Helpage Finlease Ltd Management Discussions

- Global Economy:

The global economy remained resilient during 2025, with world GDP growth of 3.4%, supported by technology-led investments, moderating inflation, and relatively stable global trade. Easing trade tensions and measured monetary policy actions by major central banks contributed to improving financial stability and supported investor confidence. Emerging markets continued to outperform advanced economies, driven by resilient domestic demand and sustained economic activity.

However, the global economic environment remained subject to heightened geopolitical uncertainties arising from the continuing Russia-Ukraine conflict and escalating tensions in the Middle East. These developments led to volatility in commodity and energy markets, higher input costs, persistent inflationary pressures, and tighter financial conditions, thereby moderating global growth expectations.

For the financial services and lending sector, these macroeconomic developments continue to influence the cost of funds, liquidity conditions, credit demand, asset quality, and overall risk management. Inflationary pressures, interest rate movements, and market volatility require financial institutions to adopt prudent lending practices, strengthen credit assessment frameworks, and maintain adequate liquidity buffers. At the same time, resilient economic activity in emerging markets, particularly India, supported by strong domestic demand, infrastructure investment, and policy reforms, continues to provide opportunities for sustainable credit growth. The evolving global environment reinforces the importance of robust risk management, operational resilience, and disciplined capital allocation in ensuring long-term business sustainability.

- Outlook:

The global economy is expected to witness moderate growth during 2026 and 2027, supported by resilient labour markets, easing inflationary pressures, and continued investments in technology and infrastructure. According to the IMFs April 2026 World Economic Outlook, global GDP is projected to grow by 3.1% in 2026 and 3.2% in 2027, although growth expectations have been moderated due to heightened geopolitical tensions, evolving trade dynamics, and tighter financial conditions.

Advanced economies are expected to register steady but moderate growth, supported by selective fiscal measures and improving labour market conditions, while emerging economies are projected to remain the primary drivers of global economic expansion. India is expected to continue as one of the fastest-growing major economies, supported by robust domestic demand, sustained infrastructure investments, manufacturing expansion, digitalisation, and ongoing structural reforms.

Inflation is expected to gradually moderate over the medium term, although it may remain above historical averages in several economies. Central banks are expected to adopt a calibrated approach

to monetary policy based on evolving inflation trends and economic conditions. At the same time, geopolitical tensions, supply chain realignments, energy price volatility, and trade policy uncertainties are likely to remain key risks influencing the global economic outlook.

The global economic outlook continues to be influenced by geopolitical developments, evolving trade policies, supply chain realignments, and volatility in commodity and energy markets. Ongoing geopolitical conflicts, protectionist measures, and disruptions in global trade routes may continue to pose risks to economic growth and financial stability. Nevertheless, continued advancements in technology, digital transformation, and the transition towards sustainable and green energy are expected to create new opportunities for productivity, investment, and long-term economic growth.

Overall, while downside risks remain, the global economy is expected to demonstrate resilience, supported by policy coordination, technological innovation, and the gradual normalisation of inflation and financial conditions.

- Indian Economy

The Indian economy continued to demonstrate resilience during FY 2025-26 despite global geopolitical uncertainties, evolving trade dynamics, and volatile financial markets. Supported by strong domestic demand, sustained public capital expenditure, and stable macroeconomic fundamentals, India remained among the fastest-growing major economies globally. According to the Second Advance Estimates, real GDP is estimated to have grown by 7.6%, reflecting broad-based expansion across key sectors of the economy.

Private consumption remained the primary driver of economic growth, aided by easing inflation, improving employment conditions, and rising disposable incomes. Government-led infrastructure investments and policy initiatives continued to strengthen manufacturing, construction, and allied sectors while enhancing long-term economic capacity. Continued emphasis on digitalisation, financial inclusion, and structural reforms further supported investment and business activity.

Inflation remained broadly under control during the year despite periodic volatility in global commodity and energy prices. The banking and financial system continued to remain well-capitalised and adequately liquid, supporting the flow of credit across productive sectors of the economy.

Looking ahead, Indias strong economic fundamentals, favourable demographics, expanding digital economy, and continued focus on infrastructure development and structural reforms are expected to support sustainable economic growth. While external risks arising from geopolitical developments and global financial market volatility continue to persist, the Indian economy remains well-positioned to sustain its growth momentum over the medium term.

- Outlook On the Indian Economy

The outlook for the Indian economy remains positive, supported by strong domestic demand, continued infrastructure investments, structural reforms, and increasing digital adoption. Stable macroeconomic fundamentals, improving consumption, and sustained public capital expenditure are expected to support economic growth over the medium term.

While external challenges such as geopolitical uncertainties, global trade disruptions, and commodity price volatility may pose risks, Indias resilient economic framework, favourable demographics, and policy support are expected to sustain growth momentum. The economy is expected to remain among the fastest-growing major economies, providing a stable foundation for long-term economic development.

- INDUSTRY OVERVIEW:

Financial Services [Non-Banking Financial Company (NBFC)- Lending]

Global Financial Services and Lending Industry

The global financial services and lending industry is experiencing robust expansion, with the broader financial services market valued at approximately USD 28.9 trillion in 2025 and projected to reach USD 60.8 trillion by 2034 , representing a compound annual growth rate (CAGR) of 8.6%

Within this ecosystem, the lending market-encompassing consumer, commercial, mortgage, and other loan products-has demonstrated particularly strong performance. The global lending market grew from $12.18 trillion in 2025 to $13.07 trillion in 2026 , a CAGR of 7.3%, and is forecast to reach $17.28 trillion by 2030. Commercial lending, a key sub-segment, is expanding even more rapidly, growing from **$19.04 trillion in 2025 to $22.15 trillion in 2026** at a CAGR of 16.3%, with projections reaching **$40.38 trillion by 2030

- Indian Financial Services & NBFC Sector

The Indian Banking, Financial Services, and Insurance (BFSI) sector has undergone a massive transformation, reflecting the countrys deepening financialization and formalization of household savings. From a market capitalization of Rs1.8 lakh crore in 2005, the sector has expanded over 50-fold to reach approximately Rs91 lakh crore in 2025, growing at a robust Compound Annual Growth Rate (CAGR) of around 22%

While banks remain the dominant players, their share of the BFSI market capitalization has reduced from 85% in 2005 to 57% in 2025. This shift highlights the rising prominence of Non-Banking Financial Companies (NBFCs), insurers, fintechs, and asset management companies as significant value creators. Specifically, NBFCs have cemented their role, contributing 18% of the total BFSI sector earnings in FY24. The credit portfolio of NBFCs grew by close to 20% in FY25, significantly outpacing the banking sectors expansion of 12%, underscoring their crucial role in meeting the financing needs of households and enterprises that require speed and flexibility.

The growth trajectory of NBFCs is expected to moderate from the 23% expansion seen in FY24 to a more sustainable growth of 15-17% over FY25 and FY26. This moderation is due to a combination of regulatory recalibration and strategic shifts toward more sustainable, risk-adjusted growth.

Companys Overview:

Helpage Finlease Limited is a non-deposit taking and non-systematically important Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) under Section 45-IA of Reserve Bank of India Act, 1934, listed on Bombay Stock Exchange (BSE).

The Company is engaged into the lending business mainly focused for catering the financial needs for education fee finance and small and medium enterprise (SMEs) which eventually have a high role to play to boost the growth of developing country like India. The Company has also obtained registration with four CICs (Credit Information Companies) and maintaining the data as required.

The Management Discussion and Analysis Report (MDAR) provide an insight into the performance of the Company in the previous years, in the current year and its future plans besides the risks, uncertainties associated with the Companys business along with the management perception and vision to win over the anomalies of future business situations. The Management Discussion and Analysis Report (MDAR) contain managements interpretation of financial performance of the Company more over actual results are reflected in the financial statements which should be studied in consonance with the Management Perspective.

- Opportunities and Threats- Opportunities

The increasing demand for student fee financing, growing credit requirements of Micro, Small and Medium Enterprises (MSMEs), rapid digitalisation of financial services and government initiatives promoting financial inclusion provide significant growth opportunities for the Company. These factors are expected to support business expansion and enhance credit penetration across underserved segments.

Threats

The Company operates in a dynamic business environment and faces challenges arising from changes in regulatory requirements, interest rate fluctuations, credit risk, increasing competition and macroeconomic uncertainties. The Company continues to mitigate these risks through prudent lending practices, robust risk management systems and strong governance standards.

- Segment Wise or Product Wise Performanc e

	FY 2025-26		FY 2024-25
	Student Education Fee Finance	SME Lending	Student Education Fee Finance	SME Lending
Income	4804298	124120534	35,90,568	8,28,70,922
Grand Total	4804298	124120534	35,90,568	8,28,70,922
Expenses	1639720	97876246	14,40,624	6,97,11,205
Grand Total	1639720	97876246	14,40,624	6,97,11,205
Profit	3164578	26244288	21,49,944	1,31,59,717

- Strategic Growth Roadmap (Outlook)

Helpage Finlease Limited remains focused on achieving sustainable and profitable growth by strengthening its presence in student fee financing and SME lending. It aims to enhance its lending portfolio through prudent credit underwriting, technology-driven processes and a customer-centric approach while maintaining strong asset quality and regulatory compliance. The Company will continue to focus on operational efficiency, effective risk management and responsible lending practices to create long-term value for its stakeholders.

- Risks & Concerns:

Risk management forms an integral part of our Companys Business. Being a lending institution, there are inherent financial and nonfinancial risks. We have a proper risk management framework to identify, assess, monitor and manage various types of internal and external risks. The company identifies and monitors risks periodically.

elpage Finlease Ltd.

BSE Listed NBFC Company

Internal Control Systems & their adequacy:

The Company has established comprehensive internal control procedures tailored to its scale and operations. These controls are overseen by the Board of Directors, who are responsible for setting guidelines and ensuring their adequacy, effectiveness, and consistent application.

The internal control framework is designed to promote operational efficiency, ensure the accuracy and reliability of accounting and management information, and comply with all applicable laws and regulations. It also safeguards the Companys assets by facilitating the timely identification and management of risks, including operational, compliance-related, economic, and financial risks.

- Performance highlights :

The highlights of the Companys performance are as under: -

> Total Revenue from operations increased from Rs. 8,64,615,00/- to Rs. 12,89,05,200/> Net Profit for the year increased from Rs1,47,53,900/- to Rs 2,94,08,900. /-

> Earnings per share (diluted) had increased from Rs. 1.54 to Rs. 2.96

- Human Resources/Industrial Relations :

The Company HR function is aligned with the Companys overall growth vision and continuously works on areas such as recruitment and selection policies, disciplinary procedures, reward/recognition policies, learning and development programmes as well as all-round employee development.

The Company provides a safe and rewarding environment that attracts and retains a talented team and where employees are engaged in delivering exceptional results to the customers and investors.

- Key Financial Ratios :

There have been significant changes (i.e., change of 25% or more) in the ratios as compared to previous financial year .

Particulars	Current Year	Previous Year	%CHANGE	Reason for >25% Change
Current Ratio	1.20	1.59	-24.21	due to decrease in current assets
Debt-Equity Ratio	5.38	4.93	9.08	due to Increase in borrowings
Debt Service Coverage Ratio,	0.13	0.11	18.26	-
Return on Equity Ratio	0.16	0.09	72.58	due to Increase in Net profit
Inventory turnover ratio	NA	NA	NA	-
Trade Receivables turnover ratio	3.82	1.57	143.59	-
Trade payables turnover ratio	4.00	4.24	-5.65	due to Increase in Finance cost
Net capital turnover ratio	0.68	0.53	29.08	due to Increase in Income
Net profit ratio	0.23	0.17	33.70	-
Return on investment	NA	NA	NA	-
Interest Service Coverage Ratio	1.53	1.54	-0.46	-
Operating Profit Margin (%)	0.31	0.24	29.40	-
Net Profit Margin (%)	0.23	0.17	33.70	-

- Disclosure of Accounting Treatment :

There has been no change in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard.

- Cautionary Statement:

The statements made in this report describing the Companys objectives, projections, estimates and expectations, may constitute forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ .

Date: August 05, 2026	By the order of Board
	For Helpage Finlease Limited
Place: Delhi	Sd/-
	Sidharth Goyal
	Managing Director & CFO
	DIN:02855118