Anupam Finserv Ltd Management Discussions

1. Industry Structure and Developments

The Indian NBFC sector has entered a Golden Age of credit delivery. As of early 2026, the RBIs Financial Stability Report highlights that NBFCs have maintained a robust Capital to Risk-Weighted Assets Ratio (CRAR) of over 25% , showcasing the sectors resilience.

A defining development this year is the full-scale implementation of the Unified Lending Interface (ULI) , which has revolutionized the frictionless credit landscape. This allows Anupam Finserv Ltd to tap into a massive, previously underserved market specifically in the MSME and Personal Loan (PL) segments where credit formalization is accelerating. We are transitioning toward a scale-based regulatory framework that prioritizes digital integrity and consumer protection.

2. Opportunities and Threats

Opportunities: o The MSME & PL Credit Gap: While banks remain cautious with unsecured and semi-secured credit, there is a 25 trillion credit gap in the MSME sector. By leveraging the Account Aggregator (AA) framework , we see a massive opportunity to scale our Personal Loan and MSME books using cash-flow-based lending rather than traditional collateral. o Green Transition: The national push for Net-Zero provides a tailwind for our Solar and EV financing initiatives.

Threats: o Macroeconomic Volatility: Persistent global supply chain shifts have kept domestic inflation sensitive. Any sudden hike in the repo rate could squeeze Net Interest Margins (NIMs) across the industry. o Unsecured Credit Vigilance: The RBI has increased risk weights on certain consumption-based personal loans. We are navigating this by maintaining a strict, data-driven credit filter.

3. Segment-wise/Product-wise Performance

Solar Financing: Our primary growth driver with a Very Good quality book. It continues to provide stable, long-term yields with minimal delinquency. Wholesale Lending: We have successfully scaled our support to other NBFCs, creating a diversified revenue stream and strengthening our position in the financial ecosystem.

MSME & Personal Loans (The Scaling Frontier): Currently, our exposure in these segments is small. However, this is a deliberate start small, scale fast strategy. We are building the technological pipes required to manage these high-volume segments with precision. EV & Green Financing: We are in active discussions for our EV pilot, targeting high-utilization commercial assets.

4. Outlook: The Tech-Enabled Future Managements outlook is focused on Velocity and Quality . Our goal is to transform Anupam Finserv Ltd into a tech-first entity where the loan process from MSME credit assessment to Personal Loan disbursement is largely automated.

By integrating AI-driven risk engines , we expect our nascent MSME and Personal Loan portfolios to become significant contributors to our AUM by the end of the next fiscal. We aim to achieve this growth while maintaining a Net NPA ratio below 1.5% .

5. Risks and Concerns

Credit Risk in Retail: Scaling MSME and Personal Loans brings inherent credit risks. We are mitigating this by shifting from asset-backed to data-backed underwriting. Liquidity Risk: To ensure a steady flow of capital, we have diversified into Non-Convertible Debentures (NCDs) , reducing our over-reliance on bank term loans. Cybersecurity: As we automate, the risk of digital fraud increases. We are investing heavily in a Zero-Trust security architecture.

6. Internal Control Systems

We are overhauling our internal systems to support our evolution. Our controls are designed to ensure:

Automated Compliance: Real-time monitoring of LTV (Loan-to-Value) ratios and exposure limits across MSME and PL portfolios. Data Integrity: Ensuring that financial reporting is seamless and reflects the true health of our growing loan book. Independent Oversight: Regular internal audits to validate the efficacy of our new automated credit-scoring models.

7. Financial/Operational Performance

We are pleased to report that Anupam Finserv Ltd achieved its highest-ever annual revenue in the preceding period.

Stakeholders may please note that we are intentionally incurring higher operational costs to onboard an experienced leadership team and upgrade our tech stack. This investment phase may impact Profit After Tax (PAT) for a few quarters. However, this is a strategic trade-off to ensure the company can scale its MSME and Personal Loan verticals sustainably without a corresponding spike in operating expenses later.

8. Human Resources and Industrial Relations

At Anupam Finserv Ltd, we consider human resource as a valuable element of the Company. We are aggressively expanding our team, bringing in experienced individuals who understand the nuances of risk in a digital-first environment. The Company has appropriate policies in place for recruitment, training, skill development and compensation for its employees and staff.

9. Disclosure of Accounting Treatment

In Preparation of Financial Statements, treatment as prescribed in Industry Accounting Standards (IND As) has been followed which forms part of the Financial Statements and hence no separate disclosure is given here with respect to the same.