Bridge Securities Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. Global Economic Outlook:

Global growth is projected at 3.0% in 2025 and 3.1% in 2026, reflecting a modest improvement from the IMFs April 2025 projections. The upward revision is attributed to temporary trade- related demand, improved financial conditions, and fiscal expansion in some major economies. Nevertheless, global growth remains below the historical average, with elevated trade tensions, geopolitical uncertainty, and policy shifts continuing to weigh on the outlook.

Global headline inflation is expected to continue moderating during 2025-26, although the pace of disinflation remains uneven across countries. Inflation in advanced economies is gradually approaching central bank targets, while several emerging and developing economies continue to experience relatively higher price pressures. Persistent services inflation and trade-related costs remain key risks to the inflation outlook.

The global policy priority remains achieving sustained disinflation while preserving financial stability. Central banks are expected to continue focusing on price stability, supported by robust financial sector supervision and close monitoring of systemic risks. Governments should rebuild fiscal buffers through prudent fiscal management while protecting vulnerable households through well-targeted support measures. Structural reforms aimed at improving productivity, strengthening labour markets, enhancing supply-side efficiency, and ensuring fiscal sustainability remain essential for long-term economic resilience.

For emerging market and developing economies (EMDEs), growth is expected to remain relatively resilient but uneven during 2025-26. While several large emerging economies continue to support global growth, many low-income and commodity-importing countries face challenges from tighter global financial conditions, higher debt burdens, weaker external demand, and geopolitical uncertainties. Downside risks remain elevated due to trade fragmentation and volatile capital flows.

B. Overview of the Indian Economy:

Indias GDP is projected to grow by 6.5% in F.Y. 2025-26, supported by resilient domestic demand, robust government capital expenditure, and continued strength in the services sector. Although growth has moderated from the exceptionally high levels of previous years, India continues to remain the fastest-growing major economy in the world.

The economy has demonstrated resilience despite global uncertainties. Strong performance in construction, financial services, trade, agriculture, and a gradual recovery in manufacturing has reinforced confidence in Indias medium-term growth prospects.

The continuity of stable governance, ongoing structural reforms, and sound macroeconomic fundamentals have strengthened investor confidence. In the baseline scenario, Indias economy is expected to grow by around 6.5% in FY 2025-26, while remaining above 6% over the medium term, despite risks arising from global trade tensions, geopolitical developments, and climate- related uncertainties.

Early indicators for FY 2025-26 remain encouraging. Consumer Price Index (CPI) inflation has moderated to around 3-4%, remaining within the Reserve Bank of Indias target range and providing relief to consumers and businesses.

C. Industry structure and development:

India has one of the worlds largest agricultural land resources and diverse agro-climatic conditions, making it a major global producer of spices, pulses, milk, tea, rice, wheat, fruits, vegetables, sugarcane, cotton and oilseeds. Indias foodgrain production reached a record 357.73 million tonnes in 2024-25, while the 2025-26 Third Advance Estimate stands at 376.56 million tonnes, reflecting continued growth in agricultural output. The Governments initial foodgrain target for FY 2025-26 was 362.50 million tonnes, with production supported by favourable weather, improved irrigation and continued policy initiatives.

The agricultural and food-grains trading sector continues to benefit from strong domestic demand and resilient rural consumption. Private final consumption expenditure grew by 7.5% in H1 FY 2025-26 and accounted for 61.5% of GDP. However, the sector remains exposed to commodity- price volatility, climate risks, inflation, input costs, supply-chain disruptions and changes in government policies. Going forward, consistent policies, improved storage and logistics infrastructure, efficient market mechanisms and greater value addition will be important for sustaining growth and strengthening Indias position in global agricultural markets.

D. Opportunities and Threats:

Opportunities:

> Rising population, Urbanisation and changing consumption patterns are expected to sustain demand for agricultural products and high-quality farm inputs.

> Increasing climate variability, changing crop requirements and the growth of food processing are creating opportunities for improved, high-yielding and climate-resilient seed varieties.

> Adoption of precision farming, farm Mechanisation, digital platforms and Agri-tech solutions is improving farm productivity and increasing awareness of quality agricultural inputs.

> Government initiatives, subsidies, crop insurance, irrigation programmes and schemes supporting agricultural infrastructure are creating favourable conditions for investment and growth in the agriculture sector.

> Expansion of the food-processing and organised retail sectors is creating greater demand for consistent-quality agricultural produce and strengthening opportunities across the farm-to-market value chain.

Threats:

> Agriculture remains highly dependent on rainfall, temperature and other climatic conditions. Irregular monsoons, droughts, floods and extreme weather events can significantly affect crop yields, quality and prices.

> Fluctuations in commodity prices, input costs, transportation expenses and market demand can adversely affect margins and profitability in the agricultural trading business.

> Changes in export-import restrictions, minimum support prices, procurement policies, taxation and other agricultural regulations may impact market conditions and business operations.

> Changes in export-import restrictions, minimum support prices, procurement policies, taxation and other agricultural regulations may impact market conditions and business operations.

> The presence of numerous organised and unorganised players in agricultural trading and related businesses can increase competition and put pressure on pricing and profit margins.

E. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e. Commission from Agriculture activities. The Turnover of the Company for the Financial Year 2025-26 is Rs. 215.10 Lakhs.

F. Future Outlook:

The Company presents the analysis of the Company for the year 2025-26 & its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic & other developments, both in India and abroad.

G. Risks and concerns:

Risk management is an essential component of the Companys overall business strategy and is integrated into its day-to-day operations and decision-making processes. The Companys senior management periodically reviews key business risks, assesses their potential impact and ensures that appropriate controls and mitigation measures are in place. The risk management framework focuses on identifying, evaluating and monitoring financial, market, operational, compliance and fraud-related risks. Credit and counterparty risks are managed through defined credit assessment procedures, exposure limits, periodic reviews and appropriate approval mechanisms, while concentration risk is monitored across customers, industries, geographical areas and business segments. Market and price-related risks are monitored to minimize the impact of fluctuations in commodity prices, interest rates, foreign exchange and other market factors. Operational risks are addressed through internal controls, segregation of duties, regular monitoring and corrective measures, with significant risk indicators reviewed by senior management at regular intervals. The Company also maintains appropriate systems and procedures to identify and prevent fraud, misappropriation and other irregularities.

H. Internal control systems and their adequacy:

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

Internal Control Systems are the foundation for ensuring achievement of organizations objectives of operational efficiencies, reliable financial reporting and compliance with laws, regulations & policies. The Company has in place Internal Control Systems commensurate with the nature of its business, size and complexity of its operations. These systems are regularly tested for their effectiveness by Statutory as well as Internal Auditor and were found to be operating effectively during the year. Reports of the Internal Auditor are placed before the Audit Committee on quarterly basis for review. The Audit Committee regularly reviews the reports and discusses the actions taken with the management in addition to reviewing the effectiveness of the internal control systems and monitoring the implementation of audit recommendations. There are adequate checks & balances in place, wherein deviation from the systems laid-out are clearly identified and corrective actions are taken in the respective areas, wherever required.

I. Discussion on financial performance with respect to operational performance:

The financial performance of the Company for the Financial Year 2025-26 is described in the Directors Report of the Company.

J. Material developments in Human Resources / Industrial Relations front including number of people employed:

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

K. Material Financial and Commercial Transactions:

During the year there were no material financial or commercial transactions.

L. Key Financial Ratios:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector specific financial ratios. In this regard, the Company has significant changes in key sector specific financial ratios is described in the Financial Statement along with reason for the variance in this Annual Report.

M. Human Resources:

These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company operations include global and domestic demand supply conditions, Government regulations, tax regimes, economic developments and other factors such as litigation and business relations.

N. Caution Statement:

Statements made in the Management Discussion and Analysis describing the various parts may be "forward looking statement" within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Government. Regulations and amendments in tax laws and other internal and external factors.

Registered Office: 4th Floor B/408, Stellar, Sindhu, Bhavan Road Nr Pakwan Cross Road, Bodakdev, Ahmedabad, Gujarat, India - 380 054.		By the Order of the Board of Bridge Securities Limited
	Sd/-	Sd/-
	Sankekumar Dave	Harshad Amrutlal Panchal
Place: Ahmedabad	Director	Managing Director
Date: 27th August, 2026	DIN:02903456	DIN:03274760