconomic conditions during the year have been shaped by two opposing forces. On the negative side, the flare-up of trade tensions from April 2025, broader policy fragmentation, and still tight financing conditions in several highly indebted large economies have weighed on trade, investment and confidence. Offsetting this, disinflation has progressed, allowing a shift away from peak monetary restraint, stabilising real incomes and supporting consumption, particularly in larger advanced and Asian emerging economies.

1.2. Disinflation Progresses, but Not Uniformly

Inflation has continued to ease globally, though the path has been gradual and uneven. Advanced economies have seen a meaningful decline in price pressures, with inflation moving closer to pre-pandemic norms. This moderation has been driven by tighter monetary policy, normalisation of supply chains and easing energy prices.

Emerging markets have also experienced disinflation, but inflation levels remain relatively higher. This reflects greater sensitivity to food and fuel prices, exchange rate pass-through and, in some cases, less restrictive policy stances.

The composition of inflation has shifted. Goods inflation has moderated sharply as supply disruptions have receded, while services inflation remains relatively sticky, particularly in labour-tight economies. Wage pressures, though easing, continue to be a key variable in determining the pace of further disinflation.

Retail Inflation (% YoY)

Period	World	Advanced	Emerging Market	EU	China	Japan	US
2015-19	3.3	1.4	4.8	1.2	2.0	0.5	1.8
2022-24	6.7	4.6	8.2	5.4	0.2	2.7	4.1
2025	1 4.1	2.5	5.2	2.1	0.0	3.3	2.7
2026 (E)	3.8	2.2	4.8	1.9	0.7	2.1	2.4
2027 (e)	3.4	2.1	4.3	2.1	1.4	2.0	2.2

Source: IMF World Economic Outlook.

Note : Period 2015-19 and 2022-24 values are medians of annual data.

China presents a contrasting case, with persistently low inflation driven by weak domestic demand. Japan, after decades of low inflation, has seen a delayed but more volatile price cycle, influenced by currency movements and evolving wage dynamics.

1.3. Interest Rates - From Tightening to Gradual Normalisation

The global interest rate cycle has transitioned from aggressive tightening to a more measured phase of normalisation. Major central banks have begun easing policy rates from their peaks, reflecting progress on inflation.

However, financial conditions remain restrictive relative to the pre-pandemic period. Real interest rates are still positive across most advanced economies, and policy rates remain well above the ultra-low levels that characterised the previous decade.

Long-term yields have been more stable, reflecting a balance between declining inflation expectations and persistent term premia linked to fiscal concerns and geopolitical risks. The resulting yield environment is flatter but structurally higher than in the past.

This shift has important implications. While the peak of monetary tightening is behind, the cost of capital remains elevated, influencing investment decisions, asset valuations and capital flows globally.

1.4. Fiscal Constraints and Rising Debt Burdens

Government finances across the world remain under pressure. Fiscal deficits have narrowed from pandemic peaks, but consolidation has been gradual and incomplete. In many advanced economies, higher interest costs are increasingly absorbing fiscal space, limiting the scope for policy flexibility.

Public debt levels have resumed an upward trajectory after a temporary stabilisation. Several economies are now operating with debt burdens close to, or exceeding, pandemic highs. This has heightened sensitivity to interest rates and increased the risk of fiscal stress in vulnerable economies.

Emerging markets face a different set of challenges. While fiscal consolidation has begun in several countries, weaker revenue bases and higher borrowing costs have made adjustment uneven and, in some cases, fragile.

The interaction between fiscal policy, interest rates and growth is likely to remain a defining feature of the global macro landscape.

1.5. Outlook: Stable Growth, Elevated Risks

The global economy is expected to grow at around 3.2-3.3% over the next two years, broadly in line with recent trends. Emerging markets will continue to contribute the bulk of incremental growth, while advanced economies remain in a low-growth equilibrium.

However, the risk environment is unusually elevated. Geopolitical tensions-particularly in West Asia-have reintroduced energy price volatility. Disruptions around critical trade routes and supply chains remain a persistent risk. Trade fragmentation and policy uncertainty continue to weigh on global integration.

At the same time, several positive factors provide a counterbalance. Disinflation is supporting real income growth, monetary policy is gradually easing, and investment in technology and AI is creating new growth impulses.

The baseline outlook is therefore one of stability without comfort-steady growth, but with heightened vulnerability to shocks.

2. Indian Economic Environment and Outlook

2.1. Strong Growth with Improving Composition

Indias growth trajectory has strengthened in both magnitude and quality. Real GDP growth has remained in the 7-7.5% range, positioning India as the fastest-growing major economy globally.

More importantly, the composition of growth has improved. While consumption continues to anchor demand, the current cycle has seen a stronger contribution from investment and exports. Public capital expenditure has played a catalytic role, crowding in private investment and supporting infrastructure development.

Indias GDP Growth (% YoY)

Period	GDP	Private Consumption	Govt. Consumption	Fixed Investment	Export	Import
2015-19	7.4	7.1	7.5	7.8	4.6	4.4
2022-24	7.6	7.5	0.6	8.5	10.3	8.9
2025	1 7.1	5.8	6.5	6.4	6.6	5.3
2026 (E)	7.6	7.7	6.6	7.1	6.5	6.4

Source: Government of India.

Note : Period averages are median. Data for year-ending 31 March of the year.

Export performance, particularly in services, has remained robust despite a challenging global environment. The economy is thus transitioning towards a more balanced growth model, with multiple drivers operating simultaneously.

2.2. Disinflation Without Growth Trade-Off

A notable feature of the current macro environment has been the sharp decline in inflation without a corresponding slowdown in growth. Headline inflation has fallen to relatively low levels, driven by easing food and fuel prices. This contrasts with earlier periods, where inflation moderation was slower and more policy-driven. The current phase reflects a favourable alignment of supply conditions and policy.

Monetary policy has responded with a calibrated shift towards easing, while maintaining positive real interest rates. This has allowed the economy to sustain growth momentum while anchoring inflation expectations.

Inflation, Policy Rate and Interest Rate Environment in India, (% YoY)

Period	CPI Inflation	Repo Rate	91-day T-Bill	10-year G-Sec
2015-19	4.5	6.4	6.6	7.7
2022-24	5.5	5.6	5.9	7.2
2025	4.6	6.5	6.6	6.9
2026YTD	1.9	5.5	5.5	6.5

Sources : MOSPI; RBI: CCIL.

2.3. Fiscal Strategy: Quality Over Quantity

Indias fiscal position reflects a deliberate shift towards quality of expenditure. Strong tax buoyancy-driven by formalisation and compliance-has supported revenue growth, reducing reliance on non-tax sources. At the same time, expenditure has been reoriented towards capital investment. Infrastructure spending has increased significantly, while revenue expenditure has been relatively contained.

Fiscal consolidation is progressing along a gradual glide path, with a clear emphasis on investment-led growth rather than contractionary adjustment. This approach enhances the long-term growth potential of the economy while maintaining macro stability.

2.4. External Sector: Structural Strength with Cyclical Pressures

Indias external balance reflects a combination of structural resilience and cyclical vulnerability. The trade deficit remains elevated, largely due to strong domestic demand and dependence on energy imports. However, the services surplus has emerged as a key stabilising factor. Growth in IT, business and professional services has created a relatively stable and non-cyclical source of foreign exchange earnings.

On the capital account, flows have become more volatile. Lower dependence on short-term capital is a positive structural shift, but it also places greater reliance on domestic savings and reserve buffers. Overall, the external sector is more resilient than in previous cycles, but remains sensitive to global shocks-particularly energy prices and capital flows.

2.5. Outlook: Strong Core, External Sensitivity

Indias growth outlook remains favourable, supported by domestic demand, investment momentum and structural reforms. Macro-financial conditions are supportive, with low inflation, stable interest rates and strong balance sheets across banks and corporates. The key risks are external. Energy price shocks, geopolitical tensions and volatile capital flows could create intermittent pressure on the currency and external balances. The baseline remains one of strong, non-inflationary growth, with the capacity to absorb shocks, though not without short-term volatility.

3. Overview and Outlook of Indian Capital Markets

3.1. Equities: From Outperformance to Reset

Indian equities have transitioned from a phase of sustained outperformance to one of correction and recalibration. Following several years of strong returns and valuation expansion, the market entered a period of adjustment in 2025-26. Foreign outflows, elevated valuations and sectoral earnings moderation contributed to underperformance relative to global peers. The correction has been broad-based, particularly in segments where valuations had become stretched.

This phase is best understood as a reset rather than a reversal. Valuation premia have narrowed, sector leadership has rotated, and forward returns are increasingly tied to earnings rather than multiple expansion.

Equity Market Returns - India vs. the World, %

	Unit	2015-19	2020-21	2022-24	2025	2026
Developed	USD	7.7	17.0	6.9	19.6	-4.2
EM	USD	5.3	3.6	-3.4	31.7	0.2
EU	Euro	5.5	7.8	2.5	18.7	-5.8
US	USD	10.1	22.7	9.8	16.4	-5.0
India	USD	10.4	19.2	7.7	1.5	-16.5
Nifty 50	INR	8.6	19.3	10.3	10.1	-14.6
Nifty 500	INR	8.5	23.0	13.9	6.2	-14.1

Source: MSCI, CEIC.

Note : Returns relate to calendar year. For 2026, return as on 31 March 2026. Unless otherwise mentioned indices relate to MSCI.

3.2. Debt Markets: Stability Amid Heavy Supply

Indias debt markets have remained relatively stable despite significant borrowing requirements. Yields have moderated from peak levels, reflecting easing inflation and supportive liquidity conditions. However, the supply of government securities remains elevated, creating a structural floor for yields. The interplay between fiscal borrowing, global rates and domestic liquidity has resulted in a relatively anchored yield curve. India continues to offer a meaningful real yield premium, making it attractive from a global perspective, though not immune to external pressures.

3.3. Outlook: Near-Term Volatility, Medium-Term Strength

The sharp underperformance of Indian equities since 2025 has largely been a valuation and positioning reset after years of outperformance, not a fundamental break in the story. Multiple years of high returns left pockets of the market expensive just as global rates stayed elevated and capital rotated towards Al-centric and developed markets, triggering sustained FPI selling even as domestic investors kept buying. With this correction, valuation premia over global peers have compressed and FPI ownership in Indian equities has fallen, reducing crowding risk and improving the medium term risk-reward for new capital.

Looking ahead, the equity outlook hinges on a still robust macro backdrop-fastest-growing major economy, low and stable inflation, healthy bank and corporate balance sheets-and on the breadth of earnings growth beyond a handful of sectors. Services exports and public capex continue to underpin aggregate demand, while rising domestic financialisation provides a sticky source of equity demand that can partly offset foreign risk-off phases.

Near-term, however, global and local headwinds argue for continued volatility. The Israel-US war with Iran and associated supply disruptions are likely to keep oil and gas prices elevated, complicating inflation, fiscal and external

balances. High gross borrowing by the Centre and states, portfolio debt outflows, large government-securities inventories at public banks and the risk of fiscal slippage via higher subsidies or lower fuel taxes all point to a period of relatively firm bond yields despite RBI liquidity support.

Taken together, this argues for a constructively cautious stance: in the near term, lingering FPI risk aversion, high global rates and geopolitics can cap multiples and keep yields elevated. Beyond the first-half of 2026-27 and especially from 1-3 year perspective, however, Indias combination of growth, macro stability, deepening domestic savings and improving entry valuations still supports a positive outlook for both equities and high- quality duration, especially once the global rate cycle turns more decisively.

4. Wealth Management Industry: Performance and Prospects

4.1. Global Context: Growth with Under-Penetration

Global financial wealth continues to expand, supported by market performance and steady savings accumulation. The global pool of financial wealth reached $305 trillion in 2024, an all-time high ( Source: BCG Global Wealth Report 2025) with medium-term growth expected to remain in the mid-single digits. This expansion has been driven by a combination of market performance-particularly equities-and steady accumulation of savings, even as interest rate cycles and geopolitical disruptions have introduced periodic volatility.

However, a significant portion of this wealth remains outside professionally managed channels. This under-penetration is particularly pronounced in emerging markets, where a large share of assets is held in deposits, physical assets or directly managed portfolios. This creates a structural opportunity for the wealth management industry.

4.2. India: From Saving to Investing

Indias household savings behaviour is undergoing a gradual transformation. While physical assets remain significant, there is a clear shift towards financial instruments. This transition is not linear. Cyclical factors continue to influence savings patterns, but the long-term trend is towards greater financialisation, supported by rising incomes and improved access to financial products.

Household Savings in India

Period	Total net of liabilities	Gross financial	Net financial	Liability	Physical	Jewellery	Gross savings
			1000 Crores
2015-19	2,968	1,738	1,187	551	1,736	46	3,519
2020-21	4,175	2,696	1,940	756	2,194	42	4,931
2022-24	5,310	3,057	1,598	1,458	3,579	133	6,769
2025	^^ 6,901	3,828	2,257	1,571	4,425	218	8,472
			% of GDP
2015-19	24.0	14.0	9.6	4.4	14.0	0.4	28.4
2020-21	29.7	19.2	13.8	5.4	15.5	0.3	35.0
2022-24	24.1	13.7	7.5	6.2	16.0	0.5	30.2
2025	21.7	12.0	7.1	4.9	13.9	0.7	26.6

Source : RBI. MOSPI.

4.3. Financial Wealth: Scale and Diversification

Indias household financial wealth has expanded rapidly over the past decade, rising more than threefold between 2015 and 2025, but the composition of this wealth has shifted in important ways. Deposits continue to remain the largest component, though their share has declined from about 46% to 36%. While absolute savings in bank instruments have grown steadily, households are increasingly allocating incremental savings to a broader set of financial assets.

Financial Wealth of Indian Households

Financial Product	2015 (J Lakhs Crores)	2015 (%)	2025 (J Lakhs Crores)	2025 (%)	CAGR (%)
Currency	13.9	10.7	35.4	8.0	9.8
Deposits	59.9	46.3	158.2	35.9	10.2
Equity (Direct)	7.9	6.1	43.6	9.9	18.6
Equity Mutual Funds	3.2	2.5	33.0	7.5	26.3
Mutual Funds (Others)	2.4	1.8	13.3	3.0	18.7
Government Sec.	1.3	1.0	2.5	0.6	6.8
Small Savings	6.1	4.8	24.0	5.4	14.7
Insurance	24.2	18.7	75.8	17.2	12.1
PF and Pension	10.3	8.0	55.0	12.5	18.2
Total Financial Assets	^^^^^129.2	100.0	440.8	100.0 \u25a0	13.0

Source: MOSPI, RBI, SEBI, AMFI, Anand Rathi Research.

The most striking change is the sharp rise in market- linked instruments. Direct equity holdings have grown strongly, while equity mutual funds have expanded at an even faster pace, reflecting a clear shift towards intermediated participation in capital markets. This trend is consistent with data from the Reserve Bank of India and market regulators, which point to sustained inflows into mutual funds, growing retail demat accounts and increasing familiarity with financial products. The rise of systematic investment plans, digital distribution platforms and greater financial awareness has played a central role in this transition.

At the same time, contractual savings-insurance and provident/pension funds-have remained a stable and growing pillar, together accounting for nearly 30% of financial assets. Their steady expansion reflects rising formalisation of the economy, increased retirement planning and policy support for long-term savings instruments.

Other categories present a more nuanced picture. Currency holdings have declined as a share of wealth, reversing the temporary surge seen during the pandemic years. Small savings have held their share broadly stable, supported by administered interest rates and their appeal

among risk-averse households. Government securities remain a marginal component, reflecting limited direct household participation.

The evolution of household financial wealth in India points to a gradual but clear financialisation of savings, driven by rising incomes, improving access to financial products and the deepening of capital markets. While traditional instruments continue to dominate, the faster growth of equities, mutual funds and retirement-linked assets indicates a steady shift towards more diversified and market-oriented portfolios.

4.4. Industry Outlook: Structural Tailwinds

Indias wealth management industry is entering a structurally stronger phase, driven less by market cycles and more by behavioural and institutional shifts. One of the most important changes underway is the gradual move from do-it-yourself investing to professionally managed portfolios. While direct participation in equities has increased, a growing share of incremental flows is now being channelled through intermediated products such as mutual funds, portfolio management services and advisory-led solutions. Data indicate rising participation alongside increasing use of structured investment vehicles, suggesting that investors are moving beyond opportunistic trading towards more disciplined allocation.

This transition is particularly pronounced in the HNI and UHNI segments, which represent the most attractive opportunity for the industry not only in India but in the global context as well. These investors typically have more complex balance sheets, multi-asset exposure and intergenerational objectives, making professional advice not just desirable but necessary. As wealth expands- driven by entrepreneurship, financialisation of savings and strong capital market performance-the need for portfolio construction, risk management and estate planning is becoming more central.

A parallel and equally important driver has been the sustained push towards investor education. Regulatory initiatives, industry efforts and digital dissemination of information have collectively improved financial literacy. The steady rise of systematic investment plans and longterm holding behaviour suggests that a meaningful segment of investors is transitioning from short-term speculation to goal-oriented investing. This has helped reduce the tendency to time markets and has increased acceptance of volatility as part of long-term wealth creation.

Indian wealth management industry is one of the fastest growing globally and at over $5 trillion has become sizable. The combination of rising financial wealth, increasing complexity of investor needs and improving investor behaviour is likely to support sustained growth

in professionally managed assets, with the HNI and UHNI segments at the core of this expansion.

The Indian wealth management industry is entering a structurally favourable phase. Growth is being driven not only by rising wealth, but also by behavioural shifts towards professional management. The HNI and UHNI segments represent the most significant opportunity, given their increasing complexity of financial needs. At the same time, improved investor education is fostering a shift from speculative behaviour to disciplined investing. The industrys growth trajectory is therefore likely to be sustained and broad-based.

5. Anand Rathi Wealth - Business Model and Positioning

5.1. Pure-Play Private Wealth Business

Anand Rathi Wealth Limited (ARWL) operates with a clear strategic focus as a pure-play wealth solutions firm. Unlike diversified financial institutions that combine lending, broking or investment banking with advisory, ARWL has built a singularly focused business centred on providing uncomplicated, transparent, fearless and data driven wealth solutions to ultra-high-net-worth (UHNI) and high- net-worth (HNI) clients.

At the core of this model is the Private Wealth business, which contributes the majority of revenues and profits. The firms approach is fundamentally solution-oriented rather than product-led. Portfolios are constructed through a disciplined framework that prioritises asset allocation, risk calibration and long-term compounding, rather than shortterm market opportunities.

Over time, the firm has expanded its engagement from wealth creation to include wealth protection and intergenerational transfer, evolving into a more comprehensive wealth solutions platform. However, the strategic anchor remains unchanged-a focused, process-driven private wealth business.

5.2. Scaling with Discipline

ARWL has delivered consistent growth across assets under management (AUM), revenues, and profit especially post public listing four years ago, reflecting both steady client acquisition and a deeper wallet share.

Total revenue rose from H425 Crores in FY22 to H1,198 Crores in FY26, registering CAGR of 30%. The composition of revenues has steadily shifted towards mutual fund distribution income, improving earnings visibility. Mutual fund distribution income grew at CAGR of 34% from H154 Crores in FY22 to H494 Crores in FY26 and as % of total revenue improved from 36% in FY22 to 41% in FY26. PAT grew from H125 Crores in FY22 to H386 Crores in FY26,

registering CAGR of 33%. (Note: FY26 figures are excluding fair value gains on investments of H54.6 Crores, ESOP expenses of H39.3 Crores, and the related combined tax effects of H3.8 Crores).

AUM growth has been robust, supported by net inflows, rising client engagement and favourable market conditions. AUM expanded from H32,906 Crores as of 31 March 2022 to H93,037 Crores as of 31 March 2026, CAGR 30%.

The number of client families increased from 7,082 as of 31 March 2022 to 13,395 as of 31 March 2026. Relationship managers grew from 271 to 401 over the same period, while the office network increased from 11 to 18 locations in India, and our international presence expanded from Dubai to the UK, with approvals currently underway for Bahrain and GIFT City.

5.3. Client Segmentation

ARWLs Private Wealth business is built around a clearly defined client segment-HNI and UHNI families-with investable surpluses typically exceeding H5 Crores. The company manages clients across different stages of their financial lifecycle, from wealth creation during peak earning years to preservation and succession planning in later stages.

Client relationships are characterised by a long-term orientation, with portfolios constructed around clearly defined financial goals rather than episodic market opportunities. The average relationship size has steadily increased over time, reflecting both rising affluence and ARWLs ability to deepen wallet share. Importantly, the firm maintains a calibrated client-to-relationship-manager ratio, ensuring personalised engagement while retaining scalability. The complexity of client needs-ranging from return generation to capital preservation and succession planning-is addressed through a structured framework. This positions ARWL as a long-term partner rather than a transactional intermediary.

5.4. Holistic Wealth Solutions

ARWLs proposition extends beyond portfolio construction to a broader framework encompassing wealth creation, protection, and transmission. While wealth creation remains the core, the firm has progressively expanded its offering to address adjacent needs that are critical for client families.

On the creation side, portfolios are built using a model-based approach with a focus on consistency, risk management, and long-term compounding. This is complemented by wealth protection solutions, including structured products and strategies designed to mitigate downside risks and preserve capital across market cycles.

The third pillar-wealth transmission-has gained increasing importance as client relationships mature. ARWL supports clients in planning inter-generational transfers, ensuring continuity of wealth through appropriate structuring and advisory inputs. This integrated approach allows the firm to move from a product-centric to a solutioncentric strengthening client stickiness and enhancing lifetime value.

At the core of ARWLs uncomplicated philosophy lies a structured solution that converts financial complexity into clear, actionable pathways for clients. This is anchored by relationship managers (RMs), supported by account managers (AMs), product specialists, and an in-house research function. RMs serve as the primary interface, aligning investment strategy with client objectives and risk appetite. AMs ensure seamless execution and continuity, while product and research teams undertake rigorous evaluation of investment opportunities and portfolio construction.

A defining feature of this approach is consistency- clients, irrespective of size, receive uniform offerings. By combining specialised expertise with a standardised process, ARWL delivers clarity in an otherwise complex financial environment, reinforcing its role as a long-term wealth partner rather than a transactional intermediary.

5.5. Data-Led Decision Architecture

Beneath an uncomplicated client experience, ARWLs investment approach is supported by a rigorously structured, data-driven decision-making architecture. The process is anchored in quantitative frameworks that emphasise objectivity and consistency, ensuring that decisions are based on empirical evidence rather than market narratives.

The process begins with a comprehensive evaluation of investment products using established statistical models and screening mechanisms. Products are assessed across defined parameters, including risk-adjusted returns, liquidity, downside protection, and performance consistency. This evaluation is supported by quantitative techniques such as historical performance analysis and scenario testing, which act as internal filters for product selection.

Portfolio construction is subsequently undertaken through a rule-based framework designed to minimise behavioural biases and ensure adherence to stated investment principles. This disciplined approach also supports scalability, enabling consistent portfolio outcomes across a growing client base.

The investment framework is operationalised through structured tools that facilitate both internal decision-making

and external communication. A standardised approach consolidates return expectations, risk parameters, and portfolio assumptions into a common reference framework for advisors and clients. The design of these tools emphasises clarity and consistency, with underlying analytical complexity embedded within the system.

In periods of market volatility, predefined decision frameworks guide portfolio actions, including maintaining allocations, rebalancing, or adjusting exposures within defined parameters. This approach reduces reliance on discretionary judgement and supports alignment with longterm investment objectives. Teams operate within clearly articulated principles, ensuring consistency in investment actions and client communication.

Accordingly, market volatility is incorporated within the investment process as an expected condition, enabling portfolios to remain aligned with stated objectives while supporting informed client engagement.

5.6. From Goals to Portfolios: The Journey

ARWLs offering is designed as a continuous process rather than a one-time exercise. It begins with a detailed assessment of client objectives, risk tolerance, and time horizon, and extends through defining strategy, portfolio construction, execution, and ongoing review. The strength of this framework lies in its ability to convert financial planning into a structured investment pathway. Asset allocation, product selection, and performance evaluation are all anchored to clearly defined client goals, ensuring that portfolios evolve in line with changing circumstances rather than market noise. Relationship managers are equipped to communicate portfolio strategy and outcomes in a clear, intuitive manner-bridging the gap between analytical complexity and client understanding. This ensures that decision-making remains informed.

5.7. Plan A: Equity Mutual Funds

ARWLs primary investment approach, Plan A, is centred on mutual funds as the core vehicle for long-term wealth creation. From a large and fragmented universe, the firm identifies a select set of funds through a disciplined evaluation process that emphasises consistency, risk- adjusted performance, and fund management quality. These funds are integrated into model portfolios that combine asset allocation and fund selection into a single framework. This eliminates the need for clients to navigate multiple categories or make tactical allocation decisions. Instead, portfolios are constructed to deliver steady compounding through a coherent, long-term strategy. The result is a standardised yet flexible approach-capable of maintaining consistency across clients while adapting to different risk profiles and investment horizons.

5.8. Plan B: Structured Products as a Stabiliser

Plan B complements the core portfolio by introducing structured products aimed at enhancing portfolio stability. These instruments are selectively deployed to manage downside risk and provide greater visibility on return outcomes, particularly in uncertain market environments. While the underlying structures can be complex, ARWLs approach focuses on outcome-based communication. Clients are presented with clearly defined scenarios- covering potential returns, protection levels, and investment timelines-allowing them to evaluate trade-offs without engaging with product intricacies. Used judiciously, structured products serve as a stabilising layer within the portfolio, balancing the growth orientation of mutual fund investments with elements of predictability.

5.9. Centralised Expertise

The delivery of simplified advice is underpinned by a centralised ecosystem of specialist teams across research, product, and portfolio construction. These teams are responsible for identifying opportunities, monitoring performance, and continuously refining model portfolios. A key feature of this architecture is the presence of defined internal filters and approval processes. Every recommendation undergoes rigorous evaluation before being incorporated into client portfolios, ensuring consistency in both quality and communication. This centralisation of expertise allows relationship managers to focus on client engagement while relying on a robust institutional framework for investment decisions. It also ensures that, regardless of scale, each client benefits from the same disciplined approach-where complexity is absorbed within the system and delivered as clarity at the front end.

5.10. Other Businesses: Technology-Led Extensions

In addition to the Private Wealth (PW) segment, ARWL has broadened its service offerings through two additional verticals. Digital Wealth and the Omni Financial Advisory (OFA) platform. These platforms are designed to cater to a broader segment of clients, leveraging digital interfaces and scalable processes while retaining the firms underlying investment philosophy.

1. Digital Wealth (DW):

Digital wealth business is an extension of our established private wealth expertise. The same investment discipline - uncomplicated, transparent, fearless, data driven and client-first philosophy that define our Private Wealth practice now empower our Digital Wealth platform. In todays rapidly evolving fintech landscape, technology is not merely a tool -

it is the infrastructure through which we are scaling trusted, personalised wealth services to a broader universe of investors.

We are streamlining wealth services strategies to make it more efficient, smart and accessible for the growing mass affluent segment--individuals with investible assets between H10 Lakhs and H5 Crores. Our distinctive phygital model integrates the care of personal touch with the speed and convenience of technology. This ensures that clients not only receive expert guidance tailored to their goals but also benefit from seamless digital experiences.

2. Omni Financial Advisor (OFA):

The Omni Financial Advisor (OFA) platform is a flagship strategic initiative of the Company, purpose-built to empower Mutual Fund Distributors (MFDs) and Independent Financial Advisors (IFAs/ ARN holders) with a robust, technology-driven digital infrastructure. At its core, OFA is designed to enable distributors to scale their business, deepen client relationships, and operate with greater professionalism, transparency, and efficiency in an increasingly competitive landscape. Strong potential exists to improve scalability through the development of structured client engagement frameworks, supporting sustainable growth. OFA was conceived precisely to bridge these gaps - equipping MFDs and IFAs with the digital capabilities they need to thrive in an ever-changing financial landscape and achieve long-term, sustainable success.

The OFA platform offers a co-branded, mobile-first experience designed for both the distributor and their end clients, ensuring seamless accessibility and a consistent brand identity.

5.11.Strategic Priorities and Outlook

ARWLs primary strategic focus remains deepening wallet share within existing client families while adding new clients in the HNI and UHNI segments. In parallel, ARWL is investing in specialised capabilities across areas such as taxation, estate planning, and product structuring. These capabilities are intended to support relationship managers in addressing increasingly complex client needs, thereby enhancing the depth and quality of engagement without diluting uncomplicated approach with client interactions.

Sustaining growth will require parallel investment in people and culture. ARWL is focused on developing the next line of leadership, building succession pipelines, and strengthening regional teams to support geographic

expansion. At the same time, there is a conscious effort to preserve the cultural attributes-ownership, transparency, and client-first thinking-that underpin the firms uncomplicated philosophy. As the organisation scales, maintaining this cultural continuity will be critical to ensuring consistency in client experience.

Outlook

The medium-term outlook for ARWL remains favourable, supported by structural tailwinds in Indias wealth management industry, including rising financialisation of savings and increasing demand for professionals. At the same time, the firm remains cognisant of key risks, including market volatility, evolving regulatory frameworks, and the need to scale without compromising quality. Within this context, ARWLs approach is likely to remain measured and disciplined, focusing on sustainable growth, high- quality client acquisition, and continued strengthening of its core business model.

Key growth drivers shaping the Companys long-term growth roadmap are as follows.

1. Penetration in the existing 13,300+ clients families. There is a massive scope for increasing our wallet share.

2. Addition of new clients.

3. Addition of new relationship managers.

4. Return on investments gets added to AUM.

We believe these four growth pillars will drive our growth by 20% or more annually. This ambitious yet achievable target is backed by our proven track record and strategic insights, reinforcing our position as a leader in Indias wealth management sector.

6. Risk Management and Internal Controls

6.1. Risk Governance Framework

ARWL operates within a well-defined risk governance structure anchored by Board oversight and supported by specialised committees. These bodies are responsible for setting the firms risk tolerance level, approving key policies, and ensuring that risk considerations are embedded across business decisions. The governance framework is designed to provide clear accountability and timely escalation of issues. Regular reviews of risk exposure, control effectiveness, and compliance status ensure that emerging risks are identified and addressed proactively. This structured oversight enables the firm to balance growth objectives with prudent risk management.

6.2. Principal Risks and Mitigation

As a wealth solutions firm, ARWL is exposed to a range of risks including market, regulatory, operational, technology, people, counterparty, and reputational risks. Market volatility can impact client portfolios and engagement levels, while regulatory changes may influence product structures and distribution practices.

These risks are mitigated through a combination of disciplined processes and cultural attributes. A data- driven investment framework helps manage market- related risks, while robust due diligence and diversification reduce counterparty exposure. Operational and technology risks are addressed through standardised processes and system controls.

Importantly, training, transparency, and a client-first culture play a central role in mitigating reputational and advisory risks. Clear communication of risks and realistic expectations helps build resilience in client relationships, particularly during periods of market stress.

6.3. Internal Controls and Compliance

ARWL maintains a strong internal control environment covering both financial reporting and business operations. Established processes and checks ensure accuracy, completeness, and reliability of financial information, while operational controls safeguard against process lapses. The compliance framework is aligned with applicable regulatory requirements, supported by monitoring systems and periodic audits. There is continuous oversight to ensure adherence to policies and timely resolution of any observations. As per publicly available disclosures, there are no material regulatory matters that adversely impact the firms operations, reflecting the strength of its compliance discipline.

6.4. ESG Framework

ARWLs approach to responsible wealth solutions begins with its philosophy, anchored in suitability, transparency, and client education. Investment recommendations are aligned with client goals, risk appetite, and time horizon, ensuring that portfolios are constructed with a clear understanding of potential outcomes. Communication is structured to present both risks and returns in a balanced manner, avoiding over-promising or product-led bias. This is complemented by ongoing client education, helping clients understand market behaviour, portfolio dynamics, and the importance of long-term discipline. By embedding responsibility within the processes, ARWL seeks to foster informed decision-making and sustainable wealth creation.

- Environment - ARWL promotes digital-first interactions and paperless processes, reducing its environmental footprint while delivering efficient and accessible financial services to clients. ARWL is committed to sustainable practices such as reducing carbon emissions, enhancing energy efficiency and preserving natural resources. Such companies are better positioned to comply with environmental regulations and mitigate associated risks.

- Social - ARWL places client well-being at the heart of its approach - ensuring suitability- based recommendations, balanced risk-return communication, and ongoing financial education to foster informed decision-making across the mass affluent segment.

Investment recommendations are guided by a robust governance framework rooted in transparency, ethical conduct, and the absence of product-led bias - ensuring client interests remain paramount in every interaction.

The company focuses on strong social practices, including promoting diversity and inclusion, maintaining fair labour practices and engaging in community development.

- Governance - Anand Rathi Wealth Limited is dedicated to maintaining the highest standards of corporate governance. Our commitment to these standards underpins our corporate integrity and accountability to all stakeholders.

The Board of Directors of the Company is carefully structured to achieve an optimal balance, consisting of executive and non-executive directors, including an Independent Woman Director. The Board epitomizes a blend of professionalism, knowledge, and experience, contributing significantly to the strategic direction of the Company. Our Independent Directors are particularly noted for their professional integrity, as well as their extensive expertise and experience, which are invaluable to our leadership framework.

6.5. People and Community Initiatives

ARWLs people practices reflect its broader values of integrity, ownership, and long-term orientation. Investments in training, leadership development, and employee engagement are designed to build a workforce that consistently delivers high-quality advisory while upholding ethical standards.

The firms corporate social responsibility (CSR) initiatives extend these values to the wider community. Through focused programmes in areas such as education, healthcare, and social welfare, ARWL contributes to inclusive development. These initiatives are structured to create meaningful and measurable impact, aligning with the firms philosophy of responsible growth.

6.6. Governance and Stewardship

Governance at ARWL serves as the outer layer of protection for all stakeholders-clients, employees, and shareholders. The firm operates within a robust governance framework comprising an independent Board, specialised committees, and clearly defined policies. This structure ensures accountability, transparency, and adherence to regulatory standards, while also guiding ethical decision-making across the organisation. By maintaining high standards of governance and stewardship, ARWL reinforces trust and ensures that its growth is both sustainable and aligned with stakeholder interests.

Cautionary Statement

This document contains statements that may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements include, but are not limited to, projections, estimates, expectations, and outlook regarding future financial performance, business strategies, market conditions, and growth prospects of Anand Rathi Wealth Limited.

Forward-looking statements are based on current assumptions, expectations, and beliefs, and are subject to a range of known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. These factors include, but are not limited to, changes in economic conditions, market volatility, regulatory developments, competitive dynamics, and other external or internal factors beyond the Companys control.