Angel One Ltd Management Discussions

Global Economy

The global economy exhibited resilience amidst mounting challenges of prolonged inflation, elevated interest rates and geopolitical tensions in 2024. According to the International Monetary Fund (IMF), global GDP growth held steady at 3.2%, mirroring the pace of 2023. While this remained below the pre-pandemic average of 3.8%, it highlighted the underlying strength of economic fundamentals. Notably, advanced economies saw a modest acceleration from 1.6% in 2023 to 1.8% in 2024, while large emerging markets such as India maintained solid momentum, supporting global economic stability.

Several positive macroeconomic indicators underscored the stability of this period. Labor markets across major economies remained robust, with low unemployment rates and a steady rise in nominal wages, particularly in service- driven sectors. This supported household consumption and partially countered the effects of past inflation. More importantly, inflation began to ease globally, with headline inflation declining from 6.8% in 2023 to an estimated 5.9% in 2024, with a further fall to 4.5% expected in 2025.

This successful transition from high inflation to a more stable price environment, without triggering widespread economic contraction, demonstrated a significant macroeconomic achievement. It gave central banks the bandwidth to shift from aggressive monetary tightening to a more balanced policy posture, offering a path toward sustainable growth.

Global financial markets reflected this evolving narrative. Equities posted moderate gains amid improving earnings visibility and lower inflationary trends, while bond markets stabilised as interest rate expectations normalised. However, financial volatility persisted due to geopolitical risks, trade tensions, particularly between the U.S. and China, and uneven growth across regions. Despite these headwinds, strong investment cycles, digital transformation and resilient consumer demand continued to bolster confidence. The outlook for CY2025 remains cautiously optimistic, supported by steady macroeconomic fundamentals and improving conditions in both the real economy and financial markets.

Outlook

The global economic outlook is marked by cautious optimism tempered by significant challenges. The aggressive trade policies, particularly the imposition of broad U.S. tariffs, has introduced new uncertainties, potentially dampening global trade and investment. Escalating protectionism and tariffs put the global economy at the risk of stagflation, while tax cuts and deregulation may bolster investment and private sector capex.

Emerging connector economies—nations with strategic geographic advantages and preferential trade agreements— will play a growing role in global trade realignments. Meanwhile, inflation is expected to continue easing but remains vulnerable to supply chain disruptions, geopolitical tensions and volatile commodity prices.

While monetary policy recalibration is anticipated, central banks will need to balance the inflationary risks, against the need to support growth. As a result, global monetary policies may remain desynchronised, with central banks adjusting policies based on domestic and international conditions. Policymakers, businesses and investors are likely to navigate these uncertainties, to sustain economic and financial stability.

Financial markets are navigating this complex landscape with heightened sensitivity to policy shifts and geopolitical developments. Majority of the equity markets have shown resilience, supported by strong corporate earnings and investor optimism. However, bond markets remain volatile, reflecting uncertainties around interest rate trajectories and inflation expectations. The IMF has emphasised the importance of resolving trade tensions to restore market confidence and ensure sustained economic growth. In this environment, investors will remain vigilant as they diversify portfolios and monitor policy developments closely.

Indian Economy

India has emerged as the fastest-growing major economy over the past decade, expanding from US$ 2.1 trillion in 2015 to US$ 4.3 trillion in 2025, surpassing all other major economies in growth rate and solidifying its position as a global economic powerhouse.

This impressive expansion is attributed to a combination of structural reforms, technological advancements and a favourable demographic dividend. Indias focus on digital infrastructure, financial inclusion and manufacturing has fuelled domestic productivity, while its expanding services sector, particularly in IT and financial services, has remained a key driver of growth. Public investments in infrastructure, combined with a push for self-reliance in critical sectors, have also played a crucial role in accelerating economic momentum.

Furthermore, India is on the brink of surpassing Japan (US$

4.4 trillion GDP) as the worlds fourth-largest economy by the third quarter of 2025. If the current trajectory holds, India is projected to overtake Germany (US$ 4.9 trillion) as the third-largest economy by 2027-28. The countrys economic resilience is underpinned by sound macroeconomic policies, a robust banking system and steady fiscal consolidation.

Inflation has been managed within the Reserve Bank of Indias target band, despite occasional food price fluctuations and the financial sector remains stable with non-performing assets at multi-year lows.

Despite global headwinds, Indias GDP is estimated to grow at 6.5% in FY24-25, reinforcing the strength of the countrys domestic demand. As Indias economy is likely to benefit from the change in global order, it stands to gain momentum as a manufacturing hub for global consumption.

Outlook

Indias economic outlook remains highly optimistic, with projections suggesting an addition of US$ 1 trillion to GDP every 1.5 years. By the end of 2032, India could emerge as a US$ 10 trillion economy (IMF data), fuelled by strong domestic consumption, expanding global trade partnerships and increasing foreign direct investment.

Key growth drivers include manufacturing and infrastructure, with initiatives such as Make in India and the National Infrastructure Pipeline boosting industrial output and logistics efficiency. The rapid expansion of the digital economy, fintech innovations and the startup ecosystem continues to enhance productivity and economic participation. Enhanced ease of doing business and economic diplomacy efforts aim to attract higher foreign investments and integrate India into global value chains.

Despite the positive trajectory, several challenges remain. Global economic fragmentation and geopolitical tensions could impact external trade, while oil price volatility poses a risk to fiscal stability. Domestically, inflationary pressures,

uneven rural recovery and climate-related disruptions in agriculture could create potential headwinds.

To sustain high growth, India must contin?e implementing comprehensive structural reforms. Strengthening governance, reducing regulatory complexities, fostering labour market flexibility and further integration into global trade networks, will be critical. With sustained policy focus and strategic investments, India is well-positioned to achieve its vision of becoming an advanced economy by 2047.

Indias foreign direct investment (FDI) inflows surpassed US$ 1 trillion in 2024, with a robust 26% y-o-y growth to US$ 42.1 billion in H1 FY25. This reflects confidence in Indias policy reforms, including GST simplification and sectoral liberalisation. The World Competitive Index ranking improved to 40th in 2024, while the Global Innovation Index leapfrogged 41 positions since 2015. Multinationals like Apple and Samsung have expanded operations, leveraging Indias cost-competitive labour and strategic location, linking Europe, Africa and Asia.

Indias demographic profile is one of the greatest economic strengths, with a current median age of around 28 years, significantly lower than that of developed economies. The country is expected to witness a steady increase in its working-age population, with about 120 million individuals projected to enter the workforce by 2040. This demographic dividend, coupled with rising urbanisation, job creation and digital adoption, is poised to accelerate per capita income. As incomes rise, so too will household savings, with a growing share of these savings expected to move from physical assets to financial instruments. This shift presents a tremendous opportunity for the financial services industry, as more Indians seek to invest in equities, mutual funds, insurance and other market-linked products to secure and grow their wealth.

Indias 100% GDP Growth In 10-Years Stuns the World

Chained real GDP in 2025 U.S. dollars (inflation-adjusted)

Countries	2015 GDP	2025GDP	Change
India	$2.1T	$4.3T	105%
United States	$18.3T	$30.3T	66%
China	$11.1T	$19.5T	76%
Germany	$3.4T	$4.9T	44%
Japan	$4.4T	$4.4T	0%
United Kingdom	$2.9T	$3.7T	28%
France	$2.4T	$3.3T	38%
Italy	$1.8T	$2.5T	39%
Canada	$1.6T	$2.3T	44%
Brazil	$1.8T	$2.3T	28%
Russia	$1.4T	$2.2T	57%
South Korea	$1.5T	$1.9T	27%
Australia	$1.2T	$1.9T	58%
Spain	$1.2T	$1.8T	50%

Capital Markets: A New Era of Democratised Investing

Indias capital markets have witnessed unprecedented expansion over the past five years, marking a significant shift in the countrys investment landscape. This evolution has primarily been driven by the surge in retail investor participation, underpinned by rising financial awareness, rapid digital adoption, innovative FinTech platforms and robust guardrails, created by regulatory foresightedness. From 40.9 million demat accounts at the end of FY2020,

India saw a 4.7x increase to 192.4 million demat accounts by the close of FY25. Similarly, the number of active clients on the NSE grew 4.6x to reach 49.2 million. Mutual fund participation also soared, with unique investors growing 2.6x to 54.2 million. These numbers are a strong indicator of the growing trust in capital markets and the structural deepening of Indias retail investment ecosystem.

FY25 presented a mixed, yet eventful year for Indian equities. The markets began the year with a sense of caution ahead of the general elections. The uncertainty persisted until the national election results were announced on 4th June 2024, with markets declining by 2.0% during this period. However, the re-election of the NDA government brought clarity and optimism, leading to a sharp rally through September 2024. This rally was characterised by multiple all-time highs, reflecting investor confidence in policy continuity, economic reforms and Indias long-term growth prospects. However, the second half of the year was marked by a correction phase, with markets declining for five consecutive months from October 2024 to February 2025.

This correction phase was largely influenced by global headwinds, regulatory changes and domestic valuation concerns. Muted corporate earnings and stretched valuations prompted foreign institutional investors to adopt a cautious approach. Globally, a major fiscal stimulus announced by China and a shift in political leadership in the United States contributed to volatility and an acceleration of FII outflows from emerging markets. During this period, India witnessed US$ 36 billion of FII outflow, second only to US$ 40 billion outflow experienced between October 2021 to June 2022. Despite these challenges, Indian equities demonstrated resilience, bouncing back strongly in March 2025. The BSE Sensex ended the fiscal year with a gain of 3,763.57 points (5.1 %), while the NSE Nifty rose by 1,192.45 points (5.3%). The total market capitalisation of NSE-listed companies surged by H26.7 trillion, reaching H410.9 trillion, reflecting investors faith in Indias long-term fundamentals.

One of the standout features of FY25 was the consistency and strength of retail flows into the market, particularly through SIPs. March 2025 witnessed SIP inflows of H259.3 billion, up from H192.7 billion in March 2024. Average monthly SIP inflows stood at a record H241.1 billion in FY25, registering a robust 45.2% y-o-y growth. Cumulative SIP contributions for FY25 touched H2.9 trillion, up from H2.0 trillion in FY24. This was in addition to H1.3 trillion of direct net investments by individual investors in the cash segment of Indias capital markets. This growing trend of disciplined, long-term investing by retail investors has helped cushion the market against short-term volatility, and reflects a maturing investor base that is increasingly aware of wealth- building opportunities in financial markets.

The IPO market in India also reached historic milestones during FY25, surpassing even China to emerge as Asias leading IPO destination. As per NSE Market Pulse, Indias IPO fundraising more than doubled from H0.7 trillion in FY24 to H1.7 trillion in FY25. This record-breaking surge was underpinned by favourable macroeconomic conditions, proactive regulatory support, strong corporate fundamentals and growing retail investor enthusiasm.

The increasing shift of domestic household savings from traditional instruments to market-linked products reflects a

structural evolution. Digital platform players have been key enablers of this shift, offering seamless access to capital markets.

As Indias economy continues to formalise and digitise, and more investors enter the market, capital markets will remain pivotal to the nations growth journey. While global factors and policy shifts may trigger intermittent volatility, the long- term outlook remains buoyant, driven by growth in per capita income, structural reforms, financial democratisation and a rising investor class.

Credit Market OverView:

FY25 and Outlook

Indias credit industry is poised for sustained long- term growth, driven by rising demand and structural transformation. Credit penetration in India remains significantly lower compared to developed economies, with the credit-to-GDP ratio still below 60%, offering substantial headroom for expansion. Aspirations in Tier 2, 3 and beyond cities continue to fuel this demand, as more individuals and small businesses seek access to formal credit. The Account Aggregator (AA) framework is emerging as a powerful enabler, unlocking seamless, consent-based data sharing to improve underwriting quality and reduce information asymmetry. Simultaneously, advancements in digital KYC, fraud detection, and identity verification are resolving long-standing operational and risk-related challenges, paving the way for faster and safer customer onboarding. Importantly, the industry is beginning to address the issue of over-leverage through data-driven, stringent underwriting practices, promoting healthier loan portfolios. As financial institutions adopt smarter credit models and regulatory oversight strengthens, systemic risks are expected to decline. With digital infrastructure maturing rapidly and credit access becoming more inclusive, India is on the cusp of a credit revolution. The industrys trajectory points towards sustainable, responsible, and broad-based growth, positioning it as a critical pillar in Indias economic journey over the coming decade.

Asset Management & Wealth Management Industry

Indias asset and wealth management industries experienced robust growth in FY25, fuelled by a confluence of favourable macroeconomic conditions, rising affluence, greater digital adoption and evolving investor behaviour. A vibrant economy, higher income levels and a marked shift from physical to financial asset ownership, are structurally strengthening demand for professional wealth and asset management services.

The Indian economys expansion has created ripple effects across wealth tiers, leading to a surge in new High Networth Individuals (HNIs) and affluent households. A generational wealth transfer to a growing segment of affluent millennials is reshaping the investment landscape, as newer investors actively seek differentiated and diversified opportunities. Capital formation remains robust, with active portfolio rebalancing driven by preferences for modern investment vehicles over traditional ones. This transformation signals a structural shift in the way wealth is being created, mobilised and deployed across classes.

The pivot towards financial assets is evident in the increased investments across direct equities, mutual funds, portfolio management schemes (PMS) and alternative assets classes. Todays UHNIs and HNIs are also embracing non-traditional avenues, including participation in pre-IPO rounds, to early-

stage investments and Specialised Investment Funds (SIFs). Favourable regulatory developments, such as the accredited investor framework further underpin a more conducive environment for innovation and growth.

Wealth Management: Strategic Growth and Digital Expansion

According to Deloitte Indias report Financial Wealth Management Services in India, the countrys wealth management industry is poised for a transformative leap, with AUM expected to more than double to US$2.3 trillion by FY29, from US$1.1 trillion in FY24. As of FY25, the organised wealth management industry caters to approximately US$0.7 trillion in assets, while another US$0.4 trillion remains self-managed — highlighting substantial headroom for organised players to scale.

Opportunities are expanding for both established players and tech-enabled entrants. Multi product wealth managers, specialising in PMS, AIF, broking services, succession planning, etc., largely cater to the UNHI and HNI market. Meanwhile, technology driven wealth platforms are democratising access, delivering sophisticated investment and advisory services to underpenetrated geographies and client segments. Wealth management service providers who combine product breadth with differentiated, intuitive digital experiences are well positioned to scale faster and capture higher wallet share.

The number of High Networth Individuals (HNIs) and Ultra HNIs (UHNIs) is growing at a 12% CAGR, driven by buoyant equity markets and income growth. Household financial assets are projected to reach US$ 6 trillion by 2028, with managed investments expected to account for 74% of GDP by FY2027. This economic momentum is creating a larger client base for wealth management services.

The rise of WealthTech platforms, including robo-advisors, DIY investing apps and AI-driven tools, has democratised access to wealth management and will drive future growth.

Asset Management: Momentum in Mutual Funds and Beyond

Mutual funds have emerged as a powerful channel for wealth creation, enabling millions of Indians to participate in the countrys economic prosperity. The industrys Average Assets Under Management (AAUM) expanded significantly, growing at 24.5% CAGR to H66.7 trillion as of March 2025 from H22.3 trillion in March 2020. SIPs have become a cornerstone of retail investing, with monthly inflows rising to H259.3 billion in March 2025, growing at a 29.6% CAGR from H91.8 billion in March 2021.

Despite the impressive growth, the industry remains significantly underpenetrated. With just over 54 Mn unique mutual fund investors, covering only 3.8% of Indias population, the opportunity for expansion is immense, especially when compared to mature markets like United States, where the penetration exceeds 50%.

Over time, direct plans and passive funds have risen to prominence, ushering in greater cost efficiency and portfolio diversity. The share of direct plans in industry AAUM increased from 45.4% in March 2021 to 47.0% in March 2025, while passive funds expanded their AAUM share from 9.6% in March 2021 to 16.3% in March 2025. These trends reflect increasing investor maturity and awareness about costs and consistency in returns.

SIP adoption has been catalyzed by the Mutual Fund Sahi Hai campaign, lower ticket size thresholds (H100), seamless digital onboarding and regulatory measures promoting transparency and tighter commission structures. Participation from B30 (beyond top 30) cities has steadily increased over the last six years, enhancing geographic diversity in AUM contributions.

Significant growth potential

Digital transformation has fundamentally reshaped investor access and engagement. As per AMFI-PWC report, approximately 60% of mutual fund transactions, accounting for approximately 21% of transaction value, are now conducted digitally, compared to 45% of transactions accounting for merely 1% of transaction value in FY2013.

This significant shift underscores the potential for further digital led expansion.

Going forward, the path from financial inclusion to financial empowerment will be defined by how the industry players transform investor journey. Emphasis on frictionless onboarding, hyperlocal engagement, inclusive product offerings across investor categories and tech-enabled advisory will be critical in achieving deeper market penetration. Delivering accessible, low-cost solutions will be pivotal in strengthening the industrys role in enhancing individual financial well-being.

In FY25, Indias asset and wealth management industries entered a pivotal growth phase, driven by structural tailwinds and evolving investor aspirations. As affluence deepens, digital capabilities strengthen and regulatory frameworks evolve, India is poised to emerge as one of the most dynamic and influential markets for financial asset growth, globally.

HNIs & UHNIs, Tier 2 & 3 Cities and Technology: Shaping Indias Wealth Management

India is undergoing a wealth transformation, reshaping its financial landscape. The rapid rise of UHNIs and HNIs, emerging wealth hubs in tier-2 and tier-3 cities, coupled with the impact of advanced technologies and digitisation, are expanding the countrys economic diversity.

Emerging wealth hubs in tier 2, 3 and beyond cities are witnessing a surge in affluent individu?is. Entrepreneurial growth across sectors like technology, manufacturing, healthcare, logistics and real est?te, combined with digitisation and the democratisation of business opportunities, has unleashed new pockets of prosperity beyond traditional urban centers.

The profile of Indias wealthy is also evolving. First- generation entrepreneurs, new-age professionals and second- and third-generation family business leaders from non-metro regions are increasingly contributing to the growing pool of affluent individuals. The rise of technology adoption, robust startup ecosystems and the rapid proliferation of access to financial services, are further accelerating this trend.

HNIs & UHNIs segments: Expanding Influence on Wealth Management

A growing population of affluent HNIs are investing actively in capital markets, moving beyond traditional investments like real estate and gold. This surge reflects a structural shift in investment behaviours, with affluent Indians increasingly demanding sophisticated wealth management solutions, diversified portfolios and global investment strategies.

For the wealth management industry, this demographic and geographic broadening opens up a transformative opportunity. Firms that offer hyper-personalised advisory, robust digital platforms, alternative investment products and cross-border investment avenues, are best positioned to capture this expanding market. The ability to reach, engage and serve the evolving needs of UHNIs and HNIs from emerging wealth centers, will be a key differentiator in the years ahead.

As Indias economic ascent continues, the decentralisation of wealth creation, signals not just growth in numbers, but a fundamental reconfiguration of where and how affluence is generated, managed and multiplied across the country.

Tier 2 & Tier 3 Cities: The Emerging Hubs For Financial Services

Indias Tier 2 and Tier 3 cities are fast emerging as dynamic engines of economic growth and wealth creation. Increased affluence in these regions is being fuelled by a potent combination of affordable real estate, rapid infrastructural development and enhanced connectivity to major economic corridors. Reflecting this momentum, these cities now account for nearly half of all land acquisitions by developers, signalling a clear strategic pivot towards the next wave of urbanisation and wealth creation.

Moreover, the proliferation of micro, small and medium enterprises (MSMEs) across these regions is driving economic diversification, fostering entrepreneurship and catalyzing new pools of wealth. As disposable incomes rise and business ecosystems mature, Tier 2 and Tier 3 cities are not only becoming vital investment destinations but are also reshaping the countrys consumption and financial inclusion narrative, making them critical focal points for the next phase of Indias economic expansion.

Technology & Digitisation: Revolutionising Investment Access

Technology and digitisation are at the forefront of Indias wealth revolution. The widespread proliferation of digital platforms has democratised access to financial services, empowering investors from smaller cities to actively engage in equity markets and explore diversified investment opportunities. Forward thinking wealth management firms are harnessing advanced analytics, Artificial Intelligence and intuitive digital interfaces to deliver personalised investment advisory, real-time portfolio insights and frictionless transaction experiences. This seamless technological integration is not only deepening client engagement but also enabling firms to scale rapidly and manage increasingly complex and growing client portfolios, with efficiency.

As digital adoption accelerates, technology will continue to be the cornerstone driving inclusivity, agility and innovation across Indias wealth management ecosystem.

Regulatory Framework

In FY25, the Securities and Exchange Board of India (SEBI) introduced a series of regulatory changes aimed at enhancing transparency, protecting investors and fostering market integrity across various financial sectors.

Mutual Fund Lite Regulations: Effective March 16, 2025, SEBI implemented the Mutual Fund Lite regulations to simplify the framework for passively managed funds. Asset management companies are now required to maintain a minimum networth of H350 million and demonstrate profitability in at least three of the previous five years. These criteria aim to simplify regulatory requirements for smaller mutual fund houses or those managing lower AUM, thereby encouraging wider participation, innovation, and competition in the mutual fund industry.

Optional Same-Day Settlement (T+0): Starting January 31, 2025, SEBI expanded the optional T+0 settlement cycle, where select stocks are settled on the same day, to reduce risk and increase liquidity. For investing in these specified scripts, investors will receive their funds faster, accelerating reinvestments while enhancing market efficiency.

ASBA facility for secondary markets: SEBI at its board meeting in September 2024 made it mandatory for Qualified Stock Brokers to offer either UPI block mechanism (ASBA-like service) or 3-in-1 trading facility, in addition to the current mode of trading for the secondary market, effective from February 2025. While it is mandatory for the QSBs to offer this service, it is optional for clients, whether or not to consume the same. Further the facility is made live only for transactions in the cash segment.

Financial Influencers: Stricter Regulations: To combat the rise of unregulated financial advice, SEBI mandated that, by January 2025, regulated entities must cease association with unregistered financial influencers, commonly known as finfluencers. This initiative seeks to protect investors from misleading information and ensure that financial advice comes from qualified professionals.

True to Label: With the ultimate goal to further strengthen investor protection, SEBI implemented True to Label regulations from October 2024. Through this regulation, SEBI ensured that the clients were charged the same fees, that the market infrastructure institutions (MIIs) levied on market intermediaries.

Index derivatives regulations: The other significant regulatory change that came into force during the year was with respect to index derivatives, with a view to arrest the potential systemic risk associated to speculative excesses in the equity derivative market, particularly on expiry days.

The regulator directed the intermediaries to implement the following measures, over November 2024 to February 2025, to strengthen the index derivatives framework:

Rationalisation of weekly Index derivatives products:

Implemented from 20th November, 2024, SEBI rationalised the number of weekly expiry of index derivatives products, offered by exchanges, to only one benchmark index per week. As a result, the weekly derivative contracts for sectoral indices were now shifted to monthly expiry derivative products. Further the regulator also streamlined expiry of all monthly products to the same day for each of the exchanges.

Increase in contract size: From 20th November, 2024, the regulator directed exchanges to change the derivative notional contract value to H1.5-2.0 million from the previous value of H0.5-1.0 million. Further, the lot size for each of the contracts is now pegged to the revised contract value.

Increase in tail risk coverage on the day of options expiry: As an additional measure to cover tail risk, the regulator has imposed an additional 2% of Extreme Loss Margin (ELM) for short options contracts. This would be applicable for all open short option contracts, at the start of the day, as well on short options contracts initiated during the day, on the day of expiry. This measure was also effective from 20th November 2024.

Upfront collection of option premium from option buyers: To avoid any undue intraday leverage coupled with exposure beyond collateral at the client level, SEBI mandated all trading and clearing members to collect options premium upfront from option buyers, effective from 01st February 2025. This move ensures traders fully cover the risk associated with the underlying contract.

Removal of calendar spread treatment on expiry day:

Starting 01st February, 2025, the regulator directed that the benefit of calendar spread would not be available on the day of expiry for contracts, expiring on that day.

Intra-day monitoring of position limits: Prior to 01st April 2025, position limits for index derivatives contracts, as specified by SEBI from time to time, were monitored by Stock Exchanges / Clearing corporations at the end of day. To address any risk emerging from the risk of position created beyond permissible limits on large trading volumes expiry days, the regulator decided to monitor existing position limits on intraday basis by exchanges. For this, Stock Exchanges shall consider minimum 4 position snapshots during the day. While the exchanges will monitor the existing position limits, the regulator has clarified that no penalties will be levied in case of breach of limits, until further notice.

Key Shifts Driving Indian Equities

From Savings to Investments

The Indian household is transitioning from a culture of saving to a culture of investing. According to data from the NSE, net investments by individual investors in the cash market segment have reached H4.5 trillion, over the past five years, with 27.5% of those inflows coming in FY25 alone. This surge in investment has contributed to substantial wealth creation, with household wealth increasing by H40 trillion (US$459.24 billion) during the same period, according to the Economic Survey 2025.

Annual trend of net inflows of individual investors in NSE Cash Market Segment

Source: NSE Market Pulse, April 2025

This shift in investor behaviour, marked by an increasing number of individual investors, greater trading frequency and significant net inflows, has made the Indian market more inclusive and diverse. As of December 2024, individual investors ownership in NSE-listed companies stood at 18.2% (direct ownership of equities and holding through mutual funds), surpassing the share held by Foreign Portfolio Investors (FPIs) for the first time (SEBI, 2024). This highlights the growing significance of domestic capital in the Indian stock market.

India Leads Global IPOs

FY25 was a landmark year for Indias capital markets, with robust fund mobilisation totalling H4.3 trillion through the equity route. Of this, an impressive H4.0 trillion was raised via the primary markets, while H291 billion was mobilised through secondary offerings. A major highlight was the surge in initial public offerings (IPOs), with H1.7 trillion raised and a record-breaking 242 companies getting listed on the NSE (79 on NSE Mainboard and 163 on NSE Emerge), the highest ever in a single year.

The IPO market showcased extraordinary dynamism, recording a 32.1% increase in the number of listings and a 150% surge in average deal size (NSE, 2025), underscoring the rising preference for equity based financing. Globally too, Indias prominence strengthened sharply, with the country accounting for 30% of all global IPO listings in 2024, up from 17% in 2023 (EY Global IPO Trends, 2024). This stellar performance not only highlights Indias deepening capital market ecosystem, but also reaffirms the countrys growing stature as a preferred destination for global and domestic capital alike.

Country-wise no. of IPOs in 2024

Stronger Regulations for Stability

Indias capital markets are experiencing a pivotal transformation, powered by the rising participation of young, digitally-savvy investors. While this democratisation of market access is reshaping the investment landscape, it also introduces new complexities and risks. True to its mandate, the Securities and Exchange Board of India (SEBI) has taken decisive action, strengthening regulatory frameworks to pre-empt potential risks, uphold market discipline and deepen investor trust. As market dynamics evolve, empowering investors through enhanced financial literacy, bolstering investor protection mechanisms and promoting informed decision-making, will be essential. Building a sustainable, inclusive and resilient capital market ecosystem is not just an imperative, but is the foundation for Indias next chapter of financial leadership.

Unprecedented Investor Growth

FY25 was a watershed period for Indias capital markets, propelled by unprecedented wave of investor participation.

A record 41.1 million new demat accounts were opened across brokers in India, an impressive 27.1% of the total demat base as of March 2024. The NSE reported 112.8 million unique investors linked to Permanent Account Numbers (PANs) by March 2025, with 21.2 million new investors added in a single year, the highest ever by the industry. Active client additions correspondingly grew by 20.7% of FY24 base by 8.4 million to 49.2 million during the year.

This growth underscores how technology adoption, forward-looking regulatory initiatives and widespread internet access are breaking down traditional barriers to investing. Indias capital markets are no longer the domain of a few, they are fast becoming a mainstream avenue for wealth creation across every corner of the country.

Market Capitalisation Skyrockets

Over the past decade, Indias market capitalisation on NSE witnessed a phenomenal expansion, soaring from H99.3 trillion in 2015 to over H410.9 trillion in 2025, firmly positioning India among the worlds top equity markets.

This remarkable expansion is not just a reflection of

corporate growth, but it has been a powerful engine of wealth creation for millions of Indian households. Driven by robust economic fundamentals, a thriving entrepreneurial ecosystem and deepening capital markets, the equity culture has expanded well beyond metros into Tier 2 and Tier 3 cities. The rise of SIPs, broader retail participation in IPOs and easier access to digital trading platforms have democratised wealth creation, empowering middle-class investors to become equity stakeholders in Indias growth story. As household savings increasingly shift to financial assets, equities have emerged as a cornerstone of financial security and long-term prosperity for Indias new-age investors. This structural shift underlines the critical role of Indias vibrant equity markets, in driving inclusive economic empowerment.

Retail Investors Take the Lead

As of December 2024, the collective holdings of individual investors closely matched the ownership levels of FPIs (SEBI, 2024). This marks a significant shift, as FPIs have traditionally dominated Indian equities. Despite periodic foreign fund withdrawals, strong domestic inflows have provided market stability and reduced reliance on foreign capital.

FIIs vs DIIs in FY 25

(in C billion)

	FII	Domestic MF
Apr-24	-87	328
May-24	-256	481
Jun-24	266	282
Jul-24	324	251
Aug-24	73	317
Sep-24	577	326
Oct-24	-940	908
Nov-24	-216	356
Dec-24	154	281
Jan-25	-780	551
Feb-25	-346	476
Mar-25	-40	135

The Future of Investing

The rise in investor interest is not a fleeting trend, but a structural shift that will shape the Indian equity market for years to come. As financial literacy improves, along with the rise in per capita income, technology-driven platforms will enhance accessibility thereby expanding the breadth of retail participation in Indias capital markets.

The increasing role of retail investors is set to provide greater resilience to the Indian markets. This transformation in market dynamics positions India as a unique player in the global financial ecosystem, less vulnerable to external capital flows and market shocks.

Looking ahead, the evolution of FinTech will democratise investment opportunities further. Indias expanding FinTech landscape exemplifies how technology can make investing more inclusive and accessible, enabling millions of new investors to join the financial growth story.

Company OverView

Angel One Limited is Indias largest publicly listed retail broking company and a front runner in technology led financial services. As of March 2025, we serve over 31.0 million clients, with nearly 7.6 million active traders on the NSE, making us one of the most trusted and widely used platforms in the country. Our aspiration is to empower a billion Indians by offering personalised, accessible and intuitive financial solutions through advanced technology and data-driven insights.

Our digital first strategy has enabled us to consistently surpass industry benchmarks. In FY25, we garnered 21.4% of all incremental demat accounts in India, taking our share of total demat accounts to 16.1%. This expanding footprint is a testament to our growing relevance across investor cohorts, including first-time participants from Tier 2, 3 and beyond cities. Our retail overall equity turnover market share expanded by 243 bps y-o-y to 19.5% in FY25, further reinforcing our leadership.

We continue to invest in platform innovation, ensuring a seamless, secure and empowering experience for our clients. Our simple and transparent pricing of H20 per order across all segments enhances affordability and accessibility. Backed by a culture of innovation and a commitment to client-centricity, Angel One is playing a pivotal role in driving financial inclusion, market participation and wealth creation across India.

Business Segments

Broking and Depository Operations

Angel One Limited offers a comprehensive suite of services in the broking segment, spanning equity, commodities and currencies, along with depository operations, all seamlessly accessible via our mobile app, web and desktop platforms.

By harnessing AI, ML and data science, we deliver a superior, intuitive digital experience to our clients. Our client centric approach, reflected from our emphasis on continuously refining our products and engagement tools, has led to sustained client satisfaction as seen from consistently improving NPS. FY25 marked a historic milestone in the journey of Angel One as we onboarded a record 9.3 million clients, executed 1.7 billion orders averaging H40.4 trillion of daily turnover, all of these being our lifetime best achievements.

Building on the success of our Super App, we are further enhancing client acquisition, engagement and communication, with advanced data-driven insights.

Further, we have built a robust network of assisted business, significantly bolstering our client acquisition capabilities, while catering to a diverse set of clients.

In addition to providing our broking services on the digitally- enabled platforms, we also offer clients with value added services like research and investment advisory, empowering them with investment recommendations, so that they can take more informed decisions. Further, we also emphasise on continuously priming our clients capabilities through curated educational content. Our commitment to constant innovation positions Angel One, as a leading FinTech powerhouse, redefining financial empowerment in India.

Equity Trading and Support Services

Client Funding

Angel One extends funding of up to 80% of the purchase value in cash delivery segment of equities to clients. Through this service, the Company facilitates clients to better utilise their capital for their investing and trading strategies, while benefitting from capitalising on market opportunities. The maximum margin available for each stock is determined by regulatory guidelines, with the proprietary automated risk management system, that constantly monitors real time mark-to-market risk of funded stocks, squares off exposure to maintain required margins. The robust risk management system sends out real time margin calls basis the margin thresholds, to enable clients replenish any shortfall in margins. With negligible NPAs and low exposure per client, secured by the clients demat holdings, Angel One employs robust risk management practices to mitigate delinquencies. During FY25, the average client funding book amounted to H36.5 billion, grew 128.7% y-o-y.

Third Party Distribution

Angel One offers a comprehensive suite of financial products designed to meet the evolving needs of clients throughout their financial journey. Beyond broking services, we facilitate the distribution of mutual funds, IPOs, credit products, fixed income instruments and bonds. Insurance products are provided through our wholly-owned subsidiary, Angel Financial Advisors Pvt. Ltd. (AFAPL). By integrating a wide range of third party products into our ecosystem, we are deepening client engagement, strengthening relationships and diversifying our revenue streams. The robust scale up in the adoption of these offerings underscores the success of our Super App strategy and highlights our growing presence in clients portfolio.

Mutual Funds

Angel One, through its proprietary ARQ platform, offers comprehensive research and intelligent ratings across a wide range of mutual funds, empowering informed investment decisions. In FY25, we registered nearly

8.0 million unique SIPs with our period ending AUM being at H111 billion. By delivering a simplified investment experience via the Super App, we are driving deeper client engagement and strengthening our position as a trusted financial partner.

Credit Products

FY25 marked Angel Ones strategic entry into the credit ecosystem with the launch of unsecured personal loan distribution, through our digital platform. We established partnerships with six lenders, comprising four NBFCs and two banks, enabling seamless, end-to-end digital journeys for loan origination. These journeys were designed with a client-first approach, prioritising speed, simplicity and transparency. To ensure responsible lending and enhanced product fitment, we invested in building a proprietary risk model that evaluates clients credit health using behavioural, transactional and alternate data. This model empowers us to recommend the right product to the right client while supporting lenders with improved underwriting and better collection efficiency.

While FY25 was foundational, we adopted a cautious and calibrated scale-up approach, focusing on journey optimisation, partner integration and data-led personalisation. We closed the year with cumulative disbursements of H7 billion, demonstrating early traction and client acceptance. This initiative not only deepens our engagement across the client lifecycle but also diversifies our revenue streams, setting the stage for future growth in the credit segment.

Insurance

AFAPL, a wholly-owned subsidiary and an IRDAI registered corporate agent, distributes a range of life and general insurance products. In FY25, the business collected premiums of H1,288 million in the life and non-life insurance space.

IPOs

Angel One provides its clients with details about ongoing and upcoming IPOs, allowing them to view relevant research and apply for IPOs through the platform.

Bonds

Angel One distributes Sovereign Gold Bonds issued periodically by the Reserve Bank of India (RBI) on its digital platforms.

Asset Management

FY25 marked the entry of Angel One into the asset management business through its wholly owned subsidiary, Angel One Asset Management Company Limited, upon receipt of final approval from the regulator, permitting it to launch mutual fund schemes. Angel One Mutual Fund launched three schemes across Index Fund and ETF,

garnering H740 million in AUM from clients residing in over 8,800 pincodes across India. With significant potential for growth in passive investments, we plan to introduce more schemes over time.

Wealth Management

In FY25, Angel One, through its wealth management subsidiaries, took significant strides toward building a full- stack wealth management business by securing six critical regulatory licenses - ARN, PMS, RIA, RA, Domestic AIF and GIFT City FME. These approvals have laid a strong foundation for long-term growth of the business.

Launched under the Ionic Wealth brand, our wealth business gained early traction, onboarding 680+ clients and scaling to an AUM of H37.9 billion within its first year. Backed by seasoned professionals and an omnichannel model of Relationship Managers, web and mobile, the business is focused on the fast-growing HNI and UHNI segments, while laying the groundwork to democratise access for Indias emerging affluent class.

By combining regulatory breadth, digital agility and deep domain expertise, Angel One is poised to reshape the wealth management landscape, and lead the next wave of wealth creation in India.

Performance Review

OverView

Consolidated Financial Statements

A) Results of operations Extract of Profit and Loss Statement

(K in Million)	For the yearended 31 March, 2025	For the yearended 31 March, 2024
Revenue from operations
(a) Interest Income	13,409.52	7,858.83
(b) Fees and Commission Income	38,739.37	34,791.89
(c) Net gain on fair value changes	234.90	66.12
Total Revenue from operations (I)	52,383.79	42,716.84
(d) Other Income (II)	92.90	81.04
Total Income (I+M=IM)	52,476.69	42,797.88
Expenses
(a) Finance Costs	2,948.03	1,359.45
(b) Fees and commission expense	8,246.39	8,107.00
(c) Impairment on financial instruments	24.65	88.61
(d) Employee Benefits Expenses	8,552.00	5,564.62
(e) Depreciation, amortisation and impairment	1,034.21	499.81
(f) Others expenses	15,751.91	12,041.60
Total Expenses (IV)	36,557.19	27,661.09
Profit before tax (III-IV=V)	15,919.50	15,136.79
Tax Expense:
(a) Current Tax	4,090.50	3,760.54
(b) Deferred Tax	108.30	127.73
(c) Taxes for earlier years	(0.11)	(6.76)
Total Income tax expense (VI)	4,198.69	3,881.51
Profit for the year (V-VI=VII)	11,720.81	11,255.28
Other comprehensive income for the year (VIII)	(37.70)	(20.08)
Total comprehensive income for the year (VM+VMI)	11,683.11	11,235.20

Interest Income

Interest income accounted for 25.5% of the Companys Consolidated total income, growing by 70.6% y-o-y to H 13,410 million in FY25 from H7,859 million in FY24. The Companys average client funding book grew by 128.7% y-o-y to approximately H 36.5 billion in FY25 from H 16.0 billion in FY24. Effective November 2024, the Company lowered the rate of interest charged to clients on the client funding book from 18.00% to 14.99%. The interest income from this offering grew by 115.3% y-o-y to H 6.1 billion in FY25 from H 2.8 billion in FY24. The marginally lower growth in interest income was attributable to the reduction of interest rate.

The Companys average deposits with banks increased to H 102.9 billion in FY25 from H 72.9 billion in FY24. During the year interest earned on fixed deposits with banks increased to H 7.3 billion against H 5.0 billion in FY24. Of the H 7.3 billion interest income earned on fixed deposits with banks, about 30% is attributable to our own funds.

Fees and Commission Income Brokerage Income

Gross broking income accounted for 63.0% of the consolidated total income, in FY25, which stood at 68.2% in FY24. Gross broking income increased by 13.3% y-o-y to H 33,043 million in FY25 from H 29,170 million in FY24. This growth was driven by strong client additions, coupled with robust client activity. Higher client activity was witnessed from a 20.7% y-o-y growth in the number of orders to 1.7 billion in FY25 and 21.6% y-o-y growth in overall average daily turnover to approximately H 40.4 trillion. This growth subsumes the muted activity in last five months of the year, led by regulatory changes and softer market conditions.

Depository Income

Depository income comprising of depository transaction charges, pledge-unpledge charges and annual maintenance charges stood at H 2,320 million in FY25, accounting for 4.4% of the consolidated total income. This income grew by 48.2% y-o-y due to robust client activities in cash delivery segment.

Distribution Income

Distribution income contributed 2.0% to the consolidated total income in FY25, growing by 151.2% YoY to H 1,039 million, primarily due to strong IPO market, higher commission income earned from distribution of insurance products and commission earned from distribution of credit and fixed income products on our Super App platform.

Other operating Income Ancillary Transaction Income

During the year, SEBI implemented True-to-Label regulation from October 2024, where it was mandated that clients be charged the same turnover fees that the market infrastructure institutions levied on market intermediaries. As a result, this revenue was fully extinguished from October 2024 onwards, leading to 35.8% y-o-y decline in FY25 to H 2,273 million from H 3,541 million in FY24.

Other operating Income

The Companys other operating income, excluding ancillary transaction income mentioned above, stood at approximately H 64 million in FY25 against over H 102 million in FY24.

Net gain on fair value changes

Net gain on fair value changes stood at H 235 million in FY25. This was primarily on account of income earned on investments in short term fixed income products, as part of the overall treasury operations.

Other Income

The Companys other income increased by 14.6% y-o-y to H 93 million in FY25.

Expenses Finance cost

Finance cost for the Company grew by 116.9% y-o-y to H 2,948 million. Multiple factors attributing to this increase include more than 2-fold growth in client funding book, increase in margin obligation requirements on the back of growth in ADTO and orders. Marginal increase in average cost of borrowings was also a contributor to the increase in finance cost. Fresh equity infusion from the proceeds of QIP in April 2024, the Company managed its working capital requirements more efficiently and cap the growth in finance costs.

Fees and commission expenses

The Company through its Assisted Business has an exclusive network of 9,454 Authorised Persons, registered with NSE (as on 31 March 2025), and over 9,000 mutual fund distributors, with whom it has a revenue sharing arrangement for broking and distribution business incomes, generated from clients acquired and serviced by them. The pay-out to these Authorised Persons remained stable year- on-year with a marginal increase of 1.7% over the previous year to H 8,246 million in FY25. Growing adoption of f?at fee brokerage amongst clients under the Assisted Business, is a driving factor for this marginal increase.

Impairment on financial instruments

The costs for impairment on financial instruments arising out of unrealisable dues from clients and provisioning for estimated credit loss, decreased by 72.2% y-o-y to H 25 million in FY25. The DIY digital model and significant improvements in the products, along-with intensified efforts on the risk-management and regulatory fronts has significantly reduced this exposure to 0.05% of the gross total income for FY25.

Employee benefits expenses

The Companys employee benefits expenses, excluding costs associated with grant of stock options, increased by 52.1% over the previous year, to H 7,496 million in FY25. Net additions of 9.9% to the base, primarily to fill in the critical gaps amongst the middle and senior management, for some of the new businesses and core functions along with annual increments and lower variable pay were the dominating factors.

The cost of stock options granted to employees grew by 65.9% y-o-y to H 1,056 million in FY25, with almost all grants being in the nature of RSUs further amplified by the higher stock price at the grant date. In absolute terms, 1,581,361 of RSUs were granted under Angel Broking Long Term Incetive Plan 2021, whilst 80,581,794 options were granted under the Angel One Wealth Long Term Incetive Plan 2024.

Depreciation and amortisation expense

Depreciation and amortisation expense increased to H 1,034 million in FY25, as the Company capitalised investments in augmenting its technology infrastructure and enhancements carried out at the data center and disaster recovery site.

Other operating expense

Gross client acquisitions and orders executed on the platform are the main cost drivers for movement in the other operating expenses driven by advertisement and publicity and software connectivity expenses, which increased by 30.8% over the previous year to H 15,752 million in FY25 on the back of 9.3 million new clients acquired and 1,700 million orders executed in FY25 as compared to 8.8 million and 1,409 million in FY24 respectively.

The spends on advertisement & publicity grew to H 8,907 million, which includes H 1,373 million of spends towards Indian Premier League sponsorship and associated advertisement spends, whilst software connectivity expenses increased by 83.1% y-o-y to H 4,005 million.

Higher client activity in the cash segment led to corresponding rise in outflow towards demat charges to the depository, which increased by 45.8% y-o-y to H 486 million in FY25. During the year, the Companys spend on legal and professional charges increased by 69.4% y-o-y to H 715 million. With growing profit pool, the spend on CSR activities increased to H 240 million, higher by 48.6%, over the previous year.

Profit After Tax

The year witnessed mixed outcomes with an all time high H1 FY25 performance, driven by strong growth in client activity and market buoyancy on the back of positive outcome of the general elections. However, H2 FY25 was a contrast with depression in income led by implementation of the True-to-Label and Index derivatives regulations coupled with softer market sentiments. Despite this, we continued to invest in growth, reporting our highest gross client acquisitions and in expanding our talent pool for both existing and new businesses. The resultant full year operating profit margin contracted by 584 bps y-o-y to 41.1% in FY25, culminating into a 4.1% y-o-y growth in the Companys profit after tax to H 11,721 million in FY25.

B) Balance Sheet position

Particulars (K in MiNion)	As on 31 March 2025	As on 31 March 2024
ASSETS
Financial Assets
(a) Cash and cash equivalents	7,592.19	10,429.85
(b) Bank balance other than cash and cash equivalents	1,10,451.97	88,013.09
(c) Trade receivables	2,995.91	4,869.47
(d) Loans	36,987.75	14,841.23
(e) Investments	2,015.86	0.00
(f) Other financial assets	1,984.96	8,509.59
Non-financial assets
(a) Current tax assets (Net)	85.11	72.75
(b) Investment property	31.62	32.20
(c) Property, plant, and equipment	4,204.27	3,507.31
(d) Right of use assets	299.81	55.54
(e) Capital work-in-progress	-	-
(f) Intangible assets under development	38.66	6.03
(g) Intangible assets	455.32	492.70
(h) Other non-financial assets	1,742.70	1,707.57
Total Assets	1,68,886.13	1,32,537.33
LIABILITIES AND EQUITY
LIABILITIES
Financial liabilities
(a) Trade payables
(i) total outstanding dues of micro-enterprises and small enterprises	0.64	45.98
(ii) total outstanding dues of creditors other than micro-enterprises and small enterprises	73,176.51	71,923.82
(b) Debt securities	8,743.25	1,330.56
(c) Borrowings (other than debt securities)	25,085.05	24,022.83
(d) Lease Liabilities	309.07	57.83
(e) Other financial liabilities	4,048.24	4,005.35

 

Particulars (K in Million)	As on 31 March 2025	As on 31 March 2024
Non-Financial liabilities
(a) Current tax liabilities (Net)	0.03	1.92
(b) Provisions	392.69	225.88
(c) Deferred tax liabilities (Net)	255.71	160.10
(d) Other non-financial liabilities	483.92	377.03
EQUITY
(a) Equity share capital	902.94	840.08
(b) Other Equity	55,311.04	29,545.95
(c) Non-controlling interest	177.04	-
Total Liabilities and Equity	1,68,886.13	1,32,537.33

The Companys balance sheet expanded to H 168.9 billion as on 31st March 2025 from H 132.5 billion as on 31st March

2024. Cash, cash equivalents and bank balance grew by 19.9% to H 118.0 billion as on 31st March 2025, from H 98.4 billion as on 31st March 2024, on account of increase in client balances and corresponding margins placed with the exchanges.

Improved client activity in the cash delivery segment, led to a 117.1% growth in the period ending client funding book, comprising of margin trading funding and interest bearing trade receivable balances, to H 38.6 billion as on 31st March

2025, as against H 17.8 billion as on 31st March 2024.

Investments of H 2.0 billion comprises of monies kept in liquid funds by the Companys subsidiaries as on the balance sheet date. Deposits as security with stock exchanges decreased to H 1.5 billion as on 31st March 2025 as against H 8.1 billion as on 31st March 2024.

During the year, the Company continued its investments in augmenting its technology infrastructure as it also enhanced the data center and disaster recovery site. This resulted in 19.9% y-o-y growth of assets to H 4.2 billion, as on 31 March 2025.

The increase in other non-financial assets to H 1.7 billion was due to higher prepaid expenses and advances to vendors, offset by lower balances with government authorities.

Financial and Non-Financial liabilities of the Company in aggregate grew by 10.1% to H 112.5 billion as on 31st March 2025 from H 102.2 billion as on 31st March 2024. Trade payables, which represent the ledger balance of clients funds kept with the Company as margins, to execute their future trades, grew by 1.7% to approximately H 73.2 billion as on 31st March 2025.

Total borrowings increased by 33.4% to H 33.8 billion as on 31st March 2025 against H 25.4 billion as on 31st March 2024. Higher borrowings were partly on account of higher client funding book and towards margin obligations with Clearing Corporation.

Other financial liabilities, including lease liabilities, increased to H 4.4 billion as on 31st March 2025. Increase in lease liabilities and liabilities towards dividend payout were offset by lower payables to vendors and employees.

Increase in the networth of the Company to H 56.4 billion as on 31st March 2025 was contributed by robust growth in retained earnings by H 9.7 billion, share premium by H 15.2 billion and equity-settled share-based payment reserve by H 633.9 million. The Company raised equity through QIP in April 2024. Majority of the increase in share premium was on account of the same, while the balance and increase in equity settled share based payment reserve is attributable towards exercise and grant of employee stock options.

C) Cash Flow position

Particulars (K in Million)	As on 31 March 2025	As on 31 March 2024
Net cash (used in) / generated from operating activities	(18,598.42)	(3,299.04)
Net cash (used in) / generated from investing activities	(3408.22)	(910.48)
Net cash (used in) / generated from financing activities	^^^19,169.05	13,308.76

Cash used in operating activities

Net cash (used in) / generated from operating activities stood at H (18.6) billion for the year ended 31st March 2025 from H (3.3) billion for the year ended 31st March 2024. The Company generated healthy H 20.3 billion of operating profit before working capital changes. During the year, the Company

witnessed increase in its working capital requirements owing to higher trade receivables, client funding book and deployment towards other financial and non-financial assets. Higher bank balance on account of increase in client margin money (trade payables) also impacted working capital change. Higher profit also led to increased tax outgo during the year.

Cash generated from investing activities

Net cash (used in) / generated from investing activities stood at H(3.4) billion for the year ended 31st March 2025 from H (0.9) billion for the year ended 31st March 2024. Net cash used in investing activities was on account of commissioning of disaster recovery data center and investments in augmenting the technology infrastructure, in addition to our net investments in treasury operations made by our subsidiary companies.

Cash generated from financing activities

Net cash (used in) / generated from financing activities stood at H 19.2 billion for the year ended 31st March 2025 from H 13.3 billion for the year ended 31st March 2024. This was primarily due higher net borrowings and proceeds from issue of equity shares on account of QIP and exercise of stock options by eligible employees. Elevated borrowings also led to higher interest outgo H 2.6 billion in FY25 against H 1.1 million in FY24. In FY25, the company paid dividends of H 2.0 billion (for 2 quarters), marginally lower than H 3.2 billion paid in FY24 (for 3 quarters and final dividend).

D) Key Financial Ratios

Particulars	As on 31 March 2025	As on 31 March 2024	Variance (%)
Debt Equity Ratio	0.60 Times	0.83 Times	(27.7%)
Debt service coverage ratio	7.15 Times	12.99 Times	(45.0%)
Interest service coverage ratio	6.44 Times	12.17 Times	(47.1%)
Net worth	H 56,391.02 Million	H 30,386.03 Million	85.6%
Debtors turnover ratio	^^^12.93 Times	7.14 Times	81.1%

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, including:

Debt Equity Ratio

The Companys debt equity ratio decreased to 0.60 times as on 31st March 2025 from 0.83 times as on 31st March 2024, due to increase in Total Equity.

Debt service coverage ratio

The companys debt service coverage ratio decreased to

7.15 times as on 31st March 2025 from 12.99 times as on 31st March 2024, due to increase in quantum of borrowings coupled with lower profitability.

Interest service coverage ratio

The companys interest service coverage ratio decreased to 6.44 times as on 31st March 2025 from 12.17 times as on 31st March 2024, due to higher quantum of borrowings coupled with lower profitability.

Net Worth

The Companys net worth, calculated as sum of equity and other equity, grew to H 56,391.0 million as on 31st March 2025 from H 30,386 million as on 31st March 2024. During the year the company raised H 15 billion through QIP at H 2,555.01 per share of the face value of H 10.00 per share, which led to an increase in equity share capital along with an increase in securities premium. Additionally, the securities premium account increased due to issuance of equity shares to employees upon vesting. The equity settled share-based payment reserve increased on fresh grants of options to eligible employees. Our retained earnings, that forms a part of other equity, increased by the quantum of post tax profit for the year, net of dividends paid.

Debtors turnover ratio

The companys Debtors turnover ratio increased to 12.93 times as on 31st March 2025 from 7.14 times as on 31st March 2024, due to decrease in Trade receivables.

interna! Control Systems and Adequacy

The internal control system is keeping pace with the growth in the core business and the launch of multiple new product offerings. The Company is committed to adhere to the highest standards of financial and operational controls, ensuring best practices, strong governance backed by robust policy and SOP framework. The activities of the executive management have a strong oversight from the board and its committees.

The Companys internal financial controls, as designed and executed, are deemed sufficient. They effectively safeguard assets, prevent and detect frauds and errors, maintain the accuracy and completeness of accounting records, and ensure the timely preparation of dependable financial information. All required logs and audit trail features are enabled, to ensure transparency and controls. Additionally, the statutory auditors have conducted thorough verification of systems and processes, confirming the adequacy and effective operation of the internal financial controls over financial reporting. The Company is recognised as a Qualified Stock Broker which requires it to be more vigilant.