Econo Trade India Ltd Management Discussions

The Companies main object is Non-Banking Finance activities. The market for this activity offers high potential for growth. The Company is giving Loan and Inter Corporate Deposit to the corporate client and is operating from Kolkata. There have been a number of causes behind growth of Indian Economy in last couple of years.

Industrial Structure and Developments:

The domestic retail inflation continued to be moderate despite increase in global commodity prices. The Country is having normal monsoon as well which should help in keeping the food prices under control. A good monsoon will also boost the rural economy which in turn will enhance demand of various commodities. In view of lower inflation, RBI has reduced Repo rate. The Companies engaged in the financial sector will benefit from the lower rate of interest. The Companys core business is investment in shares and securities. During the year under review, capital market conditions were not conducive which have been reflected in the profitability of the Company.

Opportunities and Threats:

The Company being a Non-Banking Financial Company is primarily engaged in the business of making investments in shares and securities. On account of stable Government and various financial reforms undertaken by the Government, the Stock Market is expected to remain bullish which is likely to enhance the value of listed share held by the Company.

In a volatile stock market, the Company is exposed to the risk of fluctuation in share prices. This however is not likely to affect the working of the Company as a major part of the investments are held on long term basis and temporary fluctuations of those shares in the stock market do not have much financial implication to the Company.

However, the company gives continuous effort to frequently examine the ups and downs of the market particularly taking into consideration that the Company being a small-size NBFC and there are plenty of hindrances which may hamper its growth.

Segment Wise Performance:

The Company being a Non-Banking Financial Company operates mainly under a single segment viz Investments in Shares and Securities.

Risk and Concern:

The Companys business is very much dependent on Monetary and Financial Policies of the Government and RBI. Any slowdown of the economic growth or volatility in the global as well as domestic financial market could adversely affect the Companys business. The Management has to regularly monitor the changing market conditions. The business strategy needs to be examined and modified properly to meet the transformed situation.

Outlook:

Earnings of the Company depend on the performance of the Companies where the Company has invested funds in equities. With better growth prospects continuing with a stable Government at the Centre who has been taking measures for several financial reforms, the economy is expected to grow faster, offering better environment for the industries to perform better. The Companies where the Company has invested its funds are expected to improve their performance. As a result, the Company hopes to generate higher income in the form of dividend, profit on shares, interest and other income in the current year. In view of this, barring unforeseen circumstances, the Company is expected to do well in the current year. However, the nature of capital market in which the Company operates is not predictable with certainty. Any Slowdown of the economic growth or volatility in global as well as domestic financial market could adversely affect the Companys business.

Details Of Significant Changes in Key Financial Ratios:

In accordance with the applicable provisions of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has reviewed the key financial ratios for the financial year ended 31 March 2026 vis-a-vis the immediately preceding financial year.

A change of 25% or more in a ratio, compared with the immediately preceding financial year, is considered significant for the purpose of this disclosure.

Based on the financial statements of the Company, none of the key financial ratios have undergone a change of 25% or more during FY 2025-26 as compared to FY 2024-25.

The key financial ratios are presented below:

Particulars	FY 2025-26	FY 2024-25	% Change
Current Ratio	N.A.	N.A.	N.A.
Debt-Equity Ratio	0.41	0.52	(20.50%)
Debt Service Coverage Ratio	N.A.	N.A.	N.A.
Return on Equity Ratio	4.64%	5.07%	(8.48%)
Inventory Turnover Ratio	N.A.	N.A.	N.A.
Trade Receivables Turnover Ratio	N.A.	N.A.	N.A.
Trade Payables Turnover Ratio	N.A.	N.A.	N.A.
Net Capital Turnover Ratio	N.A.	N.A.	N.A.
Net Profit Ratio	36.55%	35.03%	4.34%
Return on Capital Employed	10.30%	10.79%	(4.54%)
Interest Coverage Ratio	2.42	2.25	7.56%

Explanation of Key Movements:

Debt-Equity Ratio:

The Debt-Equity Ratio decreased from approximately 0.52 times in FY 2024-25 to 0.41 times in FY 2025-26, representing a reduction of approximately 20.50%. The improvement was primarily attributable to a reduction in borrowings from approximately ^. 2,370.76 lakh to ^. 1,974.37 lakh, together with an increase in shareholders equity from approximately ^. 4,584.88 lakh to ^. 4,803.02 lakh. The movement remains below the 25% threshold prescribed for significant change.

Return on Equity Ratio:

The Return on Equity Ratio decreased marginally from approximately 5.07% to 4.64%. The movement is mainly attributable to a modest reduction in profit after tax from ^. 226.23 lakh in FY 2024-25 to ^. 217.80 lakh in FY 2025- 26, while shareholders equity increased during the year.

Net Profit Ratio:

The Net Profit Ratio improved from approximately 35.03% to 36.55%. The improvement was supported primarily by a reduction in finance costs during the year, which partly offset the decline in total income.

Return on Capital Employed:

Return on Capital Employed moderated marginally during the year, primarily due to the reduction in profit before tax and finance costs relative to the capital employed. The change was not significant within the 25% threshold.

Interest Coverage Ratio:

The Interest Coverage Ratio improved from approximately 2.25 times to 2.42 times. The improvement was principally due to the reduction in finance costs from approximately ^. 244.12 lakh in FY 2024-25 to ^. 204.51 lakh in FY 2025-26, notwithstanding the moderation in operating income.

Conclusion:

On the basis of the above analysis, there has been no change of 25% or more in any of the key financial ratios of the Company during FY 2025-26 as compared to FY 2024-25. Accordingly, no ratio requires disclosure as a significant change under the aforesaid criterion.

The management continues to focus on prudent financial management, optimisation of borrowing costs, efficient deployment of financial assets, maintenance of adequate capital and strengthening of profitability.

Discussion on Financial Performance with respect to Operational Performance:

This section is covered in the Boards Report under the section of Financial Results and Operations.

Material Developments in Human Resources / Industrial Relations front including number of people employed there is no Material Development in Human Resources front. The Company maintains harmonious relationship with its employees. The Company is having 2 persons employed currently.

Cautionary Statement:

Certain statements under "Management Discussion & Analysis" describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statement within the meaning of applicable securities laws and regulations. Although the expectations are based on reasonable assumptions, the actual results could materially differ from those expressed or implied, since the Companys operations are influenced by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

	By order of the Board
Place: Kolkata
Date: 28.08.2026	Shekh Hasina Kasambhai
	Managing Director
	(DIN No: 07733184)