BYLD Capital Finance Ltd Management Discussions

Macroeconomic Overview for FY 2025-26
Global Backdrop

The global economy continued to navigate an uncertain landscape in FY 2025-26, marked by
ongoing geopolitical tensions, elevated tariff-related trade frictions and a shifting rate
environment. Even so, feared recessionary outcomes in major economies did not materialise.
Headline inflation moderated across most advanced economies, several central banks pivoted
to a neutral or easing stance, and labour markets held up. Emerging markets, led by India,
remained the primary contributors to global growth.

- GDP Expansion: India retained its position as the fastest-growing major economy. As
per the Second Advance Estimates released by the National Statistical Office, real GDP
for FY 2025-26 is estimated to grow by approximately 7.6%, ahead of the 7.1% recorded
in FY 2024-25.

- Quarterly Momentum: Growth remained broad-based through the year, with Q1 FY
2025-26 real GDP expanding by 7.8% - a five-quarter high - and Q3 sustaining a
robust 7.8% pace, supported by strong private consumption and continued momentum
in investment activity.

- Private Consumption: Household consumption remained the primary engine of
growth, supported by easing inflation, tax rationalisation and a healthy rural cycle.

- Capital Formation: Gross fixed capital formation strengthened progressively, aided by
government capex, revived private capex intent and buoyant credit to industry.

- FinTech Lending: FinTech NBFCs continued to expand digital credit reach, with strong
disbursals in small-ticket personal and business loans, aiding financial inclusion but
attracting sharper regulatory oversight on unsecured retail exposures.

- Profitability & Asset Quality: Rating agencies expect NBFC profitability to remain
under pressure due to higher funding costs relative to banks and elevated credit costs in
unsecured and microfinance portfolios. Delinquencies in the NBFC-Retail segment are
expected to inch up by 10-30 bps in FY 2026 before stabilising.

- India sustained robust economic growth (-7.6%) amid a challenging global
environment.

- Inflation moderated sharply, opening space for a decisive 125 bps repo rate cut cycle.

- Sovereign rating upgrades from S&P and R&I reinforced global investor confidence.

- The external sector strengthened, with the current account near balance and forex
reserves at record highs.

- NBFC credit growth moderated but remained healthy; funding mix shifted materially
towards capital-market instruments and ECBs, while margin and asset-quality pressures
persisted in unsecured segments.

BYLD Capital Finance Limited (formerly known as Avasara Finance Limited) is a Non-Banking
Financial Company registered with the Reserve Bank of India. During the year under review,
the Company completed its Rights Issue of equity shares aggregating to Rs. 10.00 Crore (issue
period: January 9, 2026 to January 19, 2026), the proceeds of which are being deployed in line
with the objects set out in the Letter of Offer, primarily towards augmentation of long-term
capital for the Companys lending business, investment in the investment advisory business,
general corporate purposes and issue expenses. Utilisation of proceeds is being monitored by an
independent Monitoring Agency and reported quarterly in accordance with SEBI (ICDR)
Regulations, 2018.

The Company is promoted by Jupiter Capital Private Limited and is guided by an experienced
management team and Board of Directors, with deep domain expertise across banking, financial
services and the NBFC sector. The Company continues to invest in strengthening its lending,
compliance and risk-management capabilities.

The Company has followed all the relevant and applicable Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and the applicable RBI directions, while
preparing the Financial Statements for the year ended March 31, 2026.

In accordance with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the details of significant changes (i.e. change of 25% or more as compared to
the immediately previous financial year) in key financial ratios are as under:

Current ratio has moved positively mainly due to deployment of fund raised via right issue in
liquid mutual funds