Emkay Global Financial Services Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The global economy remained resilient in 2025 despite headwinds from shifting trade policies, geoeconomic fragmentation, elevated public debt, volatile commodity prices, and divergent monetary policies. Rising geopolitical tensions between the USA and Iran further pushed up oil prices and heightened concerns over gas supply disruptions. Supported by adaptive supply chains, accommodative financial conditions, and sustained private investment, global growth remained stable at 3.40% in 2025, according to the IMF.

Global GDP Growth Outlook

Inflation Trajectory and Monetary Policy

Global inflation has continued to moderate, emerging as a key macroeconomic trend in the current environment. Headline inflation is estimated at 4.10% in 2025 and is projected to ease further to 3.80% in 2026 and 3.40% in 2027, reflecting a gradual alignment towards central bank targets across major economies, albeit at varying speeds across geographies.

While inflationary pressures remain uneven across regions, the broader disinflationary trend has been supported by easing energy prices, moderating demand conditions, and improving supply-side dynamics in several economies. In response, major central banks have adopted calibrated and differentiated monetary policy approaches based on their respective domestic inflation and growth conditions. This divergence in policy trajectories continues to influence global capital flows, currency movements, and broader financial market dynamics.

Regional Growth Dynamics

Global growth is expected to remain uneven across regions during 2025-2027, reflecting differences in fiscal flexibility, structural competitiveness, domestic demand conditions, and external sector exposure. Advanced economies are projected to witness moderate expansion, with growth estimated at 1.80% in 2026 and 1.70% in 2027, indicating a relatively subdued trajectory amid persistent structural constraints and slower productivity growth.

Within advanced economies, the United States is expected to grow by 2.30% in 2026 before moderating to 2.10% in 2027, while the Euro Area is projected to expand by 1.10% and 1.20%, respectively. Other developed markets are also likely to record measured growth as higher borrowing costs; demographic pressures, and soft industrial activity continue to weigh economic momentum.

Emerging Market and Developing Economies (EMDEs) are expected to maintain stronger growth relative to advanced markets, with aggregate output projected to expand by 3.90% in 2026 and 4.20% in 2027. Emerging and Developing Asia is forecast to remain the fastest-growing region globally at 4.90% in 2026 and 4.80% in 2027, led by Indias sustained economic momentum. Meanwhile, Middle East and Central Asia growth is projected to moderate to 1.90% in 2026 before rebounding sharply to 4.60% in 2027, while Sub-Saharan Africa is expected to grow steadily at 4.30% and 4.40%, respectively.

Overall, the outlook for emerging economies remains comparatively robust, supported by domestic demand resilience and structural growth drivers, though global trade dynamics, commodity price volatility, and financial market conditions remain key monitorable.

Region-Wise Real GDP Growth (%)

KEY RISKS AND UNCERTAINTIES

The overall risk balance for the global economy remains tilted to the downside. A confluence of interconnected structural and policy-driven risk factors has the potential to disrupt the current trajectory of measured global stability.

Trade policy volatility remains a key macroeconomic risk. Unresolved issues around tariffs, export controls, and strategic supply chains may disrupt trade flows, create supply bottlenecks, and heighten inflationary pressures.

Fiscal and financial stability concerns persist amid elevated sovereign debt, widening fiscal deficits, and volatile debt markets. Abrupt yield movements or policy missteps could increase macro-financial stress.

Geopolitical tensions continue to cloud the global outlook. Escalating conflict in the Middle East, particularly involving Iran, Israel, and the United States, has heightened concerns around disruption of critical oil supply routes and commodity market volatility. More broadly, any intensification of geopolitical conflicts could impair shipping routes, destabilise supply chains, and adversely impact global trade and production networks.

Outlook

The IMF projects global growth at 3.10% in 2026 and 3.20% in 2027, indicating a stable yet cautious outlook amid persistent structural and geopolitical uncertainties. Sustained fiscal discipline, structural reforms, easing trade tensions, and productivityenhancing investments will be critical to maintaining growth momentum. Additionally, accelerating adoption of AI and related technologies could provide incremental support to medium-term global economic expansion.

World Economic Outlook, April 2026: Global Economy in the Shadow of War

https://www.imf.org/-/media/files/publications/weo/2026/ januarv/enalish/text.pdf

Note: The year referenced in the "Global Economy" section corresponds to the calendar year, whereas all other sections of the report refer to the financial year.

INDIAN ECONOMIC OVERVIEW

India continued to reinforce its standing as the worlds fastest-growing major economy during 2025-26, demonstrating notable resilience amid a volatile global macroeconomic environment characterised by geopolitical tensions, fragmented trade dynamics and elevated financial market uncertainty. Supported by strong domestic fundamentals, prudent policymaking and sustained reform momentum, the Indian economy remained on a structurally robust growth trajectory.

A defining milestone during the year was India holding its position as the sixth-largest economy globally in nominal GDP terms, underscoring the countrys expanding economic influence and strengthening position in the global economic order. This achievement reflects the sustained broad-based expansion of domestic economic activity, increasing formalisation and rising global competitiveness of Indian enterprises.

Performance Highlight

Indias real GDP is estimated to have grown by 7.60% in 2025-26, with Gross Value Added (GVA) rising 7.30%, reaffirming the economys strong momentum. Growth remained underpinned by healthy domestic consumption, sustained infrastructure spending, rising investment activity and continued expansion across the services and industrial sectors.

Private Final Consumption Expenditure (PFCE), which accounted for 61.5% of GDP, expanded by 7%, marking its highest share in over a decade and reflecting resilient consumer demand supported by low inflation, stable employment and increasing real purchasing power. Gross Fixed Capital Formation (GFCF) grew 7.80%, with investment intensity remaining strong at nearly 30% of GDP, driven by continued public capex and revival in private sector investments.

Indias services sector remained the principal driver of economic expansion, recording an estimated growth of 9.10% in 2025-26, while its share in Gross Value Added rose to a historic 56.40%, reflecting sustained strength across financial services, trade, transport, communication and other contactintensive sectors.

Industrial activity also remained resilient, with Industry GVA improving to 6.20%, supported by robust momentum in manufacturing and construction. Notably, manufacturing growth accelerated during the year, with GVA expanding 7.72% in Q1 and further strengthening to 9.13% in Q2 2025-26, signalling a broad-based structural recovery in industrial activity and improving capacity utilisation across sectors.

Macroeconomic Stability and Financial Sector Strength

Indias macroeconomic fundamentals remained robust despite global uncertainties, supported by prudent policy measures and resilient domestic institutions. Foreign exchange reserves stood at USD 700.95 billion as of April 10, 2026, providing comfortable import cover, while the current account deficit remained contained at 1.30% of GDP in Q2 2025-26.

The banking sector strengthened further, with Gross NPAs and Net NPAs of scheduled commercial banks declining to multi-decadal lows of 2.20% and 0.50%, respectively, alongside gross bank credit growth accelerating to 14.50%. Financial inclusion and formalisation also continued to deepen, supported by expanding banking penetration, rising retail investor participation and sustained traction under production-linked incentive schemes across strategic sectors.

Taming Inflation and Strong Monetary Policy

Indias inflation trajectory moderated significantly during 2025-26, creating a supportive macroeconomic backdrop for growth. Average headline CPI inflation eased to 3.40% during FY 2025-26, primarily driven by moderation in food and fuel prices. Lower inflation improved household purchasing power, supported consumption demand and enhanced macroeconomic stability.

In response to easing price pressures, the Reserve Bank of India adopted a calibrated accommodative stance, reducing the policy repo rate to 5.25% during the year. Additionally, the Cash Reserve Ratio (CRR) was lowered to 3%, improving systemic liquidity and supporting credit transmission across the financial system.

Outlook

Indias near-to medium-term growth outlook remains favourable, with economic momentum expected to stay resilient in 2026-27, supported by healthy domestic consumption, sustained investment activity, continued infrastructure spending and improving private sector participation. Accordingly, Indias real GDP growth is projected to remain in the range of 6.80%-7.20% in 2026-27.

Over the longer term, Indias economic trajectory is underpinned by strong structural fundamentals, reform-led policymaking and the Governments Viksit Bharat 2047 vision, which envisages transforming the country into a developed economy with a GDP of USD 30-40 trillion by 2047. Continued progress in infrastructure creation, productivity enhancement, digitalisation and formalisation is expected to support this long-term growth aspiration.

INDIAN EQUITY MARKETS

Indian equity markets experienced a phase of consolidation during 2025-26 following multiple years of strong gains, amid heightened geopolitical tensions, global tariff-related uncertainties, elevated crude oil prices, and sustained foreign institutional investor outflows. Despite these near-term headwinds, Indian markets demonstrated resilience and continued to remain among the better-valued and structurally attractive markets globally.

During the year, the BSE Sensex moderated by 7.10% to close at 71,947, while the NSE Nifty 50 declined 5.10% to 22,331. In contrast, several global peers delivered robust gains, led by Koreas Kospi, which surged 112.70%, and Taiwans TWII, which advanced 57.10%, supported by strong momentum in technology and semiconductor sectors. Japans Nikkei 225 also gained 45.70%, while South Africas JALSH and Singapores STI rose 26.60% and 23.30%, respectively. The correction was primarily driven by external macroeconomic developments, including geopolitical tensions in West Asia, volatility in crude oil prices, and uncertainty arising from tariff-related actions by the United States.

Notwithstanding the temporary correction, Indian equities continued to command a premium over several major global markets, reflecting sustained investor confidence in the countrys long-term growth trajectory. As of 31st March, 2026, the Nifty traded at a trailing P/E multiple of 19.60x, higher than many global peers, underscoring the markets confidence in Indias robust economic fundamentals, earnings potential, and structural growth outlook.

Sectorally, valuation-led corrections were witnessed in select pockets such as Realty, IT, and FMCG, following strong outperformance in previous periods. This moderation has contributed to healthier market valuations and improved the foundation for sustainable future growth.

Retail investor participation remained structurally strong despite a moderation in trading activity during the year. While active participation on the National Stock Exchange witnessed a measured decline of approximately 35-40 Lacs investors (around 7% YoY) following three years of exceptional growth, the overall investor base continued to expand steadily, with nearly 1.30 Crores new investors added during 2025-26. Consequently, the total active client base moderated to approximately 4.55 Crores from 4.90 Crores in the previous year, reflecting normalisation in trading intensity after elevated activity levels seen during the prior bull market phase. This trend indicates the increasing breadth of investor penetration in Indias capital markets, even as trading activity rationalised amid market consolidation and investor participation matured beyond peak trading levels.

Market volatility remained elevated during the year, with India VIX rising to 27.88, reflecting temporary uncertainty in the global investment environment. However, domestic institutional participation and strong retail investor engagement continued to provide structural support to the markets, cushioning the impact of foreign portfolio outflows.

While near-term market movements may remain influenced by global macroeconomic and geopolitical developments, Indias strong economic fundamentals, policy continuity, deepening domestic capital markets, and favourable demographic profile continue to reinforce the longterm attractiveness of Indian equities.

Global Market Performance

Sectoral Performance of Indian Equity Markets

Sectoral performance in 2025-26 reflected a polarised market environment, with investor preference shifting towards domestically linked and policy-supported sectors, while export-oriented and rate-sensitive sectors witnessed correction. PSU Banks emerged as the best-performing sector, delivering returns of 25.70%, followed by Capital Markets (24.50%), Metals (22.50%) and Defence (12.80%), supported by strong earnings momentum, government capex, and continued policy thrust.

Conversely, sectors such as Realty (23.50%), IT (21.20%), FMCG (15%), and India Digital (12%) witnessed notable corrections amid valuation moderation, global demand concerns, and profitbooking after prior-year outperformance. The divergence in sectoral returns underscores the markets rotation towards value-oriented and domestically resilient themes during the fiscal.

FPI and DII Activity

Investor participation in Indian capital markets during 2025-26 reflected divergent trends across foreign and domestic investors amid a dynamic global macroeconomic environment. Foreign Portfolio Investors (FPIs) remained cautious during the year, with net outflows amounting to USD 14.20 billion up to 18th March, 2026, primarily driven by withdrawals from the equity segment amid heightened geopolitical tensions, tariff-related uncertainties, and global risk aversion. Notably, March 2026 alone witnessed net FPI outflows of USD 10.80 billion, reflecting intensified risk-off sentiment.

Despite volatility in portfolio flows, India continued to witness healthy long-term foreign investment interest. Gross inward Foreign Direct Investment (FDI) rose to USD 79.30 billion during April 2025- January 2026, compared to USD 69.20 billion in the corresponding period of the previous year, underscoring sustained global confidence in Indias structural growth prospects. However, net FDI moderated to USD 1.70 billion from USD 2.20 billion, primarily due to higher repatriation and outward investment flows.

Amid foreign portfolio outflows, Domestic Institutional Investors (DIIs) continued to provide robust support to Indian equity markets through sustained inflows from mutual funds, insurance companies, pension funds, and retail SIPs. This strong domestic participation has emerged as a key stabilising force for Indian markets, cushioning volatility arising from foreign selling and reflecting the structural financialisation of household savings.

The continued strength of domestic institutional capital highlights the increasing maturity and resilience of Indias capital markets, with domestic liquidity progressively reducing the markets historical dependence on foreign institutional flows.

Outlook

The outlook for Indian financial markets in 202627 remains cautiously optimistic, supported by strong domestic fundamentals, improving earnings expectations, policy easing, and sustained capital expenditure. Reflecting this confidence, Goldman Sachs upgraded Indian equities to "Overweight" and set a Nifty 50 target of 29,000 by December 2026, with financials, consumer staples, defence, and oil marketing companies expected to lead the next phase of growth.

However, near-term market sentiment may remain influenced by external headwinds, including escalating geopolitical tensions in West Asia, elevated crude oil prices, persistent FII outflows, rupee depreciation, uncertainty around US tariffs, and potential delays in interest rate cuts. Sustained crude prices above USD 100 per barrel could impact Indias inflation, current account, and corporate profitability, particularly across crude-sensitive sectors.

Nevertheless, supported by resilient domestic demand, strong institutional participation, and structural economic drivers, the medium- to longterm outlook for Indian financial markets remains constructive, although near-term volatility is expected to persist until greater clarity emerges on geopolitical developments, oil prices, and capital flows.

Stock market outlook FY27: From crude to currency: Key risks triggers that could influence markets in FY27 I Markets News - Business Standard

INDIAS WEALTH AND ASSET MANAGEMENT INDUSTRY

Indias wealth and asset management industry is undergoing a structural transformation, supported by rising affluence, expanding financialisation of savings, increasing participation in capital markets and the rapid emergence of new-age investors. Strong economic growth, entrepreneurial wealth creation, thriving start-up ecosystems and expanding financial awareness have collectively positioned India among the worlds fastest-growing wealth markets. As wealth becomes increasingly diversified across geographies and generations, demand for sophisticated, technology-enabled and customised wealth management solutions continues to accelerate.

Significant AUM Growth Opportunity

Indias wealth management industry presents a substantial long-term growth opportunity. According to industry estimates, assets under management (AUM) are expected to increase from approximately US$1.1 trillion in FY24 to US$2.3 trillion by FY29, representing an incremental opportunity of nearly US$1.6 trillion. This growth is expected to be driven by favourable macroeconomic trends, rising household incomes, expanding financial awareness and evolving investment preferences across customer segments.

A significant portion of affluent household wealth continues to remain self-managed or informally managed, creating considerable headroom for organised wealth management providers. As investors increasingly seek professional advice on investment planning, tax optimisation, succession planning and alternative asset allocation, the penetration of managed wealth services is expected to deepen significantly.

Expanding Wealth Creation and Affluent Population

India has emerged as one of the most attractive wealth creation markets globally. According to Knight Franks Wealth Report 2025, India ranked fourth globally with nearly 85,700 High-Net-Worth Individuals (HNWIs) and 191 billionaires. The countrys sustained economic growth, increasing foreign investments, vibrant entrepreneurial ecosystem and expanding participation in capital markets have contributed significantly to the growth of affluent households.

The rise in wealth creation is creating a larger addressable market for wealth managers, private banks and advisory firms, driving demand across investment advisory, portfolio management, estate planning and alternative investment products.

Emerging Opportunities Beyond Metropolitan Markets

The next phase of industry growth is expected to originate from Beyond Top-30 (B30) cities. Wealth creation is no longer concentrated solely within metropolitan centres, with rising incomes, entrepreneurship and financial awareness driving investment participation across Tier II and Tier III cities.

Increasing contribution of B30 regions to mutual fund assets and retail deposits highlights a significant untapped opportunity for wealth managers to expand their footprint through digital platforms, hybrid advisory models and customised financial solutions.

Outlook

Indias wealth and asset management industry is entering a period of sustained expansion, supported by rising affluence, increasing financialisation, demographic shifts and technological innovation. As wealth creation broadens across generations and geographies, the industry is expected to witness strong growth in managed assets, deeper client engagement and greater demand for holistic, technology-enabled wealth solutions, reinforcing Indias position as one of the worlds most dynamic wealth management markets.

Wealth creation surges in India as global HNIs embrace new investment themes - The Economic Times

Deloitte India and MEGA, a Bizzdesign company, form a strategic alliance to enhance enterprise transformation for Indian businesses

COMPANY OVERVIEW

Emkay Global Financial Services Limited ("Emkay" / "EGFSL" / "the Company"/" Our Company or "We") is a diversified financial services institution with a distinguished legacy in Indias capital markets ecosystem. Incorporated in 1994-95 as Emkay Share and Stockbrokers Private Limited, the Company has evolved from a niche broking house into a well-diversified and integrated financial services platform. Its listing on Indian stock exchanges in 2005-06, followed by its rebranding as Emkay Global Financial Services Limited in 2007-08, reflects its strategic evolution and expanding market relevance.

Over the years, Emkay has established itself as a trusted partner for informed investing and strategic financial decision-making, underpinned by deep market expertise, enduring client relationships, and a strong execution track record. Today, our Company offers a comprehensive suite of advisory and transactional solutions across Capital Markets, Wealth Management, and Asset Management. Its offerings span institutional equities, investment banking, portfolio management, alternative investment funds, and bespoke wealth management solutions.

With a diversified client base exceeding 40,200, Emkay caters to a broad spectrum of stakeholders across its three business verticals, including foreign institutional investors, domestic mutual funds, banks, insurance companies, private equity firms, corporates, SMEs, family offices, and high-net- worth individuals. Supported by robust research capabilities covering over 230 companies, advanced technology infrastructure, and a pan-India network of 19 branches, the Company continues to strengthen its position as a research-led and client-centric financial services franchise. It has also expanded its international footprint through subsidiaries in Singapore and Dubai, further enhancing its ability to serve global investors and clients.

BUSINESS SEGMENTS

Emkay Global Financial Services Limited operates through three integrated business verticals— Capital Markets, Wealth Management, and Asset Management—providing diversified, research-led financial solutions across the investment lifecycle.

Capital Markets

Our Companys Capital Markets business provides institutional equities and investment banking services, catering to the strategic and capital requirements of corporates and institutional investors. Its institutional equities platform combines differentiated research with execution capabilities across cash and derivatives, while the investment banking franchise offers advisory and capital-raising solutions including IPOs, QIPs, buybacks, open offers, delistings, and private market transactions.

Institutional Equities

Emkay Globals Institutional Equities platform has established itself as a research-led franchise serving institutional investors across domestic and international markets. Backed by a strong presence in key financial centers including India, Singapore, Hong Kong, Taiwan, the United States, the United Kingdom, and Europe, the division caters to a broad institutional clientele comprising mutual funds, insurance companies, banks, foreign portfolio investors, family offices, hedge funds, and alternative investment funds. Its differentiated research capabilities and execution expertise position the business as a preferred partner for informed institutional investing.

Key highlights during 2025-26

• Deepened institutional and corporate engagement through 43 roadshows, 149 corporate and expert client calls and 34 events, conferences and group calls during 2025-26, including marquee forums such as Emkay Confluence 2025

• Strengthened global institutional reach across key financial centers including Singapore, Hong Kong, Taiwan, and the U.S., supported by targeted investor outreach initiatives and expanded international distribution

• Maintained robust execution momentum with TI0 billion equity ADTO, Rs.3,339 billion derivative

ADTO and 85% of broking revenue contributed by institutional clients during 2025-26

• Enhanced trading and execution capabilities through advanced electronic execution infrastructure, algorithmic trading architecture and scalable risk management systems

Research

Emkays Institutional Equities franchise continued to strengthen its research-led positioning during 2025-26 through differentiated market insights, deep sectoral expertise, and a robust analytical framework. The platforms proprietary research model—comprising Perspective Research, Corporate Research, and Alternative Research— enabled the delivery of high-quality, actionable investment intelligence to institutional investors across domestic and global markets, further reinforcing Emkays standing as a trusted research partner.

Key Highlights

• Coverage of ~240 companies across 20+ sectors

• Published 53 industry reports during 2025-26

• Initiated coverage on 52 companies

• Conducted more than 200 investor engagement initiatives, including conferences, roadshows, and client and expert calls

Investment Banking

Emkays Investment Banking business provides end-to-end capital-raising and strategic advisory solutions across public and private markets, with a strong focus on mid-market corporates and growth-oriented enterprises. As a Category I Merchant Banker, the Company advises clients across IPOs, QIPs, preferential issues, private placements, buybacks, open offers, delistings and structured financing mandates. Backed by deep capital markets expertise, integrated institutional distribution, and a client-centric execution model, Emkay enables corporates to efficiently access growth capital and execute strategic transactions across the corporate lifecycle.

Key Highlights during 2025-26

• Executed 73 ECM transactions till date with aggregate deal value of Rs.37,648 Crores, reflecting a strong and proven execution track record

• Completed 5 capital market transactions worth Rs.4,178 crore during the year, demonstrating sustained deal execution momentum

• Maintains robust deal visibility with projected revenue of ~ Rs.100 crore over the next 24 months

• Established strong capabilities across IPOs, QIPs, rights issues, buybacks, open offers and delistings, offering end-to-end public market fundraising solutions

• Supported by integrated institutional equities, research and distribution platform, enabling superior execution and investor placement capabilities

• Demonstrated ability to onboard high-quality long-only investors, including in relatively smaller and differentiated transactions

• Operates a product-agnostic advisory platform spanning public/private markets, ECM advisory, M&A support, structured financing and corporate restructuring

• Backed by senior-led execution, bespoke advisory approach and robust compliance framework, strengthening client trust and transaction execution quality

• Advises clients across diverse sectors, including Financial Services, IT, Chemicals, Consumer, Pharma, Infrastructure and Industrials

Asset Management

Emkay Investment Managers Limited (EIML) is the asset management arm of Emkay Global Financial Services Limited, offering research-led investment solutions through Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). Catering to family offices, high-net-worth individuals, corporates, NRIs, trusts, and institutional investors, EIML provides bespoke investment strategies designed to deliver long-term risk-adjusted returns. Backed by deep research capabilities, proprietary investment frameworks and disciplined portfolio construction methodologies, EIML focuses on identifying high-quality businesses with sustainable growth potential across sectors and market capitalisations.

E-QUAL: Proprietary Governance Assessment Framework

A key differentiator in EIMLs investment approach is its in-house developed governance evaluation framework, E-QUAL, which integrates both quantitative metrics and qualitative assessments to screen companies beyond conventional financial analysis. The model is designed to assess management credibility and governance quality, enabling more informed investment decisions and stronger downside risk protection.

The framework analyses companies across three strategic dimensions:

• Quality of leadership and operational stewardship

• Standards of governance, transparency, and ethical conduct

• Alignment of management actions with shareholder wealth creation

By embedding governance analysis into portfolio construction, EIML seeks to minimise exposure to governance-related risks and build resilient, high- conviction portfolios.

PMS PRODUCTS

Emkay New Vitalised India Strategy (ENVI)

A differentiated portfolio designed to capture long-term value from Indias structural economic transformation.

• Invests in businesses aligned with Indias capex and infrastructure upcycle

• Targets beneficiaries of indigenisation and import substitution initiatives

• Focuses on export-oriented and industrial growth-linked opportunities

• Seeks exposure to sectors integral to Indias manufacturing-led expansion

Emkay Indias Golden Decade of Growth

A flexi-cap PMS portfolio designed to capitalise on Indias structural growth opportunities through a concentrated, high-conviction investment approach anchored around five core macro themes:

• Rising Consumption

• Digitalisation and AI

• Energy Transition

• Financialisation of Savings

• Manufacturing Renaissance

Structured as a focused portfolio of 25-30 stocks with flexible allocations benchmarked to the Nifty 500, the offering seeks to capture Indias transformation journey through disciplined, risk-adjusted stock selection.

Emkay Capital Builder

A diversified multi-cap strategy focused on identifying long-term compounders through disciplined stock selection.

• Invests across the top 600 listed companies by market capitalisation

• Targets businesses with sustainable earnings growth and scalable models

• Follows a structured, research-led portfolio construction framework

• Designed for long-term capital appreciation over a 3-5+ year horizon

Absolute returns since inception

Emkay SMID Cap Growth Engine Portfolio

A focused strategy aimed at capturing alpha from emerging small- and mid-cap opportunities.

• Invests in high-growth businesses within the SMID-cap universe

• Targets scalable companies with strong longterm growth visibility

• Backed by disciplined portfolio construction methodology

• Utilises a structured, research-driven stock selection framework

AIF PRODUCTS

Emkay Emerging Stars Fund - Series VII

A Category III AIF focused on high-growth emerging and pre-IPO opportunities that aims to unlock longterm capital appreciation.

• Invests in scalable businesses across emerging sectors

• Targets select pre-IPO opportunities with strong growth potential

• Focuses on businesses with attractive valuation entry points

• Seeks clearly identifiable liquidity and monetisation pathways

Emkay Capital Builder AIF

An open-ended multi-cap AIF strategy designed to generate long-term wealth through disciplined investing.

• Invests across market capitalisations based on risk-reward attractiveness

• Targets businesses with durable competitive advantages and growth visibility

• Employs structured portfolio construction and risk management discipline

• Designed to deliver sustainable long-term capital appreciation

Emkay SMID Cap Growth Engine Fund

An open-ended AIF strategy focused on emerging small- and mid-cap wealth creators.

• Invests in high-conviction SMID-cap opportunities

• Targets businesses with scalable models and superior growth prospects

• Employs disciplined stock selection and portfolio construction

• Structured to generate long-term alpha through active management

Key Highlights during 2025-26

• Assets Under Management (AUM) increased to more than Rs. 1,550 crore in 2025-26, reflecting sustained scale-up across PMS and AIF platforms

• Manages a diversified portfolio of 9 investment strategies comprising of 4 PMS and 5 AIF offerings catering to varied investor needs

• 4 investment strategies outperformed their benchmark during the period, reflecting disciplined investment execution

• Continued to scale fee-earning AUM across multiple research-backed investment strategies focused on long-term wealth creation

• Strengthened international distribution capabilities through commencement of Dubai operations, enhancing access to Middle East- based HNI/UHNI investor pools

Wealth Management

Emkay Wealth provides comprehensive wealth management solutions tailored to ultra-high-net- worth individuals (UHNIs), family offices, trusts, corporate treasuries, and private equity firms. Our philosophy is anchored in a holistic, client-centric approach that begins with rigorous risk profiling and financial goal-setting, forming the foundation for disciplined asset allocation and customised portfolio construction aligned with each clients risk appetite, investment horizon, and long-term objectives.

Our differentiated proposition lies in the seamless integration of personalised advisory with strong processes, research capabilities, and continuous portfolio monitoring. Beyond portfolio advisory, we offer a full suite of services including performance evaluation, timely portfolio rebalancing, real-time Management Information Systems (MIS), and end- to-end transactional support—delivered through a robust infrastructure and an extensive pan-India network of experienced wealth managers and private bankers.

Backed by proprietary research and data-driven insights, our advisory framework combines quantitative rigor with qualitative judgement. This enables us to curate investment opportunities across a diverse spectrum of asset classes and financial instruments. Our advisors work closely with clients to deeply understand their evolving needs, offering tailored strategies spanning wealth preservation, growth, and succession planning.

Our platform integrates both traditional and alternative investment avenues—including equities, fixed income, structured products, and Alternative Investment Funds (AIFs)—allowing us to deliver differentiated solutions in an increasingly dynamic market environment. With rising investor sophistication, we remain focused on constructing portfolios that balance risk and return while staying aligned with long-term financial goals.

Our research team supports clients through regular insights, publications, and market outlooks, enabling informed and timely decision-making. Our approach is guided by five core pillars: robust product curation, consistent client engagement, process-driven asset allocation, technology-enabled delivery, and a strong emphasis on transparency.

Emkay Wealth continues to scale its presence and deepen client relationships. We ended the year with more than 37,500 clients, with assets under advisory and management surpassing Rs.15,400 Crores. Advisory revenues grew by 24% year-on- year to Rs.2,256 lakhs—reflecting the strength of our advisory-led model and sustained client trust.

OPPORTUNITIES

Resilient investor behaviour driving shift towards disciplined, long-term investing

Despite elevated market volatility in March 2026, investor behaviour remained resilient, with a clear shift towards disciplined, long-term investing. This is reflected in record SIP inflows of Rs.32,087 Crores and strong net equity mutual fund inflows of Rs.40,450 Crores during the month. Continued participation during market corrections, particularly in small- cap segments, highlights improving financial awareness, rising risk appetite, and confidence in long-term wealth creation. Strengthening domestic institutional flows also helped offset foreign outflows, reinforcing the structural depth and stability of Indias capital markets.

March MF SIP inflows log all-time high of 32k cr: AMFI - The Times of India

SIPs hit a record high in March: this rime, it is education driving the money, not greed: Feroze Azeez - The Economic

Times

Indias wealth management industry is entering its defining decade

Indias growth trajectory reflects a structural transformation, with the economy projected to expand from ~USD 4 trillion to USD 30 trillion by 2047, creating a multi-decade wealth creation cycle. This shift is already evident, with the HNI population expected to reach ~1.65 million by 2027 and the UHNI segment growing ~50% by 2028, driven by a younger, innovation-led investor base.

Rising affluence and financial sophistication are accelerating the shift from traditional savings to diversified, market-linked investments, including alternatives and global assets. This evolution is increasing the need for structured, advisory-led wealth management solutions, presenting a significant opportunity to scale fee-based offerings and deepen client engagement.

Indias wealth management industry is entering its defining decade

Growing Momentum in Primary Markets

Indias primary market continued to witness strong traction in 2025-26 (up to December 2025), with IPO volumes rising by 20% and funds raised increasing by 10% over the corresponding period of the previous year. A notable trend has been the increasing share of Offer for Sale (OFS) components, reflecting heightened participation by existing shareholders in capital market transactions.

The SME segment has also demonstrated robust growth, with listings increasing to 217 from 190 in the previous year, while capital raised rose from Rs.7,453 Crores to Rs.9,635 Crores. Since inception, over 1,380 companies have been listed on SME platforms, highlighting the deepening participation of emerging enterprises.

Overall, sustained capital-raising activity and expanding SME participation underscore the increasing depth, accessibility, and maturity of Indias capital markets.

Press Release Page I Press Information Bureau

Rapid Expansion of Alternative Investment Landscape

Indias alternatives investment ecosystem has witnessed significant scale-up, with Portfolio Management Services (PMS) and Alternative

Investment Funds (AIFs) together surpassing Rs.23.43 Lacs Crores in assets as of September 2025. The segment has grown at a robust CAGR of 31.24% over the past decade, driven by increasing institutional participation and a marked shift among affluent investors towards high-conviction, strategy-led investment approaches.

The PMS segment has expanded steadily, with assets rising from TI.27 Lacs Crores in September 2015 to Rs.8.37 Lacs Crores in September 2025, reflecting a 10-year CAGR of 20.75%. This growth has been supported by a rising number of SEBI- registered portfolio managers, which now stand at 495, indicating increasing depth and sophistication in the segment.

AIFs have emerged as a key growth driver within the alternatives space, with total commitments surging from Rs.27,484 Crores to TI5.05 lacs Crores over the same period, translating into a strong CAGR of 49.23%. Category II AIFs continue to dominate the landscape, accounting for nearly three-fourths of total commitments, supported by a CAGR of 54.24%. As of November 2025, India hosts 1,699 registered AIFs, reflecting the rapid diversification and maturation of the domestic alternatives ecosystem.

Overall, the sustained expansion of PMS and AIFs underscores the growing preference for differentiated, research-driven investment strategies and highlights the increasing institutionalisation of Indias capital markets.

THREATS

• Increase in Securities Transaction Tax (STT):

The recent revision in STT rates—rising to 0.05% from 0.02% on futures (150% increase) and to 0.15% from 0.10% on options premium (50% increase)— is expected to materially increase transaction costs for market participants. This may lead to reduced trading volumes, particularly in the derivatives segment, impacting brokerage revenues and overall market liquidity.

• Pressure on Retail and High-Frequency Trading Activity:

Elevated transaction costs could discourage active participation from retail investors and high-frequency traders, potentially moderating turnover growth in equity derivatives, which has been a key revenue driver for brokerage firms.

• Heightened Geopolitical Risks:

Escalating geopolitical tensions, including conflicts involving major global economies such as the U.S. and Iran, have increased uncertainty across financial markets. Such developments can trigger volatility, risk aversion, and capital outflows, adversely affecting investment sentiment.

• Impact of Trade Restrictions and Global Fragmentation:

Rising protectionism and trade restrictions may disrupt global capital flows and economic stability, thereby influencing foreign institutional investor (FII) participation in Indian markets.

• Elevated Crude Oil Prices and Energy Supply Risks:

Geopolitical conflicts have contributed to upward pressure on crude oil prices and potential gas supply disruptions. For an oil- import-dependent economy like India, this can lead to inflationary pressures, currency volatility, and tighter monetary conditions—ultimately dampening investment activity.

• Macroeconomic Volatility and Policy Uncertainty:

The combined impact of global tensions, commodity price fluctuations, and regulatory changes can create an uncertain macroeconomic environment, affecting corporate earnings visibility and investor confidence.

RISK MANAGEMENT AND MITIGATION

Risk	Risk Description	Risk Mitigation Strategy
Technology Risk	High transaction volumes, system outages, cybersecurity vulnerabilities, or infrastructure disruptions may affect platform stability and service continuity.	• Maintain scalable cloud-based CRM and trading infrastructure
		• Integrate real-time data flow across business platforms through API architecture
		• Conduct regular technology upgrades and system redundancy checks
		• Implement disaster recovery and business continuity protocols
Competition Risk	Intensifying competition from existing and emerging market participants may impact market share, pricing power, and business growth.	• Differentiate through research-led advisory and execution capabilities
		• Continuously diversify product and service offerings
		• Enhance client engagement and value-added solutions
		• Monitor market trends to adapt business strategy proactively
Regulatory and Compliance Risk	Evolving regulatory requirements and noncompliance with applicable laws may result in penalties, operational restrictions, or reputational damage.	• Maintain dedicated legal and compliance oversight across businesses
		• Continuously update internal policies and control frameworks
		• Conduct periodic audits and compliance reviews
		• Undertake regular employee training and regulatory engagement
Reputation Risk	Adverse publicity, stakeholder dissatisfaction, or service- related issues may negatively affect brand credibility and stakeholder trust.	• Builds a culture of ethics, governance, and accountability
		• Maintain crisis communication and incident response frameworks
		• Engage proactively with clients and stakeholders
		• Monitor reputational indicators and feedback channels regularly
Cybersecurity & Data Privacy Risk	Cyberattacks, data breaches, or unauthorised access may compromise sensitive information, disrupt operations, and impact stakeholder confidence.	• Deploy advanced firewalls, encryption, and multi-factor authentication
		• Conduct periodic vulnerability assessments and penetration testing
		• Maintain dedicated incident response and monitoring systems
		• Undertake regular employee cybersecurity awareness programmes
Talent Acquisition & Retention Risk	Inability to attract, develop, and retain skilled professionals may affect execution capability, innovation, and business continuity.	• Offer competitive compensation and incentive structures
		• Provide structured career development and learning opportunities
		• Foster inclusive, performance-driven workplace culture
		• Implement employee engagement and retention initiatives

Financial Performance ( Rs. in Lacs)

1. Consolidated Balance Sheet

Particulars	As of 31st March, 2026	As of 31st March, 2025
ASSETS
Financial Assets
Cash and cash equivalents	4,749	4,647
Bank balance other than cash and cash equivalents	86,818	49,275
Stock in trade (Securities held for trading)	91	36
Trade receivables	17,207	9,413
Loans	3,944	1,799
Investments	3,797	3,194
Other financial assets	50,166	48,717
Sub-total - Financial Assets	1,66,772	1,17,081
Non-Financial Assets
Current tax assets (net)	1,088	167
Deferred tax assets (net)	797	849
Property, plant and equipment	3,145	3,156
Right of use assets	790	863
Capital work-in-progress	32	26
Intangible assets under development	13	13
Other intangible assets	40	118
Other non-financial assets	1,340	1,063
Sub-total - Non-Financial Assets	7,245	6,255
Total Assets	1,74,017	1,23,336
LIABILITIES AND EQUITY
Liabilities
Financial Liabilities
Trade payables	25,123	20,353
Debt securities	9,174	4,612
Deposits	1,012	1,308
Lease liabilities	859	914
Other financial liabilities	92,991	55,561
Sub-total - Financial Liabilities	1,29,159	82,748
Non-Financial Liabilities
Current tax liabilities (net)	31	133
Provisions	4,001	4,328
Other non-financial liabilities	2,759	5,810
Sub-total - Non-Financial Liabilities	6,791	10,271
Equity
Equity share capital	2,619	2,537
Other equity	35,448	27,780
Sub-total - Equity	38,067	30,317
Total Liabilities and Equity	1,74,017	1,23,336
2. Consolidated Financial Numbers

 

Particulars	2025-26	2024-25	2023-24	2022-23
Revenue	39,629	36,124	31,501	21,548
Earnings before interest, tax, depreciation & amortisation	4,758	7,933	5,712	2,601
Profit before tax	2,119	6,073	4,242	1,255
Profit for the year	1,520	5,683	3,244	1,408
Total assets	174,017	123,336	106,526	73,095
EPS (R)	5.92	22.80	13.16	5.71

 

3. Financial Ratios
Metrics	Standalone	Consolidated	Explanation in Case Change is 25% or More, As Compared to the Previous Year
	31st March, 2026	31st March, 2025	% Change Increase (Decrease)	31st March, 2026	31st March, 2025	% Change Increase (Decrease)
Current ratio	1.17	1.22	-4.10%	1.24	1.30	-4.62%
Debt equity ratio	0.43	0.28	53.57%	0.24	0.15	60.00%	The Companys debt equity ratio increased as compared to previous year due to increase in total borrowing
Net profit margin	3.24%	17.35%	-81.33%	3.84%	15.73%	-75.59%	Net Profit margin decreased due to substantial decrease in profits after tax
Return on net worth	3.84%	24.84%	-84.54%	3.99%	18.75%	-78.72%	Substantial decrease in profits after tax as compared to previous year have contributed for lower return on net worth
Interest coverage ratio	0.90	5.08	-82.28%	1.14	6.13	-81.40%	Interest service coverage ratio decreased due to higher borrowings coupled with lower profitability

INFORMATION TECHNOLOGY

Technology continues to be a key enabler of Emkays growth, enhancing trading efficiency, risk management, client experience, and operational excellence. During FY 2025-26, the Company strengthened its digital infrastructure, advanced automation capabilities, and reinforced cybersecurity frameworks to support a scalable and resilient business model.

1. Trading Ecosystem

Emkays integrated trading ecosystem delivers seamless execution across asset classes through a combination of proprietary and third-party platforms, enabling speed, flexibility, and reliability for institutional and retail clients.

Key capabilities include:

• Omnichannel access through terminals, web, mobile, and APIs

• Algorithmic, DMA, CTCL, and API-based trading solutions

• Real-time market data and advanced execution capabilities

• Client-specific trading algorithms and execution strategies

• Ultra-low latency infrastructure supported by exchange colocation

2. Automated Risk Management

Technology-driven risk controls enable real-time monitoring across the trade lifecycle, ensuring proactive risk management and regulatory compliance.

Key capabilities include:

• Automated pre-trade risk checks and exposure controls

• Real-time monitoring of positions, margins, and MTM exposure

• Automated breach prevention and trade blocking mechanisms

• Advanced surveillance for AML, fraud detection, and compliance monitoring

• Centralised risk dashboards for enhanced visibility and decision-making

3. Infrastructure & Digital Enablement

Emkay continued to invest in scalable infrastructure and digital capabilities to support business growth and operational resilience.

Key capabilities include:

• Hyper-converged infrastructure across global-standard data centres

• High-performance servers and enhanced network capabilities

• Digital onboarding and KYC processes

• CRM-enabled client engagement and servicing

• Automated backend processing and institutional connectivity solutions

4. AI & Advanced Analytics

The Company is leveraging AI and analytics to improve research productivity, operational efficiency, and risk oversight while maintaining strong governance standards.

Key capabilities include:

• Evaluating AI-assisted research workflows under a human-in-the-loop model, with analyst validation before publication.

• Data-driven monitoring of trading and portfolio behaviour

• Early identification of concentration and execution risks

• Enhanced decision support through advanced analytics

• Automation-led operational efficiencies

5. Cybersecurity & Digital Resilience

Emkay maintains a robust cybersecurity framework to safeguard client data, trading platforms, and critical business operations.

Key capabilities include:

• 24x7 Security Operations Centre (SOC) monitoring

• Advanced threat detection and response systems

• Firewalls, intrusion detection systems, and network security controls

• Regular security audits and vulnerability assessments

• Secure and resilient infrastructure hosted across global-standard data centres

HUMAN CAPITAL

At Emkay, our people are the driving force behind our growth, innovation, and client-centric approach. We remain committed to fostering a high-performance culture that combines deep industry expertise with fresh perspectives, enabling agility, collaboration, and sustainable value creation. Through focused investments in talent development, employee well-being, diversity, and leadership continuity, we continue to build a future-ready organisation capable of navigating an evolving financial services landscape.

1. Talent Acquisition and Retention

Our talent strategy is focused on attracting, developing, and retaining high-calibre professionals who align with our values and growth ambitions. During FY 2025-26, we strengthened critical business functions through targeted hiring initiatives, leveraging employee referrals, recruitment partners, and digital talent platforms to access diverse talent pools.

With an employee retention rate of 81%, we continued to foster a workplace that supports professional growth, meaningful contributions, and long-term career development, reinforcing organisational stability and employee commitment.

2. Learning and Capability Development

As a knowledge-driven organisation, continuous learning remains central to our people philosophy. Through a blend of digital learning platforms, classroom sessions, and expert-led workshops, we equip employees with the skills needed to succeed in a rapidly evolving business environment.

Key focus areas included:

• AI and digital capability enhancement

• Technical and functional training across business verticals

• Leadership and managerial development programmes

• Regulatory and compliance certifications

• Cybersecurity and operational excellence initiatives

• Employee wellness and personal development sessions

Specialised learning interventions were also conducted for wealth management, research, trading, and leadership teams, strengthening both technical expertise and client-centric capabilities.

3. Employee Engagement and Culture

We continue to cultivate a workplace where employees feel connected, valued, and empowered. Through structured engagement initiatives, feedback mechanisms, cultural celebrations, and wellness programmes, we reinforce a strong sense of belonging across the organisation.

The Employee Satisfaction Survey recorded an overall satisfaction score of 85%, reflecting positive employee sentiment, strong collaboration, and confidence in leadership. Insights from these initiatives continue to guide our efforts to enhance employee experience and workplace culture.

4. Diversity, Equity and Inclusion

Building an inclusive workplace remains a strategic priority. Our people practices are founded on meritocracy, equal opportunity, and respect for individual potential, ensuring that career progression and rewards are based solely on performance and contribution.

During FY 2025-26, women represented 26% of the workforce, reflecting continued progress in strengthening gender diversity across the organisation. Regular POSH awareness programmes and a robust governance framework further support a safe, equitable, and respectful work environment.

5. Performance and Leadership Development

Our performance management framework promotes accountability, transparency, and continuous improvement. Structured goal-setting, periodic reviews, and ongoing feedback ensure alignment between individual aspirations and organisational objectives.

Leadership continuity is supported through a formal succession planning framework, under which high-potential employees are identified, mentored, and provided with development opportunities to prepare them for future leadership responsibilities.

6. Health, Safety and Well-being

Employee well-being remains integral to our people strategy. We continue to invest in initiatives that support physical, mental, and emotional wellness, creating an environment where employees can thrive both professionally and personally.

Key initiatives included:

• Yoga and wellness programmes

• Preventive health check-ups and medical consultations

• Mental well-being and counselling support

• Health and life insurance coverage for employees and their families

• Workplace safety, POSH, and cybersecurity awareness programmes

7. Building a Future-Ready Workforce

As the industry evolves, strengthening future- ready capabilities remains a key priority. Our approach combines targeted upskilling of existing talent with the infusion of young professionals from leading institutions and campuses.

By blending experience with emerging talent and fostering a culture of continuous learning, Emkay is building a resilient, agile, and future- focused workforce capable of supporting the Companys long-term growth aspirations.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

At Emkay, we place strong emphasis on maintaining a robust and well-defined internal control framework that is commensurate with the scale, complexity, and nature of our operations. These systems are designed to ensure operational efficiency, safeguard assets, and uphold the accuracy and reliability of financial reporting.

Our control environment is anchored in clearly articulated policies, standard operating procedures, and a professionally managed governance structure. This is complemented by a comprehensive audit mechanism, continuous risk monitoring processes, and an integrated Management Information System (MIS) that supports timely and informed decision-making.

Our Company periodically reviews and strengthens its internal controls in line with evolving regulatory requirements and industry best practices. Internal audits are conducted on a regular basis to assess the effectiveness of these systems, identify gaps, and recommend corrective actions. The management team actively evaluates audit findings to ensure adherence to established standards and to maintain the integrity of financial records and disclosures.

To further reinforce oversight, independent audit firms are engaged to conduct internal audits. Their observations, along with managements Action Taken Reports (ATRs), are presented before the Audit Committee and the Board for detailed review. The Audit Committee closely monitors the implementation of recommendations, ensuring continuous improvement in control processes and alignment with the Companys governance objectives.

Through this structured and proactive approach, Emkay ensures that its internal control systems remain effective, responsive, and aligned with its commitment to strong corporate governance and transparency.

CAUTIONARY STATEMENT

The statements contained in this Management Discussion and Analysis describing our Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to various factors, including changes in economic conditions, industry demand- supply dynamics, input cost fluctuations, regulatory and taxation changes, competitive intensity, legal proceedings, labour conditions, and other external developments that could affect the Companys business and operating performance.