Everlon Financials Ltd Management Discussions

Annexure C

Industry Overview

The Indian financial services sector continues to play a significant role in supporting economic growth through credit expansion, financial inclusion and capital market development. The Non-Banking Financial Company (NBFC) sector remains an important pillar of the financial ecosystem by catering to niche customer segments and providing customized financial solutions.

The Company continues to focus on its NBFC activities, investment in securities and financing business while exploring opportunities for sustainable growth.

Business Overview

The Company is engaged in the business of providing financial services, funding of solar plants, trading and investment in securities and other financing activities.

Financial Performance

During the financial year 2025-26, the Companys revenue from operations increased to 1,647.67 lakhs from 1,311.42 lakhs in the previous year. However, due to higher expenses and adverse movement in investment valuations, the Company reported a loss after tax of 665.67 lakhs during the year.

Segment-wise Performance

The Company operates primarily in a single business segment comprising financial services, investments, financing activities and trading in securities. Accordingly, separate segment reporting is not applicable.

Opportunities & Risks

The Company continues to explore opportunities in the financial services sector while remaining cautious of market volatility, regulatory changes, credit risk and economic uncertainties.

Internal Control Systems

The Company has adequate internal control systems commensurate with the size and nature of its business. The controls are regularly reviewed to ensure compliance with applicable laws and efficient business operations.

Outlook

The Company remains focused on strengthening its financial services business, maintaining regulatory compliance and pursuing sustainable growth opportunities.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various economic, regulatory, market and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent developments.