Emkay Global Financial Services Ltd Management Discussions

The global economy has entered 2024-25 at a critical juncture, grappling with heightened uncertainty and a noticeable slowdown compared to the previous year. The latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF) in April 2025 paints a cautious picture, with global GDP growth now projected at 2.8% - a sharp downgrade from the 3.6% forecast made toin January. This significant the escalation of trade tensions, particularly the imposition of sweeping tariffs by the United States and retaliatory measures by its trading partners.

These trade-related disruptions have triggered a complex and overlapping trilemma: rising tariff barriers, volatile currency movements, and fragmented capital flows.

Together, they have created a challenging environment in which no economy remains untouched. The IMF estimates that, in the absence of these new tariffs, global growth in 2024-25 could have reached 3.2%. A modest recovery is expected in 2025-26, with global GDP growth projected at 3.0%, though risks remain tilted to the downside.

According to the forecast, growth in advanced economies is expected to reach 1.4% in 2024-25. Growth in the United States is expected to slow to 1.8%, whereas growth in the Euro area is pegged at 0.8%. In emerging market and developing economies, growth is expected to slow down to 3.7% in 2024-25 and 3.9% in 2025-26, with significant downgrades for countries affected most by recent trade measures, such as China.

Alongside the growth downgrade, global headline inflation is expected to decline, reaching 4.3% in 2024-25 and 3.6% in 2025-26. These projections reflect notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies, driven by the pass-through effects of tariffs and ongoing supply-side disruptions. Financial markets have responded through sharp fall in dollar index and equity sell-offs with significant softening in bond yields and crude oil prices.

Looking ahead, restoring economic stability and reviving investment will require a decisive shift in policy focus. Priorities include de-escalating trade tensions to reduce uncertainty, implementing structural reforms to address demographic and labour market constraints, and strengthening multilateral cooperation. These actions are critical to steering the global economy toward a more resilient, inclusive, and sustainable growth trajectory.

INDIAN ECONOMY

India is projected to remain the worlds fastest-growing in themajor economy, reaffirming global economic order. According to the IMFs April 2025 WEO, the Indian economy is expected to grow by 6.5% in 2024-25. These figures stand in sharp contrast to the global growth forecast of 2.8% and 3.0% for 2024-25 and 2025-26 respectively, highlighting Indias continued strength amid a weaker international environment.

Note: For India, data and forecasts are presented on a fiscal year basis, with 2024-25 (starting in April 2024) shown in the 2023-24 column. Indias growth projections are 6.2% in 2024-25 and 6.3% in 2025-26 based on calendar year.

(Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025)

Drivers of Domestic Momentum

Several structural and cyclical factors are expected to support Indias economic momentum. Consumption demand remains firm, particularly in rural areas, and is likely to be further strengthened by a recovery in urban consumption, aided by the governments pro-consumption stance - reflected in increased rural allocations, tax relief for the middle class, and targeted subsidy reforms in the Union Budget 2025-26. Investment activity is showing signs of revival, supported by higher fiscal outlay, increased capacity utilisation across industries, and healthier balance sheets of both corporates and banks. While merchandise exports may come under pressure due to global trade uncertainties, resilient services exports - particularly in IT and business services - are expected to provide a buffer and limit the impact on the external sector.

Sectoral Outlook and Growth Forecast

Manufacturing activity gained momentum due to improved domestic demand, lower input costs and a supportive policy environment while services sector growth remained robust. On the supply side, the outlook for agriculture remains optimistic with expectations of a favourable monsoon, while industrial activity is gradually gaining pace. The services sector, a key contributor to GDP, continues to display resilience. Services sector remains the mainstay of the Indian economy, with contribution of around 75% to GVA growth in 2024-25. A notable transformation within Indias services sector has been observed with the growing share of high-skill and high-value services. The services sector maintained its momentum in 2024-25, with an impetus from trade, hotels, transport, communication and broadcasting; financial, real estate and professional services; and public administration, defence and other services. As per the SAE, the services sector grew robustly at 7.5% in 2024-25, on top of 9.2% growth a year ago.

(Source:https://rbidocs.rbi.org.in/rdocs/BulletinPDFs/0 BULL22042025F03F83AE118C4B3B84E662D980C8DE 33.PDF)

Macroeconomic Stability and Monetary Policy Response

Amid strong domestic momentum, Indias macroeconomic fundamentals have remained stable. A notable moderation in retail inflation has contributed to this stability, offering policymakers room to support growth. Retail inflationeased to 4.6% in 2024-25, down from 5.4% in 2023-24 and 6.7% in 2022-23, aided by improved food supply, effective monetary management, and a high base effect.

With inflation remaining within manageable limits and growth showing signs of moderation, the Reserve Bank of Indias Monetary Policy Committee has adopted an accommodative stance. In its latest meeting held from 7^th April to 9^th April, 2025, the committee unanimously voted to reduce the policy repo rate by 25 basis points, bringing it to 6%. It also changed its policy stance from neutral to accommodative. The decision reflects a cautious but growth-supportive approach in view of heightened global uncertainty, aimed at lowering borrowing costs, improving credit flow, and supporting consumption and investment during a period of external volatility.

(Source: https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL 22042025F03F83AE118C4B3B84E662D980C8DE33. PDF)

INDIAN EQUITY MARKETS

In 2024-25, India equity was one of the top outperformers in the region as the country has one of the strongest fundamental growth outlooks amid a slowing global economic environment. India equity advanced 13.3% in 2023-24, only lower than Taiwans 32.8% and Chinas 19.7%, in USD terms, among APAC markets. Solid domestic fundamentals and rising capex growth have been major drivers and attracted global equity investors to add positions.

*Note: For India, data and forecasts are presented on a fiscal year basis, with 2024-25 (starting inApril 2024) (Source:https://www.lseg.com/en/insights/ftse-russell/india-a-structural-growth-story-but-have-valuations-run-ahead)

The year 2024-25 began with a strong rally that took indices to record highs by September 2024 - and ended with a sigh of relief by the fag end of the financial year. The Indian equity markets faced considerable turbulence in the second half of driven by heightened geopolitical tensions and escalating tariff 2024-25,reflecting wars. This challenging backdrop, coupled with persistent foreign portfolio investor (FPI) outflows, weighed heavily on market sentiment.

After a period of relative stability, the benchmark BSE Sensex began to decline in October 2024, as concerns around global paring exposure to Indian equities. The pressure was further exacerbated tradefrictionsintensified by weaker-than-expected corporate earnings for the second quarter. Although there was a brief recovery in late November and early December on the back of favourable global cues, the momentum proved short-lived. A broad-based globalsell-offin early 2025, following a reassessment of the US Federal Reserves monetary policy stance, again pulled Indian equities lower.

(Source:https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF)

The beginning of calendar year 2025 was marked by a continuation of FPI selling, uncertainty over US economic policy, and mixed corporate earnings results for the third quarter. However, sentiment improved in the latter half of March, helped by more supportive global conditions and a modest revival in FPI inflows. Despite this partial recovery, the BSE Sensex registered a decline of 8.2% during H2:2024-25, ending March at 77,415. The broader market witnessed sharper corrections, with the BSE MidCap and BSE SmallCap indices falling by 15.8% and 18.4%, respectively.

(Source:https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULL22042025F03F83AE118C4B3B84E662D980C8DE33.PDF)

Volatility in the market remained moderate through the year. The India Volatility Index (VIX), which reflects short-term expectations of market volatility, averaged 14.5% during H2 2024-25, slightly lower than 14.9% recorded in the first half of the year. However, underlying investor caution remained evident across sectors.

All sectoral indices of the BSE ended the financial year in the red, mirroring the broader weakness. In the derivatives segment, the average daily notional equity derivatives turnover declined in H2 2024-25 compared to H1into a well- 2024-25.

This followed the Securities and Exchange Board of Indias (SEBI) move to introduce tighter regulatory measures on 20^th November, 2024, aimed at strengthening the equity derivatives market framework.

From a capital allocation lens, FPIs remained net sellers during H2 2024-25, Rs 2.2 lakhs crore. In contrast, domestic institutional investors (DIIs) continued to provide steady support, emerging as net buyers to the tune of Rs 3.6 lakhs crore. This divergence in participation reflects the resilience of domestic capital in cushioning external shocks, even as global uncertainties persist.

Outlook

Looking ahead, the Indian equity markets are likely to navigate a cautious but potentially optimistic path in 2025-26. The resilience of domestic institutional investors, who have consistently supported the markets amid global volatility, is expected to remain a key stabilising force. While foreign portfolio investor (FPI) flows turned adverse in the latter half of 2024-25, the partial revival in March 2025 indicates a gradual return of global investors, supported by easing geopolitical tensions and greater clarity. Domestically, the outlook is projected to be shaped by corporate earnings performance, progress on structural reforms, and the direction of fiscal and monetary policy. Stable macroeconomic fundamentals, including sustained GDP growth and moderating inflation, could enhance investor confidence. However, risks remain from persistent global headwinds, including high US bond yields, volatile crude oil prices, and potential disruptions from geopolitical developments.

Sector-specific performance may continue to diverge. Stable-growth sectors such as FMCG and healthcare could attract more investor interest in a volatile environment, while capital goods, energy, and infrastructure-linked segments may benefit from government capex and policy support.

COMPANY OVERVIEW

Global2024-25 marks a significant

Financial Services Limited (‘Emkay or ‘EGFSL or ‘the Company or ‘We) as we complete 30 years of delivering trusted financial solutions and empowering capital market participants. Since our inception in 1994-95 as Emkay Share and Stockbrokers Private Limited, we have evolved from a diversified financial services nichebrokingfirm institution. Our listing on Indian stock exchanges in 2005-06, followed by our rebranding in 2007-08 to Emkay Global

Financial Services Limited, reflects this transformation and our aspiration to grow with the markets we serve.

Over the years, we have built a legacy of performance, agility, and trust-becoming a partner of choice for informedequitiesworth investing and strategic decision-making. Today, Emkay is recognised for its deep-rooted client relationships and strong domain expertise. We serve a broad spectrum of institutional and individual investors, including foreign institutional investors, domestic mutual funds, banks, insurance companies, private equity firms, corporates, SMEs, and high-net-worth individuals.

Our comprehensive suite of services covers the equity, debt, currency and commodities markets. We combine high-quality research, seamless execution and strategic advisory, supported by a strong team of professionals, institutional-grade infrastructure and a commitment to disciplined processes. Our integrated platform allows clients to navigate complexity with confidence and capture opportunities across asset classes.

With a sharp eye on the future and our feet firmly rooted in experience, we continue to push the boundaries of whats possible in financial services. As we look ahead, we remain anchored in our core values of integrity, insight and innovation. With three decades of experience and a forward-looking approach, we are well-positioned to create long-term value for all stakeholders by delivering tailored, high-impact financial solutions in a rapidly evolving landscape.

Business Segments

1. Capital Markets

Our Capital Markets business comprises Institutional

Equities and Investment Banking, offeringan integrated platform that caters to the capital needs of mid-sized and large corporates, while supporting the investment goals of institutional clients.

a. Institutional Equities

Emkay Globals Institutional Equities (IE) division continues to strengthen its position as a trusted partner for informed, research-driven investing. With a wide-reaching presence across major global financial hubs - including Europe, the UK, the US, Hong Kong, Singapore, Taiwan and India

- we serve a distinguished institutional client base comprising mutual funds, insurance companies, banks, foreign portfolio investors (FPIs), family offices, global hedge funds and alternative investment funds (AIFs).

2024-25 was marked by strong momentum in client engagement, corporate access and thought leadership initiatives. Our Institutional Equities team curated and executed several high-impact events and forums, creating platforms for strategic conversations between corporates and institutional investors.

In June 2024, we hosted the Emkay Konnect Channel Check Conference, facilitating rich on-ground insights and interactions. In August, we revived our flagship event, Emkay Confluence

2023-24—a high-impact platform that convened industry leaders, fund managers and corporates to decode Indias evolving economic and market narrative. November featured the 5^th edition of

Emkay FinShift, which has firmly established itself as a marquee forum in our event calendar, attracting robust participation from diverse investor segments.

Indias midcap potential through the Emerging Midcap Stars Conference in December 2024

- an initiative aimed at uncovering compelling investment stories in the mid-sized corporate universe.

A key highlight during the year was our maiden

US Conference in March 2025, marking a . significant

The event spanned key cities including New

York, Boston, Chicago, Salt Lake City and Miami.

These forums facilitated impactful discussions, built global investor confidence in Indian equities and strengthened our cross-border engagement. In addition to these marquee events, our IE team facilitated 46 roadshows, conducted 238 expert/ client calls and hosted 37 group calls and curated events, all designed to provide clients with timely access to management insights, sectoral perspectives and macroeconomic commentary.

Our focus on differentiated research, high-quality corporate access and global investor engagement continues to reinforce our commitment to delivering value-added equity solutions and acting as a trusted bridge between companies and capital.

Research

At Emkay, research is not just a function - its a strategic pillar of our client offering. Our

Institutional Research team is widely recognised for delivering differentiated, data-backed insights that empower investors to make informed, forward-looking decisions. With strong emphasis on rigour and relevance, our research framework combines macroeconomic foresight with deep-dive sector and company-level analysis.

We believe great research goes beyond reporting - it anticipates trends, challenges consensus, and sparks intelligent action. Our proprietary research methodology, developed over decades, enables us to offer institutional-grade due diligence and real-time intelligence across market cycles. This integrated approach helps clients navigate complex environments with clarity and confidence.

As of 31^st March, 2025, our research coverage spans over 200 listed companies, including 37 constituents of the Nifty 50 and 28 from the BSE Sensex - reflecting the breadth and depth of our insights. Our universe is curated to identify not just todays leaders but tomorrows outperformers, aiding optimal capital allocation across strategies. The strength of our research lies in the minds behind it. Our team of highly experienced analysts and associates brings deep sectoral expertise, strong forecasting capabilities and disciplined valuation models. Their insights form the bedrock of our institutional research, enabling clients to stay ahead of the curve.

Through a blend of thematic deep-dives, macro pulse reports, sector trackers and earnings playbooks, our Research vertical continues to be a trusted partner for both domestic and global investors.

b. Investment Banking

Emkay Investment Banking is a mid-market-focused, product-agnostic platform offering strategic capital-raising and advisory solutions that are precisely tailored to meet our clients business objectives. We assist companies in securing growth capital from both public and private markets and provide end-to-end advisory across Equity Capital Markets (ECM) activities, including IPOs, Qualified Institutional Placements (QIPs), buybacks, open offers, and delisting.

Our strength lies in our deep-rooted understanding of the mid-market corporate landscape and our proven ability to attract high-quality investors, even in situations with limited institutional interest.

With a client-first approach, our senior leadership remains hands-on throughout the process, ensuring seamless execution and sustained engagement across the entire transaction lifecycle. Our teams strong regulatory interface, established stakeholder relationships, and strategic foresight empower us to offer bespoke solutions that consistently deliver value across various sectors. We pride ourselves on our ability to navigate complex transactions and unlock opportunities, driving long-term success for our clients.

Key Highlights of 2024-25

• Acted as Merchant Banker for the IPO of Awfis Space Solutions Limited worth Rs 598.93 crore

Sole Advisor for the preferential issue of Man Industries Limited totalling Rs 170 crore

Sole Banker to the Buyback Offer for eClerx, valued at Rs 385 crore

Sole Merchant Banker for the QIP of Pearl Global worth Rs 149.5 crore

Merchant Banker for the Offer for Sale of

Route Mobile, valued at Rs 630 crore

• Merchant Banker to the QIP of Punjab National Bank, totalling Rs 5,000 crore

• Merchant Banker to the QIP of Bank of Maharashtra, totalling Rs 3,500 crore

Merchant Banker to the QIP of Senco Gold

Limited, valued at Rs 459 crore

• Merchant Banker to the QIP of Epigral Limited, valued at Rs 333.05 crore

• Merchant Banker to the QIP of Indian Overseas Bank, valued at Rs 1,436.90 crore

Merchant Banker to the QIP of UCO Bank, totalling Rs 2,000 crore

• Merchant Banker to the QIP of Central Bank of India, totalling Rs 1,500 crore

• Executed multiple block transactions aggregating Rs 2,174 crore during the year These achievements underscore Emkays growing presence and execution strength in the mid-market segment. The consistent success of our transactions and strong investor response further cement our reputation as a trusted partner for capital market solutions.

2. Asset Management

Emkay Investment Managers Limited (EIML), the asset management arm of Emkay Global, continues to deliver distinctive, research-led portfolio solutions tailored to long-term wealth creation. We cater to a diverse client base - including family offices, high-net-worth individuals (HNIs), corporates, NRIs, and trusts

- offering both Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs).

Our investment philosophy is anchored in deep fundamental research, disciplined stock selection, and a focus on governance and risk management. Each strategy is designed to capitalise on structural trends within the Indian economy, while prioritising capital preservation and transparency.

With assets under management surpassing Rs1,000 crore, EIML is firmly positioned as a boutique asset manager known for its client-centric approach, clarity in communication, and high-conviction portfolios.

As investor needs evolve, we continue to refine our offerings and deepen engagement, staying true to our purpose of enabling sustainable, long-term wealth creation.

Proprietary Framework: E-QUAL - Governance at the Core

At the heart of our investment process is E-QUAL, EIMLs proprietary governance scoring model - a first-of-its-kind framework in India that objectively evaluates management quality across three key dimensions:

• Management Capability

• Management Integrity

Wealth Distribution to Shareholders

E-QUAL has helped us steer clear of governance-related setbacks, contributing to our track record of zero portfolio blowouts - underscoring our commitment to quality and risk-conscious investing.

PMS Strategies a. Emkay Capital Builder PMS

A multi-cap strategy designed to uncover high-conviction opportunities across the market-cap spectrum.

• Focuses on 3-5+ year investment horizons with a structured approach to portfolio construction

Screens the top 600 companies by market capitalisation

• Applies a disciplined three-pronged investment filter to identify fundamentally strong, scalable businesses

b. Emkay Indias Golden Decade of Growth

A flexi-cap PMS strategy anchored on five high-conviction macro themes:

• Rising Consumption

• Digitalisation and AI

• Energy Transition

Financialisation of Savings

• Manufacturing Renaissance

With 25-30 stock positions and flexible allocations benchmarked to the Nifty 500, the strategy aims to capture Indias transformation story through focused, risk-adjusted stock selection. c. Emkay New Vitalised India Strategy

A multi-cap PMS strategy positioned to benefit from

Indias economic revival and industrial resurgence.

Invests in companies likely to benefit from rising capex (public and private), export growth, and domestic substitution

• Emphasises absolute returns with strict discipline on purchase price and valuation comfort

AIF Strategies

a. Emkay Emerging Stars Fund

A thematic multi-cap AIF (Category III) that aims to unlock long-term capital appreciation by identifying high-potential companies in the small- and mid-cap space.

Benchmark: BSE SmallCap Index

Series IV completed early distributions to investors, generating XIRRs of 20-25% (post fees)

Series VI launched in 2024-25, continuing the successful thematic investing model

Recognised by PMS-AIF World for performance excellence

b. Emkay Capital Builder AIF

An open-ended multi-cap Category III AIF designed to identify scalable businesses with strong fundamentals and attractive valuations.

• Targets a long-term investment horizon of 3-5+ years

• Blends top-down macro trends with bottom-up stock selection

Key Highlights of 2024-25

• Launched our maiden open-ended AIF - Emkay Capital Builder Fund - to meet growing demand for alternative investment solutions among ultra-high-net-worth individuals (UHNIs). This multi-cap strategy offers flexibility, transparency, and a disciplined approach to long-term wealth creation

• 4 out of 6 strategies outperformed the benchmark during the year

• Assets under management and advisory crossed Rs1,475 crore, driven by strong investor interest in new offerings and robust market performance

Established our first international office in Dubai, marking a strategic expansion beyond India to serve a broader base of global investors

3. Wealth Management

Emkay Wealth offers wealth management solutions tailored for ultra-high-net-worth individuals (UHNIs), family offices, trusts, corporate treasuries, and private equity firms, among others. Our philosophy is rooted in a holistic, client-centric approach that begins with in-depth risk profiling and financial goal-setting. informs a disciplined asset allocation strategy and customised portfolio construction - designed to reflect each clients unique risk appetite, investment horizon, and wealth aspirations.

What sets us apart is not only our commitment to personalisation but also our emphasis on processes, research, and continuous monitoring and evaluation. Our services go beyond portfolio advisory to include performance evaluation, timely rebalancing, real-time

Management Information Systems (MIS) solutions, and hands-on transactional support - all delivered through a robust infrastructure and a pan-India network of experienced wealth managers and private bankers. Backed by proprietary research and data-driven insights, our wealth advisory offering integrates both quantitative frameworks and qualitative judgement. This dual-lens approach allows us to curate investment opportunities across a wide spectrum of asset classes and financial products. Our advisors spend considerable time understanding client objectives before recommending tailor-made strategies - whether for wealth preservation, growth, or succession planning.

Our wealth management proposition is further strengthened by our ability to seamlessly integrate traditional and alternative investment avenues—including equity, fixed income, structured products, and Alternative Investment Funds access,(AIFs). andWith evolving market dynamics and increasingly sophisticated investor preferences, we focus on providing differentiated strategies that balance risk and return. Our advisory-led model ensures clients receive unbiased recommendations backed by rigorous due diligence, aligning every portfolio with long-term financial goals and market realities.

Our research team supports clients with regular publications and market outlook, enabling timely and informed decision-making. We focus on five core pillars - robust product curation, consistent client engagement, process-driven asset allocation, technology-backed delivery, and transparency.

Since its inception, Emkay Wealth has rapidly scaled its presence and impact. In 2024-25, our client base grew beyond 37,500, with assets under advisory and management crossing Rs 17,500 crore. Our focus on quality relationships and advisory-driven engagement resulted in advisory revenue growth of 55% year-on-year to Rs 1,817 Lakhs, while transaction-based revenue grew by 6% year-on-year to Rs 7,669 Lakhs - underscoring the strength of our value proposition and continued client trust.

4. Commodity

We offer a robust, technology-enabled suite of

Commodity solutions, supported by memberships with leading exchanges. Our integrated offering is designed to empower clients through seamless execution, real-time insights, and research-driven strategies.

Services

We cater to a wide range of trading and investment needs in commodities through:

• Advanced Trading Platforms - Clients can trade via multiple platforms and access a wide range of algorithmic strategies. For latency-sensitive clients, we offer Direct Market Access (DMA) for faster trade execution

• Multi-Channel Execution - Clients can execute trades through our Call & Trade facility over recorded lines, as well as through various chat platforms

• Comprehensive Support - Electronic contract

- notes, online back-office based notifications ensure full transparency and convenience

• Real-Time Research - Analysts provide intraday and positional strategies across multiple channels to support timely and informed trading decisions

• Insightful Reports - Daily Technical Reports,

Monthly Fundamental Reviews, and Special

Commodity Reports keep clients updated on market trends and investment opportunities

Opportunities

Rising High-Net-Worth Individual (HNWI) Population

Indias UHNI count reached 13,600 in 2023-24, marking a

6% annual growth. This population is projected to soar by 50% by 2027-28, far outpacing the global growth average of 30%. India is home to over 850,000 HNIs, and this is projected to double to 1.65 million by 2026-27. Interestingly, 20% of these millionaires are under 40 years of age, signalling the growing influence of young wealth creators. forThis demographic shift presents significant wealth management firms and financial institutions to tap into an increasingly affluent client base. As the wealth of individuals continues to grow, the demand for personalised financial services, advanced investment strategies, and bespoke asset management solutions is expected to rise.

Consequently, financial institutions are expecting a need to offer tailored financial planning and diversified products to meet the evolving needs of these affluent clients, thereby catering to a rapidly expanding and lucrative market.

(Source: https://www.thehindu.com/real-estate/the-rise-of-indian - h n i s - a n d - u h n i s - i n - 2 0 2 4 / a r t i c l e 6 9 0 2 2 7 9 1 . e c e # : ~ : t e x t = P o p u l a t i o n % 2 0 s u r g e : % 2 0 T h e % 2 0 countrys%20UHNI,to%201.65%20million%20by%20 2027.)

Expanding IPO Pipeline and Capital Market Activity

Indias capital markets are experiencing significant driven by a surge in IPO activity. The National Stock Exchange (NSE) has recorded the highest number of initial public offerings (IPOs) in Asia in the calendar year 2024 with a total of 268 listings across the mainboard and the SME platform.

In 2023-24, the exchange recorded 90 successful listings on the mainboard while 178 small and medium enterprises made their debut on the NSEs Emerge, cumulatively raising Rs 1.67 trillion. This marks Indias increasing importance in the global financial ecosystem. These developments reflect a booming market, fuelled by strong investor interest and expanding corporate listings, creating significant opportunities for both companies seeking capital and investors looking for new avenues for growth.

(Source: https://www.business-standard.com/markets/ipo/ nse-leads-asia-in-ipos-with-268-listings-in-2024-across-mainboard-sme-125010300761_1.html)

Fintech Innovations and Digital Payment Growth

Indias fintech sector is undergoing rapid innovation, transforming the way financial services are delivered. The growth of digital payment platforms like the Unified Payments Interface (UPI) has revolutionised daily transactions, making it easier for individuals to send and receive money instantly. In addition to digital payments, embedded finance solutions, powered by AI and other technologies, are gaining traction. The rise of digital payments, for example, is projected to grow at an annual rate of 42.4% between

2024-25 and 2036-37, offering new ways for consumers to pay seamlessly for goods and services. This explosion of fintech innovation presents immense potential for financial institutions to integrate advanced technologies, improve user experiences, and create more accessible financial solutions for both consumers and businesses.

(Source: https://www.researchnester.com/reports/autonomous- iot-payments-market/6532)

Growth in Alternative Investment Market

Indias alternative investment market is one of the fastest-growing segments within the financial sector, poised to expand fivefold, reaching an estimated USD 2 trillion by 2033-34. Currently valued at USD 400 billion, with SEBI-registered Alternative Investment Funds (AIFs) contributing

USD 130 billion, this market offers an exciting avenue for investors looking to diversify their portfolios. Alternative growth, investments, including private equity, venture capital, real estate, and hedge funds, are increasingly seen as viable options for higher returns, especially in a low-interest-rate environment. This segment is expected to grow on the back of rising investor sophistication, favourable regulatory developments, increasing institutional participation, and the push for broader capital market reforms. As the market matures, more financial institutions are expected to offer AIFs, further stimulating growth and attracting both domestic and international investors. Long-term investors such as family offices, endowments, pension funds, and ultra-high-net-worth individuals (UHNIs) are likely to benefit the most from this shift, given their ability to withstand longer lock-in periods and capture value over extended horizons. The maturing startup ecosystem and expanding pool of high-net-worth individuals are also accelerating capital flows into AIFs, strengthening the long-term outlook for the segment.

(Source: https://www.moneycontrol.com/news/business/ markets/india-s-alternative-investment-market-to-grow-five-fold-in-next-decade-12891516. )

Financialisation of Savings

India is witnessing a structural shift in how households manage their wealth, with a growing preference for financial assets over traditional investments such as gold and real estate. As income and financial literacy levels rise, more individuals are channelling their savings into mutual funds, insurance, equities, and alternative investment instruments.

This financialisation trend is being driven by multiple factors, including easier access to digital investment platforms, targeted investor awareness programmes, and the rising cost and complexity associated with managing physical assets. The mutual fund industry in 2023-24 witnessed robust asset growth, substantial inflows, and a rising preference for Systematic Investment Plans (SIPs). Amid a thriving market and growing investor trust, mutual funds continued to be a favoured option for long-term wealth accumulation. Although overall equity inflows hit an 11-month low in March 2025, according to AMFI, the industry recorded its 49^th consecutive month of positive equity inflows - underscoring the enduring confidence of retail investors. This is particularly evident in the nearly 10% rise in small-cap mutual fund inflows during March 2025 compared to February 2025, signalling selective investor conviction in Indias long-term growth story, even amidst short-term volatility. The total assets under management (AUM) by mutual fund houses in India surged 23% year-on-year to Rs 65.7 lakhs crore as of March 2025, marking a new all-time high. With total folios reaching 23.5 crore, growing participation from both metro and B-30 cities signals deeper financial inclusion nationwide. As more savings enter formal financial channels, this unlocks a larger investable pool for capital markets, insurance products, and alternative funds - offering vast growth opportunities for asset managers, wealth advisors, and financial institutions.

Threats

Emkays progress could be hindered by several challenges, including geopolitical uncertainties, market fluctuations, rising commodity and energy costs, inflationary pressures, and the possibility of interest rate hikes designed to curb liquidity. Alongside these primary risks, it is essential to consider additional factors that may pose a threat to our growth and overall success.

Risk Mitigation

Risk	Risk Description	Risk Mitigation Strategy
Technology Risk	A surge in user traffic may overload the server capacity, causing service disruptions. Additionally, system failures, security breaches, and IT infrastructure issues could impede operations.	We have adopted a scalable cloud-based CRM for the Commodity PCG Desk and integrated Web API services with the Wealth CRM for realtime data flow. Ongoing tech upgrades, system redundancies, and disaster recovery protocols are in place to ensure business continuity and platform resilience.
Competition Risk	The growing presence of emerging competitors threatens our market share and could disrupt business stability.	To counter this risk, we differentiate ourselves through exceptional research, advisory services, and alpha generation. We continue to diversify our offerings and adapt to market fluctuations to stay ahead of competitors.
Regulatory and Compliance Risks	Financial services companies in India are subject to a complex regulatory environment, which can pose risks to their operations. Failure to comply with these regulations can result in fines, penalties, and reputational damage.	We comply with all required frameworks across our business verticals, guided by experienced legal and compliance teams. We continuously monitor regulatory developments and adapt our policies, processes, and internal controls to ensure full compliance. Regular audits, employee training on regulatory changes, and proactive engagement with regulatory bodies help us stay aligned with evolving mandates and mitigate the risk of non-compliance.

Reputation Risk	Negative public perception, dissatisfaction among stakeholders, or adverse media coverage could harm our reputation, leading to customer loss and regulatory scrutiny.	We mitigate this risk by fostering a strong corporate culture focused on ethics and accountability. A comprehensive crisis management plan is in place, and we prioritise active engagement with stakeholders to maintain trust and a positive reputation.
Cyber Attacks & Data Breaches	Cybersecurity threats, including data breaches and hacking, could compromise sensitive information and damage our reputation.	We have fortified our IT systems with advanced firewalls, data encryption, and multi-factor authentication. Regular penetration testing, staff training, and a dedicated incident response plan ensure continuous monitoring and fast containment of threats.
Talent Acquisition & Retention	1 liability to attract or retain skilled professionals may hinder innovation, execution quality, and institutional knowledge.	To address this, we offer competitive compensation packages, career development opportunities, and foster an inclusive and positive corporate culture. We also implement employee engagement programmes to improve retention and morale.

Financial Performance (Rs in lakhs)

Particulars	As of	As of
	31st March, 2025	31st March, 2024
ASSETS
Financial Assets
(a) Cash and cash equivalents	4,647	4,782
(b) Bank balance other than (a) above	49,275	53,498
(c) Stock in trade (Securities held for trading)	36	130
(d) Trade receivables	9,413	12,515
(e) Loans	1,799	3,958
(f) Investments	3,194	2,616
(g) Other financial assets	48,717	23,323
Sub-total - Financial Assets	1,17,081	1,00,822
Non-Financial Assets
(a) Current tax assets (net)	167	384
(b) Deferred tax assets (net)	849	-
(c) Property, plant and equipment	3,156	3,243
(d) Right of use assets	863	890
(e) Capital work-in-progress	26	-
(f) Intangible assets under development	13	-
(g) Other intangible assets	118	146
(h) Other non-financial assets	1,063	1,041
Sub-total - Non-Financial Assets	6,255	5,704

Financial Performance (Rs in lakhs)

Particulars	As of 31st March, 2025	As of 31st March, 2024
Total - Assets	1,23,336	1,06,526
LIABILITIES AND EQUITY
Liabilities
Financial Liabilities
(a) Trade payables	20,353	20,889
(b) Debt securities	4,600	-
(c) Borrowings (other than debt securities)	-	3,255
(d) Deposits	1,308	1,032
(e) Lease liabilities	914	916
(f) Other financial liabilities	55,573	50,836
Sub-total - Financial Liabilities	82,748	76,928
Non-Financial Liabilities
(a) Current tax liabilities (net)	133	17
(b) Provisions	4,328	3,710
(c) Deferred tax liabilities (net)	-	19
(d) Other non-financial liabilities	5,810	1,764
Sub-total - Non-Financial Liabilities	10,271	5,510
Equity
(a) Equity share capital	2,537	2,469
(b) Other equity	27,780	21,619
Sub-total - Equity	30,317	24,088
Total - Liabilities and Equity	1,23,336	1,06,526

 

	2024-25	2023-24	2022-23	2021-22
Revenue	36,124	31,501	21,548	27,377
Earnings before interest, tax and depreciation & amortisation	7,933	5,712	2,601	5,685
Profit before tax	6,073	4,242	1,255	4,611
Profit for the year	5,683	3,244	1,408	3,380
Total assets	1,23,336	1,06,526	73,095	76,393
EPS (in Rs)	22.80	13.16	5.71	13.72

Financial Ratios

Metrics		Standalone		Consolidated
	31st March, 2025	31st March, 2024	% Change Increase (Decrease)	31st March, 2025	31st March, 2024	% Change Increase (Decrease)	Explanation in Case Change is 25% or More, As Compared to The Previous Year
Current ratio	1.22	1.10	10.91%	1.30	1.21	7.44%
Debt equity ratio	0.28	0.2	40.00%	0.15	0.14	7.14%

 

Metrics		Standalone		Consolidated
	31st March, 2025	31st March, 2024	% Change Increase (Decrease)	31st March, 2025	31st March, 2024	% Change Increase (Decrease)	Explanation in Case Change is 25% or More, As Compared to The Previous Year
Net profit margin	17.34%	8.63%	100.93%	15.73%	10.30%	52.72%	Net Profit margin has risen due to substantial jump in profits backed by increased revenue
Return on net worth	24.84%	14.11%	76.05%	18.75%	13.47%	39.20%	Substantial jump in profits have contributed for higher return on net worth
Interest coverage ratio	7.78	6.56	18.60%	9.73	9.64	0.93%

INFORMATION TECHNOLOGY

We prioritise improving interfaces, optimising efficiencies, and enhancing the customer experience across all platforms. Our core strength lies in fostering innovation and integrating feedback into actionable improvements. This approach enables our team to build a platform that ensures a seamless experience at every interaction. By anticipating customer needs, swiftly adapting to disruptions, and offering relevant solutions, we are building a dynamic ecosystem that evolves with market demands. This strategy not only ensures a comprehensive user experience but also fuels our growth within the industry. In 2024-25, we implemented several key initiatives aimed at advancing our technology processes:

• Upgraded various enterprise systems to the latest versions, enhancing performance, stability, and security

• Migrated core servers to next-generation operating systems to reduce technical debt, improve supportability, and ensure long-term system stability

• Deployed advanced security protocols and tools to proactively safeguard data and IT assets from potential threats

Executed significant improving network throughput, system uptime, and internal application performance

• Rolled out new collaborative tools and departmental technologies, supporting improved productivity across functions

• Implemented enhanced data storage solutions aligned with compliance and retention requirements

Strengthened IT compliance through structured initiatives aimed at meeting evolving industry regulations

Faster Trading Experience through Digital Innovation

We are dedicated to providing an exceptional trading experience, empowering our clients to make informed financial decisions with ease. Our focus is on delivering faster, more accurate, and secure access to critical data.

Through our innovative platform offerings and API initiatives, we aim to provide superior performance and an enhanced user experience, even in a highly competitive market.

CYBERSECURITY

We strengthened our infrastructure and information security by implementing comprehensive measures. Our framework is designed to align with regulatory guidelines, ensuring both resilience and compliance.

• Conducted periodic vulnerability assessments and penetration testing through a CERT-IN empanelled auditor to proactively identify and address platform-level risks

Treated our workforce as the first line of defence by running simulated phishing and cyber-attack drills, followed by targeted training programmes to reinforce awareness and best practices

Engaged a CERT-IN approved third-party Security Operations Centre (SOC) for round-the-clock monitoring and real-time incident response to safeguard critical infrastructure

• Deployed an advanced Endpoint Detection and Response (EDR) solution to secure core assets, alongside virtual patching technology to protect legacy systems against known vulnerabilities

• Implemented an Identity Threat Detection and Response (ITDR) platform to prevent unauthorised access and ensure robust identity governance across systems

HUMAN RESOURCES

At Emkay, we firmly believe that our excellence and the exceptional service we provide are powered by our greatest asset - our people. A motivated, happy team is the foundation of everything we do. We understand that experience is the best teacher, and we blend the wisdom of seasoned veterans with the energy of dynamic professionals. This balance allows us to effectively meet the diverse needs of our clients, whether in institutional investment or wealth management.

Focused Learning and Development

To ensure our team remains at the forefront of the industry, we invest heavily in training and skill development programmes, keeping our services sharp and innovative. Our training initiatives are delivered through a robust Learning

Management System (LMS) and in-house programmes, covering 90% of our workforce. We conducted continuous training interventions across technical, functional, and behavioural domains. Training was also delivered through customised programmes tailored to enhance core and soft skills.

We also design and conduct customised training to build both behavioural and functional competencies. In addition, an offsite was organised for the Business Support teams centred on the theme of ‘Collaboration and ‘ONE EMKAY, reinforcing team synergy and shared purpose.

Culture of Recognition and Motivation

Our successful rewards and recognition programme plays a vital role in keeping morale high and ensuring that our people remain driven. In 2024-25, we launched a formal Rewards and Recognition programme applicable to all employees, further strengthening our appreciation-led culture.

At Emkay, we foster an environment where every achievement is celebrated, and successes, big or small, are shared across the team. This culture of appreciation and recognition sets us apart, as we actively encourage the growth and dreams of each team member.

Talent Acquisition and Employer Branding

We continue to attract talent from reputed B-schools and experienced professionals across the industry, focused on building a young, dynamic and diverse workforce. We successfully concluded the CA Industrial Trainees Selection

Process and participated as an organisation in the Tata

Mumbai Marathon (January 2025), a team-building initiative coordinated end-to-end by our HR team.

Our recruitment strategy is also reflective of our strong culture - nearly 50% of our new hires come through employee referrals, underscoring the trust and satisfaction of our people. We also initiated our employer branding activity on ‘Ambition Box to enhance our talent visibility and engagement.

The true strength of our team lies in the inclusive work culture we have built. At Emkay, every individuals success is not just celebrated but cherished by all. We take immense pride in the accomplishments of our people, knowing that the Companys growth is directly tied to their passion, dedication, and excellence.

Performance Management and Well-being

We regularly conduct mid-year and annual performance reviews to ensure fair feedback and appraisal. Health and well-being remain a priority - through initiatives like health check-up camps and ‘Ease of Banking drives, we aim to address employees lifestyle and financial needs in a convenient, supportive manner. The health insurance cover for employees and their families was doubled this year, and the ‘1-to-1 Help Employee Assistance Programme was extended to support mental well-being.

Long-term Incentives and Retention

We also offer Employee Stock Option Plans (ESOPs) as a way to reward performance and align long-term wealth creation with the Companys success. These are designed to retain top talent and instil a sense of ownership across the organisation. In Q3 2024-25, 1,79,012 ESOPs, aggregating to 0.72% of the outstanding equity of the Company, were exercised by employees. As of 31^st March, 2025, Emkays team proudly comprises more than 500 employees, each contributing to our collective success and making us who we are today.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACIES

At Emkay, we recognise the critical importance of maintaining robust Internal Control Systems that are not only adequate but also effective and in line with the size of our business.

Our professional management team, in collaboration with clearly defined policies and procedures, plays a key role in ensuring the seamless functioning of these systems.

We maintain a strong audit programme, a solid internal control framework, and comprehensive risk monitoring, all supported by an efficient Management Information System (MIS).

Our internal systems are regularly updated in accordance with industry best practices, and internal audits are conducted to reinforce the effectiveness of these controls.

The management team consistently evaluates these systems, ensuring that standard policies and norms are maintained for the accuracy and integrity of financial records used in preparing financial statements and other reports. Integral to this process is our MIS, which undergoes regular checks to ensure its operational efficiency. Additionally, we engage independent audit firms to carry out regular significantly from these internal audits. Their reports are carefully reviewed, and executive summaries, along with Action Taken Reports (ATR), outlining the steps taken by management to address any issues, are presented at Audit Committee and Board meetings for thorough evaluation.

The Audit Committee meticulously reviews the findings from internal audits and ensures that corrective measures are implemented to improve system with the Companys internal control objectives. The Boards acknowledgement of the auditors work provides independent validation of the information shared by management regarding the Companys operations and performance.

CAUTIONARY STATEMENTS

The Management Discussion and Analysis includes forward-looking statements related to the Companys objectives, plans, estimates, and expectations. These statements are made in accordance with relevant securities laws and regulations. However, it is important to recognise that actual outcomesmaydiffer due to various factors, including but not limited to, economic developments, changes in industry demand and supply dynamics, fluctuations in input prices, modifications to government regulations and tax laws, and potential legal or labour-related issues. These variables have the potential to impact the Companys operations and performance substantially.