Billionbrains Garage Ventures Ltd Management Discussions

Indian Economy

The Indian economy in 2025-26 demonstrated steady strength against a global backdrop of trade uncertainty and market swings. The Second Advance Estimates finalised real GDP growth at 7.6% and Gross Value Added at 7.7%, highlighting the durability of a growth model led by domestic demand. Strong agricultural output supported rural incomes, while urban consumption improved due to steady employment and lower inflation.

India continues to remain one of the worlds fastest-growing major economies, supported by resilient domestic demand, strong investment activity, and ongoing structural reforms. The country is expected to maintain its strong growth momentum and may improve its global ranking over the medium term as economic expansion continues.

Private consumption remains a primary driver, aided by lower inflation and higher real incomes. Investments increased with public capital expenditure of Rs. 12.2 lakh crore (as per the Union Budget 2026-27), which enhanced infrastructure and spurred activity in manufacturing, construction, and energy. Government initiatives like Viksit Bharat 2047 promote self-reliance and capacity building despite external pressures.

The outlook for the Indian economy remains positive and stable. For the upcoming FY 2026-27, real GDP is expected to grow between 6.8% and 7.2%. This is expected to be driven by continued government spending on infrastructure, a steady increase in private sector investment, and a strengthening manufacturing base. Additionally, the services sector is expected to maintain its consistent expansion.

The strength of domestic economic fundamentals, supported by policy continuity, infrastructure investment and rising financialisation, continued to provide a favourable backdrop for Indias financial markets. However, global geopolitical developments, trade-related uncertainties and shifts in international capital flows influenced investor sentiment during the year, contributing to periodic volatility across capital market segments.

Industry Overview Indian Capital Market

The Indian capital markets remained resilient during FY 2025-26, supported by the strength of domestic economic fundamentals despite a challenging global environment marked by geopolitical tensions, trade-related uncertainties and fluctuating capital flows. These factors contributed to periods of market volatility and cautious investor sentiment, resulting in a moderation of new users/demat accounts and also in trading turnover and the pace of new investor additions during parts of the year. NSE active client has dropped from 49.2 million in Mar25 to 45.7 million in Mar26. However, the broader market ecosystem continued to strengthen. Sustained domestic participation, active fundraising and an expanding investor base helped support market

activity, while the long-term outlook remains underpinned by rising financialisation of household savings, increasing equity ownership and deeper penetration of capital market products across the country.

Retail participation continued to be a key driver of market development. More than 235 lakh demat accounts were added during the year, taking the total number of demat accounts beyond 22 crore by March 2026. This growth reflects increasing investor awareness, wider adoption of digital investment platforms and growing participation from investors beyond metropolitan centres. Domestic investors continued to play an increasingly important role in market liquidity and price discovery, reducing the markets dependence on foreign capital flows.

Technology and digitalisation continued to reshape the investment landscape. Mobile-first investing platforms, simplified account opening processes, and greater access to financial education have significantly improved market accessibility. The rapid adoption of digital channels has enabled a broader section of the population to participate in equity markets, mutual funds and other investment products, accelerating the formalisation of savings and investments.

Looking ahead, Indias capital markets are expected to benefit from favourable demographic trends, rising household participation in financial assets, continued digital adoption and growing investor awareness. These structural drivers are expected to support the long-term expansion of the investment ecosystem and reinforce Indias position as one of the worlds most dynamic retail-led capital markets.

Indian Personal Loan and Secured Loan Industry

The Indian personal loan and secured loan industry recorded healthy growth during FY 2025-26, supported by improving credit demand, easing interest rates and continued government capital expenditure. According to the Reserve Bank of India (RBI), aggregate bank credit surpassed Rs. 213 lakh crore as of March 2026, providing a favourable environment for retail lending. The personal loan segment remained one of the key contributors to credit growth, expanding by 16.2% during the year, compared with 11.7% in FY 2024-25.

The industrys growth reflects a gradual shift towards secured lending, driven by greater borrower preference for collateral- backed financing and prudent lending practices adopted by financial institutions. The increasing share of vehicle finance and gold loans in new loan originations highlights this changing credit

mix, while lenders continue to maintain a disciplined approach towards portfolio quality and risk management.

Technology continued to play an important role in strengthening the lending ecosystem. The adoption of artificial intelligence (AI), Account Aggregator-based cash flow assessment and digital collateral verification has improved underwriting capabilities, accelerated loan processing and enhanced credit assessment. These digital advancements are supporting wider access to formal credit while enabling lenders to maintain operational efficiency and asset quality.

AMC Ecosystem

The Indian Asset Management Company (AMC) industry has emerged as one of the fastest-growing segments of the financial services sector, driven by increasing financialisation of household savings, rising investor awareness, and sustained regulatory initiatives aimed at enhancing transparency and investor protection.

Digital-first platforms and fintech innovations are democratising access to professional wealth management. The integration of artificial intelligence and machine learning has moved from productivity experiments to a core operating layer for advisory services. AI-augmented advisors are now leveraging data analytics to provide personalised "next-best-action" insights, while automated back-office systems have streamlined reconciliations and exception handling.

Passive investment products, including index funds and Exchange-Traded Funds (ETFs), have also gained substantial traction as low-cost alternatives for market participation. By March 2026, passive fund assets stood at approximately Rs. 14.12 lakh crore, reflecting a growing preference for benchmark-linked investing among both retail and institutional segments. As the AUM-to-GDP ratio in India remains below global averages, the white space for further expansion remains significant, positioning the wealth management and AMC sector as a vital engine for the nations economic stability and capital formation.

Wealth Management Landscape

Indias wealth management industry demonstrated resilience during FY2025-26 despite heightened global uncertainties, geopolitical developments, and periods of domestic equity market volatility. Structural drivers such as rising household

financial savings, increasing financialisation of assets, growing retail participation, and rapid digital adoption continued to support long-term industry growth.

The mutual fund industry, a key pillar of the wealth management ecosystem, closed FY2025-26 with Assets Under Management (AUM) of Rs. 73.73 lakh crore, registering a 12.2% year-on-year increase despite significant market corrections during the latter part of the financial year. The moderation in growth compared to the previous year primarily reflected mark-to-market impacts rather than a slowdown in investor participation.

Retail investor engagement remained robust throughout the year. Systematic Investment Plan (SIP) contributions reached a record monthly high of Rs. 32,087 crore in March 2026, underscoring investors continued preference for disciplined, long-term investing despite volatile market conditions. Equity mutual funds recorded strong net inflows during the year, reflecting sustained confidence in Indias long-term growth prospects.

The emergence of digital -first platforms is playing a pivotal role in democratising access to capital markets. These platforms empower a broader range of investors by providing simplified information and user-friendly tools. This allows individuals to build and manage their portfolios more effectively while benefiting from transparent and accessible financial content.

Company Overview

Billionbrains Garage Ventures Limited, popularly known as Groww, operates as Indias largest retail broking platform by active clients, serving over 16.7 million active users as on March 31, 2026 across 97% of pin codes. Founded in 2016 by Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh, the Bengaluru-headquartered company started as a mutual fund distribution platform before rapidly expanding into comprehensive wealth management.

Groww follows a fully digital direct-to-consumer approach, eliminating traditional intermediaries through an intuitive mobile app and website. This technology-first strategy delivers stocks, futures & options, mutual funds, IPOs, bonds and margin trading facilities to first-time investors across 900+ cities from Tier I metros to rural towns. The platform reaches 80% organic user acquisition through strong brand recall and word-of-mouth referrals.

Indias Leading Digital Investment Platform

Groww commands 28% NSE active client market share with 15.7% retail cash ADTO and strong derivatives presence outpacing traditional brokers as at Quarter ending Mar26. The Company manages total customer assets worth Rs. 2,958 billion. Further, a user-friendly design caters to varying risk appetites from SIPs to F&O trading. Recent IPO listing in November 2025 valued the parent at Rs. 61,736 crore, reflecting investor confidence in a scalable fintech model.

Product Ecosystem

Groww has evolved from a digital-first brokerage platform into a diversified financial services ecosystem offering investment, trading, lending, wealth management, and asset management solutions through an integrated technology-led platform. The Companys product architecture is designed to serve a wide spectrum of users ranging from first-time retail investors to affluent investors seeking sophisticated wealth and investment solutions. Through its scalable digital infrastructure, intuitive user interface, and integrated financial offerings, the Company continues to strengthen customer engagement across multiple financial product categories.

Groww is built to serve the full financial lifecycle covering:

• Platform: Serving customers across their core investing needs.

• Wealth Management (W&Fisdom): Offering evolved products / services to customers graduating into affluent category.

• Asset Management: Providing differentiated and niche products to plug gaps in the industry, based on customer demand.

Platform

Broking Services

The broking business remains the core operating segment of the Company and is focused on enabling seamless participation across capital market products through a self-directed digital

platform. For the year ended March 31, 2026, the company served 13.34 million unique transacting users, who collectively placed approximately 1,855.95 million orders on the platform.

The Company provides access to equities, derivatives, commodities, mutual funds, and IPOs through a fully integrated investment interface supported by technology-enabled execution, analytics, and customer experience tools.

1. Stocks

The equity broking business, provides customers access to trading and investing in equities listed on the NSE and BSE, along with participation in mainboard and SME IPOs.

In Fy 25-26, the stock business demonstrated robust growth, with Average Daily Turnover (ADTO) increasing by 24.9% YoY to Rs. 114,550 million and Active Users rising by 18.8% to 11.96 million. The growth was driven by continued focused on simplifying the investing experience through intuitive product design and advanced execution capabilities. The Company continues to benefit from increasing retail participation in Indian capital markets, particularly among younger investors adopting self- directed investing models.

2. Futures & Options (F&O) and Commodities

The derivatives and commodities segment caters to traders participating in stock, index, and commodity contracts. The Company has continued to strengthen its trader-focused ecosystem through the integration of analytical tools, risk management features, and real-time execution capabilities. The Company continues to witness increasing participation in derivatives trading with Active users increasing 21.4% YoY to 1.7 million and Premium ADTO increasing 48.6% YoY to 116,606 million, supported by growing retail engagement and higher adoption of technology-led trading tools

The platform incorporates "responsible intelligence" features such as anti-nudge mechanisms, pause functionalities, and built-in risk alerts aimed at promoting disciplined trading behaviour. In addition, advanced functionalities, including payoff charts and scalper mode, support high-frequency and strategy-driven traders.

3. Mutual Funds

The mutual fund platform enables users to invest directly across mutual fund schemes offered by Asset Management Companies (AMCs) in India through a zero-commission structure. The platform offers SIP-based investing capabilities supported through UPI Autopay integration, advanced screening tools, comparative fund analytics, and consolidated portfolio tracking functionalities.

Active users grew 19.8% year-on-year to 10.03 million, while SIP inflows increased 37% year-on-year to Rs. 466,241 million, reflecting strong investor confidence. Assets held on the platform surged 38.9% to Rs. 1,569,925 million. The integration of external portfolio monitoring further strengthens the platforms positioning as a centralised wealth tracking ecosystem for retail investors.

Margin Trading Facility (MTF)

The Company offers Margin Trading Facility (MTF) services to customers seeking leverage-based participation in exchange- approved securities. The product is designed to enhance market participation by enabling investors to optimise capital deployment over short-term settlement cycles.

The MTF business entered a phase of rapid expansion with Active users growing 3.25X YoY to 0.13 million and Loan book growing 4.7X to 28,143 million.

Consumer Credit

The Companys consumer credit business, accessible through the Groww Credit platform, provides digitally integrated financing solutions aimed at addressing short-term liquidity and financing requirements of customers. The lending ecosystem combines technology-led underwriting capabilities with paperless onboarding and rapid loan processing infrastructure.

1. Personal Loans

The Company facilitates unsecured personal loans through partnerships with banks and NBFCs while also originating on-balance-sheet loans through Groww Creditserv Technology Private Limited. The underwriting process is supported by AI and machine learning-based risk assessment models alongside account aggregator frameworks that enable real-time cash-flow analysis and credit evaluation.

2. Loans Against Securities (LAS)

The Loans Against Securities (LAS) offering enables customers to unlock liquidity against their existing investment portfolios by pledging mutual funds or equity securities without liquidating long-term holdings. The LAS ecosystem complements the broader investment platform by integrating lending and investing functionalities within a unified customer interface.

During FY26, the company disbursed Rs. 13,347 million of loans through partner institutions and Rs. 13,891 million through own book.

Wealth Management

The Company has strengthened its wealth management capabilities through Finwizard Technology Private Limited acquired in FY 2025-26, which serves financially mature and affluent customers through a hybrid advisory and distribution model, integrating digital accessibility with personalised relationship-led advisory services.

The "W by Groww" mobile application supported by a dedicated team of more than 160 relationship managers providing tailored advisory solutions The wealth management suite includes access to sophisticated investment products such as Alternative Investment Funds (AIFs), Portfolio Management Services (PMS), insurance solutions, and tax filing services. These offerings enable customers to diversify beyond traditional equity and debt products while addressing broader wealth creation, protection, and compliance requirements.

Asset Management

The Company entered the asset management business through the acquisition of Groww Mutual Fund, formerly Indiabulls AMC in May 2023, enabling the Company to expand from a pure distribution-led model to the manufacturing and management of financial products.

The AMC currently manages a portfolio of 30 products comprising 11 active funds and 19 passive funds across equity, debt, commodities, ETFs, and hybrid categories. The product suite includes 14 equity funds, 5 debt funds, 2 commodity funds, 8 ETFs, and one hybrid offering catering to varied investor risk profiles and financial objectives.

Financial Overview

1) Consolidated Statement of Profit & Loss

Revenue from Operations

Revenue from operations increased by 19.04% to Rs. 46,445.79 million in FY 2025-26 from Rs. 39,017.23 million in FY 2024-25, driven by higher client activity across the Companys platform, continued customer acquisition and growth in lending-related income streams.

Fees and commission income remained the largest contributor to revenue, accounting for 78.35% of consolidated total income in FY 2025-26 attributable to Stocks, Equity derivatives and commodities growing by 13.09% to Rs. 37,732.47 million from Rs. 33,362.74 million in FY 2024-25, supported by strong client additions and sustained trading activity across investment products.

Interest income from loans increased during the year, supported by higher disbursement volumes, an improvement in average lending yields in Personal loans and a favourable shift in the loan portfolio mix towards Loan against securities. The growth was further aided by expansion of the average loan book and improved asset quality, resulting in higher interest accruals and income recognition.

Interest income from the Margin Trading Facility (MTF)

emerged as a key growth driver during the year. Interest income from MTF increased by 437.07% to Rs. 2,576.58 million in FY 2025-26 from Rs. 479.75 million in FY 2024-25, primarily on account of significant growth in the margin trading funding, which expanded to Rs. 28,142.62 million from Rs. 6,018.89 million in the previous year.

Internal Control Systems and Their Adequacy

The Company maintains a robust internal control framework designed to safeguard assets and ensure the accurate recording and reporting of financial transactions. The internal financial controls are commensurate with the scale and complexity of our operations and are continuously strengthened in line with business growth and the introduction of new products and services.

Oversight provided by the Board and its Committees ensures effective implementation of governance frameworks, policies and standard operating procedures, supporting strong risk management and fraud prevention. The technology architecture incorporates system driven controls and audit trails, which are regularly reviewed and validated by internal and statutory auditors to ensure their ongoing effectiveness and reliability. During the financial year, the effectiveness of these controls was tested and no material deficiencies were identified.

Cautionary Statement

This Management Discussion and Analysis (MD&A) contain forward-looking statements regarding future financial performance, market conditions, business strategies, growth prospects, and industry trends that reflect managements current expectations, estimates, and projections based on available information and assumptions. These statements involve

known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied, including but not limited to economic slowdowns, regulatory changes, competitive pressures, technological disruptions, geopolitical events, and fluctuations in interest rates, consumer spending patterns, or capital market conditions. Factors such as changes in government policies, market volatility, cybersecurity threats, and shifts in investor sentiment could also impact outcomes. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Investors should carefully consider these risks alongside other information in this annual report when evaluating the Companys prospects.